Strong operating result in the second quarter
(Oslo, 22 July 2021) Statkraft recorded the highest EBIT in a second quarter to date. The strong results have strengthened Statkraft’s financial capacity and ability to deliver on the growth strategy.
The underlying EBIT was NOK 5.6 billion in the quarter. Net profit was NOK 2.4 billion, an increase of NOK 1.9 billion compared with the result in the second quarter last year.
“The recovery of Nordic power prices and high contribution from Statkraft’s market activities has led to a strong operating result in the second quarter”, says CEO Christian Rynning-Tønnesen.
The average Nordic system price was 41.9 EUR/MWh compared with 5.6 EUR/MWh in the same quarter in 2020. Total power generation was 15.5 TWh, slightly lower than the second quarter generation last year.
Cash flow from operating activities in the quarter was solid at NOK 6 billion. Net interest-bearing debt was NOK 14 billion, giving room for significant new investments within renewable energy.
For the first half year of 2021, Statkraft reported a record-high underlying EBIT of NOK 12.8 billion, an increase of NOK 8.9 billion compared with the same period in 2020. The main drivers for the increase were significantly higher Nordic power prices and solid contribution from market activities. The net profit year to date was NOK 7.2 billion.
“The strong results have a positive impact on our investment capacity, and together with a prolonged dividend policy this provides us with a solid foundation for further growth”, says CEO Rynning-Tønnesen.
Statkraft has decided to construct four new solar plants in Cadiz, Spain. The plants will have a total capacity of 234 MWp. Statkraft also started the construction of Ballymacarney which will be Ireland’s largest solar farm. The solar plants in Spain and Ireland are part of Statkraft’s portfolio of projects that are constructed with the intention to divest to external investors.
Increased power prices and higher expectations of future power prices have affected the investment capacity positively. Statkraft is planning net investments up to 13 billion annually in renewable energy in the coming years. The pace and total amount of investments will depend on market opportunities and market development and will be adapted to the financial capacity and rating target.
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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 4600 employees in 18 countries.