Statkraft AS: Result for the fourth quarter and the year 2018
SOLID QUARTER AND STRONG PERFORMANCE FOR THE YEAR
(Oslo, 14 February 2019) Statkraft recorded an underlying EBIT amounting to NOK 4884 million in the fourth quarter of 2018. This was an increase of NOK 1536 million from the same period last year. The increase was mainly driven by higher Nordic power prices. The net profit ended at NOK 1572 million for the quarter and NOK 13.4 billion for the year 2018.
The average Nordic system price in the quarter was 47.7 EUR/MWh, an increase of 56 per cent from the fourth quarter in 2017. Total generation was 16.1 TWh in the quarter, a reduction of 1.2 TWh.
For the year 2018, Statkraft's generation reached 61.7 TWh, down 1 per cent from 2017. The average system price at Nord Pool was 44.0 EUR/MWh, an increase of 49 per cent year-on-year. The underlying EBIT ended at a solid NOK 15 billion, compared with NOK 10.8 billion in 2017. Profit before tax was NOK 20.6 billion and net profit ended at NOK 13.4 billion. The result for 2018 was positively influenced by significant gains from transactions.
Cash flow from operating activities reached NOK 3680 million in the quarter and NOK 15.3 billion for the year.
- High Nordic power prices, effective operations and large gains from transactions were the main drivers behind the strong net profit, says CEO Christian Rynning-Tønnesen.
The Performance Improvement Programme will yield annual cost reductions amounting to NOK 800 million. Cost reductions amounting to around NOK 625 million have been achieved by the end of 2018 and further savings are expected through 2019 from completed initiatives.
Statkraft has entered into several agreements with industrial customers and invested further in renewable energy in the fourth quarter. Statkraft entered into two eight year power contracts with Norske Skog with a total delivery of 14 TWh. Statkraft also signed an agreement to sell power from six German community-owned wind farms exclusively to Mercedes-Benz Cars from 2021.This deal demonstrates a growing trend that industrial customers are interested in sourcing green energy to meet ambitious sustainability targets.
The construction of the 256 MW Roan wind farm is completed and is Norway's largest wind farm to date. Roan and the other five wind farms in the Fosen project portfolio will have an installed capacity of 1057 MW. Statkraft has aquired the Irish and UK wind development business of the Element Power Group with a project portfolio of 1550 MW. The investments will strengthen Statkraft's position as the leading renewable company in Europe.
In the quarter, Statkraft also acquired eight hydropower plants in Brazil with a total installed capacity of 132 MW. The acquisition increases the installed capacity in Brazil to around 450 MW and positions Statkraft for further growth in this market.
- Statkraft has demonstrated a strong value creation, contributing to the Norwegian society and to a green transition in the world. Our ambition is to maintain the position as the largest renewable company in Europe and to grow significantly in South America and India, says Rynning-Tønnesen.
Statkraft's strategy is to combine flexible hydropower with wind- and solar power to deliver reliable and renewable energy to the customers.
The financial statements for Statkraft AS Group for 2018 have been approved by the Board of Directors of Statkraft AS. The annual report will be disclosed 28 February 2019.
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Statkraft is a leading company in hydropower internationally and Europe's largest generator of renewable energy. The Group produces hydropower, wind power, solar power, gas-fired power and supplies district heating. Statkraft is a global company in energy market operations. Statkraft has 3600 employees in 15 countries.