Statkraft AS: Result for the fourth quarter and full year 2016
Strong operating result
(Oslo, 16 February 2017) Statkraft AS recorded an underlying EBITDA of NOK 4947 million in the fourth quarter of 2016. This is an increase of NOK 1717 million compared with the corresponding period in 2015. The result was held back by unrealised currency effects and showed a quarterly net profit of NOK 748 million.
The increase in EBITDA was mainly driven by both higher Nordic power prices and production. The average Nordic power price in the fourth quarter was 34.5 EUR/MWh. This is an increase of 57% compared with the modest price level experienced in the same period in 2015. Statkraft's total production increased by 3.7 TWh to 19 TWh in the fourth quarter 2016, compared to the same period in 2015.
- The underlying EBITDA is strong and reflects successful energy management. We have been able to utilise our large Nordic hydro reservoirs and optimised the production, says CEO Christian Rynning-Tønnesen.
Statkraft's production in 2016 reached a record high 66 TWh compared to 56.3 TWh in 2015. The average system price at Nord Pool was 26.9 EUR/MWh, an increase of 28% from the previous year. For 2016, the underlying EBITDA ended at a solid NOK 13 863 million, compared to NOK 10 853 million in 2015. The result for 2016 was negatively influenced by impairments mainly caused by reduced market expectations, partly offset by positive currency effects. Net profit before tax was NOK 5223 million and net profit after tax ended at NOK -179 million.
- The energy market is challenging and Statkraft is implementing a performance improvement programme and a revised strategy. This will enable Statkraft to be one of the most competitive companies in our industry and strengthen our position for further growth in renewable energy, says Christian Rynning-Tønnesen.
Statkraft's performance improvement programme is progressing according to plan. The aim is to increase competitiveness and reduce costs by NOK 0.8 billion annually, measured against the actual costs for 2015. The majority of savings are planned to be realised in 2017 and the remainder in 2018.
The revised strategy underpins Statkraft's position as a leading company in renewable energy. Responsible and effective operations have first priority in all markets. Refurbishment of Statkraft's Nordic hydropower plants will continue to be prioritised. Statkraft will broaden the technology scope to include onshore wind- and solar power, in addition to hydropower, in selected international markets. Furthermore, Statkraft will strengthen the focus on business development in Norway in order to explore new opportunities arising from the energy transition.
The Board of Directors of Statkraft AS has approved the final 2016 financial statements for the Statkraft AS Group. For financial information, please see the interim report for fourth quarter and annual results for 2016 for Statkraft AS. The Annual Report and the Report from the Board of Directors for 2016 will be disclosed 2 March 2017.
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Statkraft is a leading company in hydropower internationally and Europe's largest generator of renewable energy. The Group produces hydropower, wind power, gas-fired power and district heating and is a global player in energy market operations. Statkraft has 3800 employees in more than 20 countries.This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.