Statkraft AS: Result for the third quarter 2018
Strong quarter and strengthened position
(Oslo, 25 October 2018) Statkraft recorded an underlying EBIT amounting to NOK 2679 million in the third quarter of 2018. This was an increase of NOK 1243 million from the corresponding period last year. The increase was driven by higher Nordic power prices, partly offset by negative effects from energy contracts. The quarterly net profit ended at NOK 1265 million.
The average Nordic system price in the quarter was 50.5 EUR/MWh, an increase of 77 per cent from the third quarter in 2017. Total generation was 13.1 TWh in the quarter, a reduction of 0.4 TWh.
- Statkraft had strong underlying result and cash flow from operations. This provides Statkraft with a robust foundation for the planned growth in renewable energy, says CEO Christian Rynning-Tønnesen.
A shareholding of 49% in Istad and a minor shareholding in BKK were divested. This led to a gain of NOK 271 million recognised in the third quarter.
The performance improvement programme is on track with approximately NOK 540 million in realised cost reductions so far. The target is to strengthen performance and reduce annual costs by NOK 800 million.
Statkraft entered into a 10 year power contract with Ferroglobe Mangan starting in 2021. The contract has a total volume of 4.4 TWh and reaffirms Statkraft's position as a competitive supplier to the industry in Norway.
A 100 MW hydropower construction project in Himachal Pradesh in India was acquired in the third quarter. The power plant is expected to come into operation in 2021.
Statkraft acquired a 1550 MW wind development portfolio in Ireland and UK in October. Following the acquistion it has been decided to construct the Kilathmoy wind farm (23 MW) in south-west Ireland.
- The acquisitions of hydro and wind projects fit well into Statkraft's growth strategy and strengthen our position as a leading developer of renewable energy, says Rynning-Tønnesen.
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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 3500 employees in 17 countries.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.