Lower power generation yielded reduced profit
19.05.2011 08.00 | pressrelease
(Oslo, 19 May 2011) A weaker resource situation and lower energy generation as a result of high production in 2010 yielded an underlying1 EBITDA of NOK 4249 million for Statkraft in the first quarter of 2011 - compared with NOK 5912 million in the corresponding quarter in 2010. Net profit amounted to NOK 2809 million, compared with NOK 4533 million in the first quarter of 2010.
Statkraft AS - first quarter 2011 financial results
"The quarterly result reflects that Statkraft reduced its power generation due to low water reservoir levels. During the last winter and at the end of 2010, Statkraft contributed with high production in a strained power market, while there was less inflow than normal to the water reservoirs. The result therefore illustrates good and sensible energy management over several periods," says President and CEO Christian Rynning-Tønnesen.
The Group's consolidated energy production for the first quarter was 14.9 TWh, compared with 18.3 TWh in the corresponding period in 2010. The reduction is due to lower than normal reservoir water levels. At the end of the quarter, the total water level in Nordic reservoirs was 45% of normal, according to NVE (Norwegian Water Resources and Energy Directorate). The reservoir levels were characterised as strained during the quarter, but early and intense snow melting resulted in an improvement in April. At the end of April, the Nordic reservoir water level was close to normal - 26% of the total reservoir capacity.
The decline in production was offset by higher power prices. In the first quarter, the average system price in the Nordic market was 66.2 EUR/MWh (59.8), while the average spot price on the German energy exchange EEX was 51.8 EUR/MWh (41.1).
Statkraft has entered into new long-term industrial power contracts during the quarter, with a total annual volume of about 1.3 TWh. Statkraft now delivers a volume of more than 20 TWh per year to Nordic power-intensive industry, about one-third of the Group's total annual power generation.
"Power-intensive industry is an important customer group for Statkraft, and the rising number of new industrial power agreements shows that we are able to fulfil our ambitions. It is important to arrive at competitive, commercial power agreements that provide predictability for both parties," says Rynning-Tønnesen.
Statkraft's gross operating revenues amounted to NOK 7553 million (NOK 10 507 million) in the first quarter. The reported accounts is affected by unrealised changes in value, and the fiscal EBITDA was NOK 5831 million (NOK 5922 million).
*Adjusted for unrealised changes in values and significant non-recurring items
Statkraft is Europe's leader in renewable energy. The Group develops and generates hydropower, wind power, gas power and district heating, and is a major player on the European energy exchanges. Statkraft has more than 3300 employees in more than 20 countries.