Strong energy prices significantly improve Statkraft’s earnings

Strong energy prices significantly improve Statkraft's earnings

Historically high energy prices and high water production contributed to state-owned Statkraft’s best-ever operating result in the fourth quarter of last year.

Statkraft, Norway’s largest energy producer, presented its fourth-quarter results on Thursday, which showed a base operating profit of NOK 9.3 billion. This is an improvement of NOK 7.8 billion compared to the fourth quarter of 2020.

The massive improvements in earnings give a proposed dividend of NOK 10.2 billion for 2021. In 2020, profits are NOK 3.67 billion.

The crisis in the Norwegian and European energy market is not a supply crisis, but a price crisis. The market has worked and Statkraft has been able to efficiently manage its energy resources and create value, CEO Christian Renning Tonesen says.

Expect more growth

Profit after tax ended at NOK 3.9 billion, an improvement of NOK 0.2 billion compared to the same quarter of 2020.

– Statkraft delivered strong results last year, based on higher Nordic energy prices and higher Norwegian hydropower production. However, the exceptional situation of the market creates a demanding situation for consumers and families. This is not the situation we want, says CEO Christian Renning Tonsen.

The company’s annual report stated that losses from the market operations sector as a result of high energy prices and market volatility had a negative impact on operating profits.

We continued to implement our strategy throughout the year, entering 2022 with enhanced financial capacity and the ability to realize our growth ambitions and drive the energy transition forward, says Renning Tonesen.

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new investments

Statkraft is Norway’s largest energy producer. In a normal year, the company accounts for nearly half of the total electricity production on a hydropower basis. Statkraft is also a leading international hydropower company and the largest supplier of renewable energy in Europe. The group produces hydroelectric power, wind power, solar power, gas power, and provides district heating. Statkraft has 4,600 employees in 18 countries.

Statkraft had strong cash flow from operations of NOK 6.4 billion. Net interest-bearing debt is NOK 14.4 billion.

This allows for significant new investments in renewable energy, the report notes.

Another big energy producer, Agder Energi, presented annual accounts for 2021 Tuesday — the company in the fourth quarter alone generated more than twice as much pre-tax profit as in the previous three quarters combined. The average spot price in the Agder Energi price zone increased from 9.8 øre per kWh in 2020 to 76 last year.(Conditions)Copyright Dagens Næringsliv AS and/or our suppliers. We would like you to share our cases using a link that leads directly to our pages. All or part of the Content may not be copied or otherwise used with written permission or as permitted by law. For additional terms look here.

Hanisi Anenih

Hanisi Anenih

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