Statkraft establishes new business areas: Focus on increased profitability and environmentally friendly energy

13.01.2005 08.00 | pressrelease

(Oslo, 13 January 2005) - Statkraft's focus is to increase added value and the development of environmentally friendly energy production. To improve ourselves, we have now organised the company into three business areas, says Chief Executive Officer Bård Mikkelsen at Pareto's Energy Conference in Oslo today.

Mikkelsen stressed that Statkraft's strategy to become leading within environmentally friendly energy in Europe remains in place. - It is important to organise the Group so that at all times, our resources are utilised in the best possible way according to the goals we have set ourselves.

In conjunction with the reorganisation of Statkraft as a limited company with effect from 1 October 2004, work has been going on to define the main organisational structure of the Group in its new form. This task is now completed. Statkraft AS is to be organised as 3 business areas, Generation and markets, New energy and Regional.

Integral to the task of forming the new organisational structure, the Group has revised its strategy, and concludes: Further growth will be attained through acquisition and development of environmentally friendly production capacity, development of wind power and other types of renewable production capacity. Furthermore, Statkraft intends to develop its Norwegian ownership interests through supporting profitable regional development and by acquiring majority ownership interest in the companies in which Statkraft has invested. The long-term goal to achieve an A-rating remains unchanged.

Business area - Generation and Markets

This business area produces and sells power for delivery to Nord Pool, directly to industrial companies and other high volume electricity purchasers. The business area is among the largest in Europe within trading and origination of electricity, and energy-related products. This operation is conducted from Oslo, Stockholm, Düsseldorf and Amsterdam.

Through the new organisational structure, Statkraft gathers generation and market areas under a joint leadership. To ensure best possible added value, operations and maintenance must be carefully matched against market potential such as this is identified through fundamental analysis. By bringing together generation and market environments, total utilisation of physical and financial resources is improved. This strengthens Statkraft's business concept for upstream activities.

Business area - New Energy

The business area will develop and construct new, environmentally friendly energy sources in both Norway and Europe. In the future, the increased demand for electric power will be met partially through construction of gas power plants, wind parks, small hydro power stations and in the longer term through new technology. This business area is responsible for ongoing construction projects within hydro power and wind power in Norway. In addition, the area holds a broad portfolio of development projects for hydro power, wind power and gas fired power stations. The portfolio includes projects already holding concessions, as well as those in an earlier phase of development.

Increased focus on innovation and R&D will be decisive in ensuring that new technology can be commercialised in the future

Business area - Regional

This business area will comprise Statkraft's interests in Norway: Trondheim Energiverk (TEV), 100 per cent, Skagerak Energi, 66.6 per cent, Bergenshalvøens Kommunale Kraftselskap (BKK), 49.9 per cent and Agder Energi, 45.5 per cent. The regional power companies' activities include production and sale of electricity, transmission and end-user operations and some activities in related areas. The companies serve both corporate and private markets.

Statkraft supports a profitable regional development of these companies, at the same time as co-operation between the regional companies and Statkraft can result in efficiency gains. Statkraft intends to increase its interests in the partially-owned companies, either through acquisition, mergers or swap of business activities.

Group Executive Management in Statkraft AS

The Group executive management of Statkraft will comprise the following:

  • Bård Mikkelsen, President and Chief Executive Officer
  • Jørgen Kildahl, Executive Vice President - Generation and Markets
  • Ingelise Arntsen, Executive Vice President - New Energy
  • Jon Brandsar, Executive Vice President - Regional
  • Ragnvald Nærø, Executive Vice President - Communication, Human Resources, IT
  • Eli Skrøvset, Executive Vice President - Chief Financial Officer
  • Stein Dale, Executive Vice President - Strategy and Business development

Skrøvset and Dale join Group Management when Christian Rynning-Tønnesen, the current Chief Financial Officer, leaves to take on the position of Chief Financial Officer at Norske Skog.

Statkraft aims to be a leading European company in the field of environmentally friendly energy.
Formed by over 100 years of knowledge and investment, the group is well prepared for further growth and development, with a stated will for long term added value. Statkraft stands for sustainable development in both environmental and economic terms.Statkraft produces a total of 42 TWh per annum, making it the third-largest producer of electricity in the Nordic region and the second-largest producer of renewable energy in Europe.The group has approximately 2000 employees, Skagerak Energi and Trondheim Energiverk inclusive. Statkraft also owns interests in the Norwegian power companies BKK, Agder Energi and Fjordkraft, as well as Swedish Sydkraft.