Acceptable result in spite of lower prices

18.02.2010 08.00 | pressrelease

(Oslo, 18 February 2010) Lower power prices and reduced production in Norway resulted in Statkraft's underlying (1) operating profit for 2009 falling to NOK 9947 million (NOK 12 029 million) (2), and to NOK 3770 million in the fourth quarter (NOK 4072 million). The underlying profit before tax amounted to NOK 10 654 million (NOK 11 960 million), and NOK 3986 million in the fourth quarter (NOK 3541 million).

"2009 was characterised by a substantial drop in power prices, driven by the turbulence in the world economy. Moreover, Statkraft chose to adapt to the market by producing less in Norway than in 2008, when power prices and our results reached record levels. In light of this, the result for 2009 is acceptable," says President and CEO Bård Mikkelsen. "We also had a very high activity level in the organisation, partly driven by the integration of new assets. At the same time, several projects moved decisively towards realisation. This secures a solid basis for the Group to grow further, where the investment level will depend on the Norwegian state's willingness to strengthen Statkraft's equity and change its dividend policy," says Mikkelsen.

On an annual basis, the average Nordic system price fell by 22 per cent to 35.0 EUR/MWh (44.7). The average spot price in the German market (EEX) fell by 41 per cent to 38.9 EUR/MWh (65.8). The reduction is mainly due to weaker demand from industry and lower commodity prices on the Continent. Prices rose towards the end of the fourth quarter, driven by cold weather and higher fuel prices. However, the average prices for the fourth quarter ended up lower than for the same period last year, at 36.6 EUR/MWh (50.8) in the Nordic region, and 38.7 EUR/MWh (68.0) in Germany.

The incorporation of new activities from the asset swap with E.ON AG, as well as the consolidation of SN Power as a subsidiary, resulted in an increase in gross operating revenues to NOK 25 675 million (NOK 25 061 million). However, the drop in power prices, lower production and an increased cost base resulted in lower operating profit. The underlying profit after tax was NOK 5746 million (NOK 8097 million), and NOK 2187 million (NOK 2918 million) in the fourth quarter.

The Group produced 17.8 TWh in the fourth quarter (15.2), and 56.9 TWh over the course of the year (53.4). Norwegian hydropower production was significantly lower as a result of lower power prices and reduced demand, while new assets resulted in an increase in production. Wind power production was on a par with 2008, while the gas-based power production increased somewhat.

The reported accounts are impacted by substantial unrealised changes in value as well as non-recurring items, and the unadjusted annual profit for 2009 was NOK 7716 million after tax (NOK 33 262 million), and NOK 1777 million in the fourth quarter (NOK 28 663 million).

Key figures

NOK million20092008Changes
Gross revenues 25 675 25 061 +2%
Underlying EBITDA 12 582 13 888 -9%
Underlying EBIT 9 947 12 029 -17%
Underlying profit before tax 10 654 11 960 -11%
Underlying profit after tax 5 746 8 097 -29%
Cash flow 7 781 9 880 -21%
Net investments 4 678 3 046 +54%
Interest-bearing liabilities 45 660 40 791 +12%
Price Nord Pool (EUR/MWh) 35.0 44.7 -22%
Price EEX (EUR/MWh) 38.9 65.8 -41%
Production (TWh) 56.9 53.4 +7%

Statkraft is Europe's largest renewable energy company. The group develops and generates hydropower, wind power, gas power and district heating, and is a major player on the European power exchanges. Statkraft also develops marine energy, osmotic power, solar power and other innovative energy solutions. In 2009 Statkraft posted gross operating revenues of EUR 2.9 billion. The group employs 3,400 staff in more than 20 countries.

(1) Adjusted for unrealized changes in value and significant non-recurring items.
(2) Figures in parentheses show comparable figures for the corresponding period in 2008.


Title Size Type
Q4/09 Presentation 1.3MB .PDF
Q409 Statkraft AS Interim Report 1MB .PDF