Statkraft AS: Result for the fourth quarter of 2012
Solid operating profit but write-downs
(Oslo, 14 February 2013) In the fourth quarter of 2012, Statkraft achieved an
underlying(1) operating profit before depreciation (EBITDA) of NOK 3416 million,
compared with NOK 3028 million in the corresponding quarter in 2011. The net
loss amounted to NOK 1840 million, compared with a loss of NOK 673 million in
the fourth quarter of 2011.
"Increased production from Nordic hydropower, market activities and high
contract coverage secured a good operating result for Statkraft in the fourth
quarter of 2012. However, the result is characterised by write-downs,
particularly in connection with the market situation for European gas power,"
says President and CEO Christian Rynning-TÃ¸nnesen.
High gas prices, low coal and carbon prices resulting in high coal power
production, high production of renewable energy and flat demand trends for power
combine to create challenges for European gas power. Statkraft has accepted the
consequences of the situation by writing down the value of the company's German
gas power plants by about NOK 2 billion. In addition, an unrealised loss of NOK
2 billion for the shareholding in German power company E.ON SE was recognised in
the fourth quarter.
Challenges in connection with grid access and power markets have resulted in a
write-down of NOK 460 million for hydropower in India in the fourth quarter.
"Statkraft's long-term international investments within renewable energy make an
overall positive contribution to operations in the quarter. Capacity in emerging
economies is being developed through the shareholding in SN Power. The overall
value of the portfolio has had a positive development in recent years, driven
primarily by results from the activities in the Philippines and Peru," says
For the Nordic market, the quarter was characterised by low precipitation, low
temperatures and high production. The average power price was 9 per cent higher
than in the same quarter in the preceding year. Reservoir water levels were
normal at year-end. The Group's overall power production rose by 4 per cent to
16.3 TWh compared with the same quarter in 2011.
For the year in total, underlying EBITDA ended at NOK 11 060 million, compared
with NOK 10 851 million in 2011. The net profit amounted to NOK 4671 million,
compared with NOK 40 million in the preceding year.
Accumulated production in 2012 was 60.0 TWh, the highest ever and 17 per cent
higher than in 2011. The Group's overall hydropower production in 2012 increased
by 25 per cent compared with 2011, while Nordic power prices were on average 34
per cent lower than in the preceding year. Increased hydropower production, high
contract coverage and good results from the market activities generated an
operating result (EBITDA) that was up 2 per cent from 2011. Unrealised currency
gains lifted the annual result.
(1 )Adjusted for unrealised changes in value and significant non-recurring items
Statkraft is Europe's leader in renewable energy. The Group develops and
produces hydropower, wind power, gas power and district heating, and is a major
player on the European energy exchanges. Statkraft has 3500 employees in more
than 20 countries.
For additional information:
VP Investor Relations Yngve FrÃ¸shaug, tel.: +47 24 06 78 76 /+47Â 900 23 021
Press spokesperson Knut Fjerdingstad, tel.: +47 24 06 71 61 /+47 901 86Â 310
SVP Corporate Communications Bente E. Engesland, tel.: +47 24 06 75 01 /+47
911 59 952
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
Statkraft AS Q42012 key figures:
Statkraft AS Q42012 Interim Report:
Statkraft AS Q42012 presentation:
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Source: Statkraft via Thomson Reuters ONE