Report from the Board of Directors

Statkraft achieved a good operating result in spite of substantially lower Nordic power prices than in 2013.

Sound operations and increased contributions from market activities largely offset lower power prices, and all segments contributed positively to the Group’s underlying EBITDA of NOK 12.1 billion. Substantial as well as negative currency effects under the financial items impacted the Group’s net profit, which amounted to NOK 3.9 billion.

Several major hydropower projects are ongoing in Norway,Southeast Europe and South America. Statkraft is also continuing its focus on wind power, and several wind farms were completed in 2014. Statkraft implemented a selldown in the UK wind farms in order to contribute toward financing new projects.

A unanimous Storting approved an equity injection and reduction in future dividends. Good results from operations and the new capital received from the owner, contributed to a strengthening in Statkraft’s equity of NOK 17 billion in 2014. Strengthened financing helps facilitate the realisation of Statkraft’s strategy for continued growth within renewable energy in Norway and internationally.