Statkraft AS: Result for the fourth quarter and the year 2017
(Oslo, 15 February 2018) Statkraft recorded an underlying EBITDA of NOK 4786 million in the fourth quarter of 2017. This was an increase of NOK 115 million compared with the corresponding period in 2016. The quarterly net profit ended at NOK 5317 million, an increase of NOK 4569 million from the same quarter in 2016. Solid underlying performance, gains from divestments of offshore wind assets and reversal of impairments led to the strong result.
The average Nordic system price in the quarter was 30.6 EUR/MWh, a decrease of 11 per cent compared with the price level experienced in the same period in 2016. Statkraft's total generation was 17.3 TWh, a decrease of nine per cent from a very high level in the fourth quarter in 2016.
- We are very satisfied with the strongest result since 2008, demonstrating high performance and successful divestments, says CEO Christian Rynning-Tønnesen.
Increased need for flexibility in the German market and improved outlook for future gas to power margin has led to a reversal of impairments of NOK 914 million for gas-fired power plants.
Statkraft divested its 40 per cent shareholding in the Sheringham Shoal offshore wind farm and its 50 per cent shareholding in the Triton Knoll offshore wind project. Recognised gains from these transactions were NOK 3061 million. In addition, Statkraft has signed an agreement to divest the 30 per cent shareholding in the Dudgeon offshore wind farm. Closing of the Dudgeon transaction is expected to take place in the first quarter of 2018. The transactions are in line with Statkraft's strategy to divest offshore wind assets.
- The sales of offshore wind assets combined with the new long term dividend model significantly strengthens our financial capacity. Together with the performance improvement programme, this gives a solid foundation for further growth in renewable energy, says Rynning-Tønnesen.
Statkraft is actively exploring new business within hydropower, wind power, solar power and other opportunities within renewable energy. Silva Green Fuel, a company owned by Statkraft and Södra, has decided to build a demonstration plant for advanced biofuel in Norway.
Statkraft has entered into a new long-term power contract with Eramet. The contract runs from 2021 to 2030 with a total volume of 8 TWh. The contract reaffirms Statkraft's position as a competitive supplier to Norwegian industry and will have a stabilising effect on Statkraft's revenues.
Financial statements for Statkraft AS Group for 2017 has been approved by the Board of Directors of Statkraft AS. Statkraft's generation reached 62.6 TWh in 2017, down 5 per cent from the record high level in 2016. The average system price at Nord Pool was 29.4 EUR/MWh, an increase of 9 per cent year-on-year. The underlying EBITDA ended at a solid NOK 14 432 million, compared to NOK 12 705 million in 2016. The result for 2017 was significantly influenced by gains from transactions. Profit before tax was NOK 15 693 million and net profit ended at NOK 11 732 million.
The annual report for 2017 will be disclosed 28 February 2018.
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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 3600 employees in 16 countries.This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.