Norway: Statnett Reports NOK 187 Million Profit in Q2

The Statnett Group reports profit after tax of NOK 187 million in the second quarter of 2012. The corresponding figure for the same period in 2011 was NOK 126 million. Profit after tax for the first half of 2012 was NOK 452 million, compared to NOK 520 million for the first half of 2011. Profit after tax was reduced in the first half of 2012 due to downward adjustment of tariffs for 2012. The reduction was partly offset by higher congestion revenues in the first half of 2012.

In the second quarter of 2012 total operating revenues for the Statnett Group amounted to NOK 1 238 million, compared to NOK 1 189 million for the same period in 2011. The Group’s operating revenues for the first half of 2012 amounted to NOK 2 633 million. The corresponding figure for 2011 was NOK 2 841 million. The reduction in operating revenues for the first half of 2012 was due to downward adjustment of tariffs for 2012, somewhat offset by an increase in congestion revenues in 2012.

Statnett’s revenues are regulated by the Norwegian water resources and energy directorate (NVE) which each year calculates the company’s revenue cap based on firm predefined criteria. Revenues exceeding the revenue cap will be returned to consumers over time through a reduction in tariffs. The higher revenue for the first half of 2012 was NOK 390 million, compared to NOK 490 million for the same period in 2011. Accumulated higher revenue was NOK 3 031 million at the end of first half of 2012.

In the first half of 2012, the Group’s profit after tax adjusted for changes in higher/lower revenue after tax and calculated interest cost on higher revenue was NOK 154 million.

In the first half of 2012, the Statnett Group invested NOK 1 257 million compared to NOK 1 399 million for the same period in 2011.

Outlook

Statnett’s Grid Development Plan 2011 forms the foundation of the next generation central grid, which will be completed by 2030. Statnett’s activities are dominated by the substantial number of investment projects, both planned and ongoing.

Statnett will develop a significantly larger project volume, and the period will to a large extent be a structuring and experience phase for the organisation, by, among other measures, adopting new contract models to increase Statnett’s scalability and construction capability.

The investment program aims to maintain the future security of supply, contribute to value creation and pave the way for better environmental solutions in Norway.

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Offshore WIND staff, August 24, 2012; Image: Statnett