Statkraft AS: Result for the third quarter 2017
(Oslo, 26 October 2017) Statkraft recorded an underlying EBITDA of NOK1413 million in the third quarter of 2017. This was a decrease of NOK 181 million compared with the corresponding period in 2016. The quarterly net profit amounts to NOK 1783 million, an increase of NOK 3199 million from the same quarter in 2016. The result is characterised by strong underlying operations, impairments and gains from transactions.
The average Nordic system price in the quarter was 28.5 EUR/MWh, an increase of 13 per cent compared with the price level experienced in the same period in 2016. Statkraft's total production was 13.5 TWh, a slight increase from the third quarter in 2016.
- Statkraft has sold its 50 per cent share in SN Power and acquired the remaining 18.1 per cent shares in Statkraft IH Invest, which is the holding company for assets in South America, India and Nepal. The transaction is in line with the strategy to build stronger positions in fewer markets, says CEO Christian Rynning-Tønnesen.
Statkraft's long term price expectations for certain markets have seen a decline mainly due to lower technology costs for wind and solar power. This is very positive for the competitiveness for new renewables, but has also led to impairments of existing assets.
In total, NOK 1367 million of impairments were recognised in consolidated operations and NOK 1187 million in joint ventures. The negative effect of the impairments was offset by gains amounting to NOK 2178 million, stemming primarily from the sale of shares in SN Power.
Approximately NOK 220 million has so far been achieved under the performance improvement programme. The target is to strengthen performance and reduce annual costs by NOK 800 million.
Statkraft inaugurated the Ringedalen hydropower plant in Norway. It has an installed capacity of 23 MW and will generate around 60 GWh renewable energy annually.
In October, Statkraft sold its 50 per cent share in the offshore wind project Triton Knoll to innogy. The financial effects will be recognized in the fourth quarter. The transaction is in accordance with Statkraft's strategy to exit offshore wind to strengthen the financial solidity.
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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, solar power, gas-fired power and supplies district heating. Statkraft is a global company in energy market operations. Statkraft has 3800 employees in 16 countries.This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.