Statkraft AS: Result for the second quarter 2019
Quarterly result up on market activities and higher generation
(Oslo, 18 July 2019) Statkraft recorded an underlying EBIT amounting to NOK 2619 million in the second quarter of 2019. This was an increase of NOK 1190 million from the corresponding period last year. The increase was mainly driven by improved results from Market operations and higher generation.
The average Nordic system price in the quarter was 35.6 EUR/MWh, a decrease of 9 per cent compared with the same quarter in 2018. Total generation was 12.3 TWh in the quarter, an increase of 0.9 TWh.
The quarterly net profit ended at NOK 2123 million. This is an increase of NOK 1852 million.
For the first half year of 2019 Statkraft achieved an underlying EBIT of NOK 9049 million, an increase of NOK 1659 million compared with the same period in 2018.The main drivers for this improvement were higher contributions from trading, origination and market access activities in the segment Market operations. Net profit year to date reached NOK 6874 million.
- The operating profit for the first half year is the highest in the history of Statkraft, reflecting solid operations and strong contribution from our market activities, says CEO Christian Rynning-Tønnesen.
Long-term power contracts with the industry have a stabilising effect on Statkraft’s revenues. Over the last couple of years, Statkraft has entered into new and renegotiated long-term power contracts in Norway with a total volume of 55 TWh. Two of these power contracts were signed in the second quarter. The contract with Alcoa runs from 2020-26 with a total volume of 3.1 TWh and the contract with Borregaard runs from 2020-29 with a total volume of 1.75 TWh.
Statkraft has also signed an agreement with Audax Renovables in Spain with a total volume of 5.5 TWh over a period of 10.5 years. Renewable PPAs are an important part of Statkraft's strategy to develop market activities in Spain. The ambition is to be a leading provider of market solutions for renewable energy for large customers in all our markets and triple our volumes by 2025.
- The new long-term contracts in Norway and Spain confirm Statkraft’s position as a competitive supplier of renewable energy, says Rynning-Tønnesen.
In June, Statkraft decided to construct the 52 MW Los Lagos hydropower plant in Chile. Annual generation is estimated to 260 GWh. Completion of the hydropower plant is scheduled for the second quarter of 2022 and will strengthen Statkraft’s position in the Chilean market.
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Debt Capital Markets:
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This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
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.