Solid operating profit but write-downs
14.02.2013 08:00 | pressrelease
In the fourth quarter of 2012, Statkraft achieved an underlying1 operating profit before depreciation (EBITDA) of NOK 3416 million, compared with NOK 3028 million in the corresponding quarter in 2011. The net loss amounted to NOK 1840 million, compared with a loss of NOK 673 million in the fourth quarter of 2011.
"Increased production from Nordic hydropower, market activities and high contract coverage secured a good operating result for Statkraft in the fourth quarter of 2012. However, the result is characterised by write-downs, particularly in connection with the market situation for European gas power,"says President and CEO Christian Rynning-Tønnesen.
High gas prices, low coal and carbon prices resulting in high coal power production, high production of renewable energy and flat demand trends for power combine to create challenges for European gas power. Statkraft has accepted the consequences of the situation by writing down the value of the company's German gas power plants by about NOK 2 billion. In addition, an unrealised loss of NOK 2 billion for the shareholding in German power company E.ON SE was recognised in the fourth quarter.
Challenges in connection with grid access and power markets have resulted in a write-down of NOK 460 million for hydropower in India in the fourth quarter.
"Statkraft's long-term international investments within renewable energy make an overall positive contribution to operations in the quarter. Capacity in emerging economies is being developed through the shareholding in SN Power. The overall value of the portfolio has had a positive development in recent years, driven primarily by results from the activities in the Philippines and Peru," says Christian Rynning-Tønnesen.
For the Nordic market, the quarter was characterised by low precipitation, low temperatures and high production. The average power price was 9 per cent higher than in the same quarter in the preceding year. Reservoir water levels were normal at year-end. The Group's overall power production rose by 4 per cent to 16.3 TWh compared with the same quarter in 2011.
For the year in total, underlying EBITDA ended at NOK 11 060 million, compared with NOK 10 851 million in 2011. The net profit amounted to NOK 4671 million, compared with NOK 40 million in the preceding year.
Accumulated production in 2012 was 60.0 TWh, the highest ever and 17 per cent higher than in 2011. The Group's overall hydropower production in 2012 increased by 25 per cent compared with 2011, while Nordic power prices were on average 34 per cent lower than in the preceding year. Increased hydropower production, high contract coverage and good results from the market activities generated an operating result (EBITDA) that was up 2 per cent from 2011. Unrealised currency gains lifted the annual result.
1Adjusted 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 3500 employees in more than 20 countries.
Disclosure of this information is required pursuant to Section 5-12 of the Securities Trading Act
|Statkraft AS Q4/2012 - Interim Report|
|Statkraft AS Q4/2012 - Key figures||.XLS|
|Statkraft AS Q4/2012 - presentation|