Statkraft earned 6.8 billion after tax – E24

The power giant’s results fell in the first quarter following lower electricity prices.

Statkraft presents the results for the first quarter on Tuesday.

• The quarterly report shows net operating income of NOK 19.6 billion, down from NOK 23.5 billion in the first quarter of last year.
• Underlying operating profit was NOK 13.5 billion in the quarter, down from NOK 17.5 billion in the same period last year.
• Profit after tax fell to NOK 6.8 billion from NOK 10.2 billion in the first quarter of last year.

The energy giant refers to the results as strong, even though they weakened from the previous year. Last year, market conditions were extraordinary as a result of the energy crisis in Europe, writes Statkraft.

Lower prices

– I am satisfied with the strong results despite much lower electricity prices in the first quarter, says CEO Birgitte Ringstad Vartdal in a press release.

In April, Vartdal took over as CEO from Christian Rynning-Tønnesen.

Statkraft points out that electricity prices have fallen following a drop in gas prices, a mild winter and lower demand.

In the Nordics, the electricity price was down 31 per cent in the first quarter from the same period last year, while the price was down 42 per cent in Europe and Germany in the same period, writes Statkraft.

Statkraft’s production was higher in the quarter than in the same period last year, and also higher than normal, the company states. It was driven by hydropower production in Norway and Brazil.

Statkraft produced 19.4 terawatt hours of power in the first quarter, which was 1.9 terawatt hours more than in the first quarter last year.

Plans record-high investments

Statkraft invested NOK four billion in the quarter.

Of this, NOK 2.6 billion went to new production capacity, network services and battery projects. The company spent 600 million on maintenance investments, mostly in Nordic hydropower.

The investment level for 2024 is planned to be NOK 32 billion, which is a record high, according to Statkraft.

The power giant points out that market conditions have changed. Prices have fallen and technology costs have risen, while increased capital costs affect the profitability of projects and access to capital.

– Although the costs are higher and the situation has become more challenging, the green energy transition is moving faster, driven by continued growth in the demand for more renewable energy, says Vartdal.

– The opportunities to deliver profitable projects are still present, she says.