Norway: Statkraft Reports Q2 Operating Loss in Wind Sector

The second quarter of 2012 was characterised by low electricity prices in the Nordic region, but a significant portfolio of long-term power contracts and high production still ensured that the Group achieved satisfactory results. Underlying EBITDA and the pre-tax result were higher than in the same period last year.

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.

Wind power

All the turbines have been installed in the Sheringham Shoal offshore wind power project (317 MW), and about half the turbines are producing electricity to the main grid. The wind farm is scheduled for completion in the third quarter.

Three onshore wind farms are under construction. Stamåsen in Sweden is scheduled for completion in the fourth quarter 2012, while Baillie in the UK and Mörttjärnberget in Sweden are scheduled for completion in the first and fourth quarter of 2013, respectively.

Statkraft Agder Energi Vind was granted a licence for the Geitfjellet (170 MW) and Svarthammaren (150 MW) wind farms by the Norwegian Water Resources and Energy Directorate. The Ministry of Petroleum and Energy has refused a licence for Moifjellet wind farm following an appeal process.

Financial performance

Operating revenues were down as a result of significantly lower power prices.

EBITDA ( NOK -36 million) and the operating profit (NOK -69 million) were negative as a result of significantly lower power prices and costs related to higher project activity levels. EBITDA was positive with NOK 13 million from wind farms in operation.

Improvement in share of profit from associated companies and joint ventures (NOK 9 million) is due to parts of the Sheringham Shoal offshore wind farm starting production in the second quarter of 2012.

Investments

The investments in increased capacity (NOK 325 million) relate to the onshore wind farms under construction.

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Offshore WIND staff, August 22, 2012; Image: Scira