Statkraft AS: Results for the fourth quarter and year end 2022
Volatile markets caused by the energy crisis and war in Ukraine continue to cause a challenging situation for people and businesses across Europe. Statkraft achieved record revenues and results in both the fourth quarter and the full year 2022, driven by high prices, stable operations, successful energy management and excellent market operations.
“High power prices and solid value creation from Statkraft’s market operations contributed to a very strong 2022 result. Dividend to our owner is proposed at record 17.2 billion kroner. We are executing our ambitious green growth strategy to develop much needed renewable energy in Norway and internationally”, says Statkraft CEO, Christian Rynning-Tønnesen.
Statkraft had solid cash positions at the end of the fourth quarter to cover market volatility and large tax and dividend payments due in 2023.
In 2022, Statkraft increased its strategic ambition to grow the company’s renewable energy generation by 50 percent to 100 TWh by 2030. The majority of new investments will be within hydropower, onshore wind and solar in Norway and in Europe. Statkraft plans to start five major capacity upgrade projects in Norway by 2030 to balance the increasing amounts of intermittent wind- and solar power generation.
“As Europe’s largest renewable energy producer, we are uniquely positioned and have a strong commitment to contribute to more renewable power and speeding up the energy transition in Norway and abroad. Our ambition is to complete one new renewable power plant every nine days from 2025, mainly solar and onshore wind farms”, says Rynning-Tønnesen.
Statkraft’s project pipeline continues to increase and Statkraft is on track to deliver on the target to develop 2500-3000 MW of capacity annually by 2025, increasing to 4000 MW every year by 2030.
The average Nordic system price was 135 EUR/MWh compared with 96 EUR/MWh in the same quarter in 2021. Total power generation was 15.4 TWh, 3.1 TWh lower than the fourth quarter generation the previous year.
The underlying EBIT was NOK 23.7 billion, an increase of NOK 14.4 billion compared with the fourth quarter of 2021, despite lower power generation. The increase was driven by the significant increase in Nordic power prices and positive contribution from hedging of Nordic and European assets, as well as strong results from trading and origination activities and improved results from the dynamic asset management portfolio (DAMP).
Net profit was NOK 14.5 billion, an increase of NOK 10.7 billion from the same quarter in 2021.
Cash flow from operating activities in the quarter was solid at NOK 12.5 billion. Statkraft has a strong financial position, giving ample room for large new investments within renewable energy.
Important events in the quarter:
Statkraft entered into three long-term power contracts with a total volume of 3.8 TWh
First mover on fixed-price contracts in Norway to supply retailers serving the business segment. As per the fourth quarter contracted volume was 0.6 TWh
Regulatory changes in Norway were enacted, leading to an increase of NOK 2.8 billion in resource-rent tax expense and NOK 1.7 billion in regulatory fees (“høyprisbidrag”)
An impairment of NOK 0.7 billion was recognised on the Norwegian wind assets reflecting the impact from the new resource-rent tax for onshore wind that is expected to be effective from 1 January 2023
The merger between Agder Energi and Glitre Energi was completed, resulting in a non-cash gain of NOK 4.2 billion
The Taghart wind farm (23 MW) in Ireland reached full operation and was divested with a gain of NOK 81 million
Commercial operation started for 5 of 91 wind turbines in the Brazilian Ventos de Santa Eugenia wind complex (28 MW)
Two wind and solar projects in Peru with a planned capacity of up to 630 MW were acquired.
Full year 2022
Statkraft's generation reached 60.2 TWh, down 13.9 per cent from 2021. The average Nordic system price was 193 EUR/MWh, an increase of 118 EUR/MWh year-on-year. The underlying EBIT ended at NOK 54.4 billion, compared with NOK 26.8 billion in 2021. Net profit was NOK 28.6 billion (NOK 16.1 billion).
The proposed dividend amounts to NOK 17.2 billion.
The annual report for Statkraft AS Group for 2022 has been approved by the Board of Directors of Statkraft AS.
Note: Statkraft does not publish a separate external report for the fourth quarter as the annual report is disclosed together with this stock exchange notice. Selected statements for the fourth quarter are attached as an appendix.