Norway: Offshore Wind Makes Positive Contribution to Statkraft’s Q2 Results

In the second quarter of 2013, Statkraft achieved an underlying1 operating profit before depreciation (EBITDA) of NOK 2555 million, an improvement of NOK 190 million compared with the corresponding quarter in 2012. Unrealised currency effects resulted in a net loss of NOK 908 million, compared with a net profit of NOK 2443 million in the second quarter of 2012.

“Higher power prices in the Nordic region offset lower production and generated a good operating result in the second quarter. The quarter includes new power production from Sheringham Shoal offshore wind farm in the UK. Offshore wind power is a strategic focus area for Statkraft, and it is gratifying to see this production make a positive contribution to the result,” says President and CEO Christian Rynning-Tønnesen.

A weakening of the NOK and other currency fluctuations in the second quarter of 2013 had major negative effects on the result, while the corresponding period in 2012 was buoyed by positive currency effects. The negative net result is offset by positive currency effects, strengthening equity by NOK 3.1 billion.

The average Nordic power price was 36 per cent higher than in the same quarter in 2012. The Group’s power production was 10.9 TWh in the quarter. This was a decline of 27 per cent com-pared with the second quarter of 2012, which was a quarter with relatively high production.

During the quarter, Statkraft and Norfund signed a Heads of Agreement concerning future own-ership structures and cooperation within renewable energy, with particular focus on hydropower in emerging markets. Statkraft will own 67 per cent and Norfund 33 per cent of SN Power’s existing portfolio in South Asia and South America. SN Power’s portfolio will consist of SN Power’s current portfolio in Southeast Asia and Agua Imara’s portfolio in Africa and Central America. Statkraft and Norfund will own about 40 per cent each, and the power companies BKK and TrønderEnergi will be invited to participate as owners.

The share purchase agreement with the Austrian company EVN was concluded, and Statkraft now wholly owns Devoll Hydropower Sh.A., a hydropower project developer in Albania. The final investment decision for two power plants has been made.

“Our ambition is to become a leading international company in pure energy. Statkraft’s interna-tional investments in renewable energy make an increasing contribution to the Group’s result. We have achieved an annual return from our international business of about 10 per cent since the mid-1990s,  an achievement we are very pleased with,” says Rynning-Tønnesen.

The leased power plants Sauda I-IV, Svelgen I and II as well as Tysso II were transferred from Statkraft SF to Statkraft AS. The power plants have a total installed capacity of 620 MW. The transfer will have no consequences for the lease agreements, the lessees or the municipalities in which the power plants are located. The transaction has a value of about NOK 3.5 billion.

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Press release, August 15, 2013; Image: Scira