Result for the third quarter of 2013: Solid operating profit
07.11.2013 08.00 | pressrelease
(Oslo, 7 November 2013) In the third quarter of 2013, Statkraft achieved an underlying1 operating profit before depreciation (EBITDA) of NOK 1867 million, an improvement of NOK 614 million compared with the corresponding quarter in 2012. Unrealised currency effects resulted in a net loss of NOK 1681 million, compared with a profit of NOK 638 million in the third quarter of 2012.
"Higher power prices contributed to a good operating profit, and the underlying EBITDA was 49 per cent higher than in the third quarter of last year. The weaker NOK yielded a negative result, but this is fully offset by other currency effects which strengthen equity," says President and CEO Christian Rynning-Tønnesen.
A further weakening of the NOK and other currency fluctuations resulted in major negative ef-fects for the result also in the third quarter, while the corresponding period in 2012 was buoyed by positive currency effects. The loss after tax was therefore NOK 1681 million, a decline of NOK 2319 million. The currency effects are mainly unrealised, and are fully offset by translation effects which strengthen equity. So far in 2013, the equity has been strengthened by NOK 4933 million.
The average Nordic power price was 72 per cent higher than in the same quarter in 2012. The increase was primarily driven by less precipitation and lower reservoir water levels. The Group's power production was 11.2 TWh in the quarter, a decline of 2 per cent compared with the third quarter of 2012.
The project activity level is in accordance with the Group's strategy, with a number of large development and rehabilitation projects within renewable energy in Norway and internationally. A new district heating plant in Ås in Norway came online, and the rehabilitation of a hydropower plant in the Philippines was completed. Total investments in the quarter amounted to NOK 2.2 billion.
"Statkraft's position in wind power is strengthened by new production capacity and new licens-es. Two new wind farms came online in the quarter, while another five wind farms are under development in Sweden and the UK. The Group received several licences for wind farms in Central Norway," says Christian Rynning-Tønnesen.
Statkraft entered into an agreement to sell the power plants Svelgen 1 and 2 to Svelgen Kraft, while buying Sogn og Fjordane Energiverk's 35 per cent shareholding in Leirdøla power plant. The transaction will help contribute to optimise power production in the companies.
In emerging markets, the growth in demand is expected to continue. The letter of intent recently signed by Statkraft and Norfund aims to restructure the companies' international cooperation within renewable energy. The Statkraft Group's overall expertise within power development, operation and market can thereby be utilised even better.
1 Adjusted for unrealised changes in value and significant non-recurring items
Statkraft is Europe's largest producer of renewable energy and the leading power company in Norway.
The Group owns, produces and develops hydropower, wind power, gas-fired power and district heating. Statkraft is a major player in European power trading and has 3600 employees in more than 20 countries.
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