Satisfactory second quarter result
22.08.2012 08:00 | pressrelease
In the second quarter of 2012, Statkraft achieved an underlying* operating profit before depreciation (EBITDA) of NOK 2324 million, compared with NOK 1822 million in the corresponding quarter in 2011. The profit after tax was NOK 2443 million, compared with a loss of NOK 514 million during the second quarter of 2011.
"The operating result shows that good contract coverage and high production more than compensated for lower spot prices. In addition unrealised currency gains and lower unrealised negative non-recurring items explain the improved result after tax compared with the second quarter of last year," says President and CEO Christian Rynning-Tønnesen.
Overall for the first six months of the year, the underlying EBITDA ended at NOK 6459 million, compared with NOK 6072 million in the corresponding period in 2011. The profit after tax was NOK 5873 million, compared with NOK 2295 million during the same quarter last year. In 2011, the result after tax was significantly impacted by unrealised changes in value and write-downs.
Market conditions in the second quarter were characterised by a lot of precipitation and high reservoir water levels in the Nordic region. Together with good availability of wind and solar power, combined with lower economic activity in Europe, this resulted in lower power prices. The Nordic power prices were on average 46 per cent lower than in the corresponding quarter in 2011 and the system price for the period ended at 28.4 EUR/MWh, compared with 52.2 EUR/MWh in 2011. The average spot price in the German market fell 24 per cent and ended at 40.5 EUR/MWh for the quarter, compared with 53.6 EUR/MWh in 2011.
The Group's power production was 14.9 TWh in the second quarter, an increase of 48 per cent compared with the second quarter of last year. The increase was largest in hydropower production, up 74 per cent from 2011, while gas-fired power production was very low.
"An increasing percentage of renewable energy in Europe, as well as growth in the need for energy outside Europe create unique business opportunities for Statkraft. The strategy entails a high project activity level in hydropower as well as onshore and offshore wind power," says Rynning-Tønnesen.
*Adjusted for unrealised changes in value and significant non-recurring items
Statkraft is Europe's leader in renewable energy. The Group develops and produces hydropower, wind power, gas power and district heating, and is a major player on the European energy exchanges. Statkraft has 3400 employees in more than 20 countries.
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