Higher Q3 op profits pave way for Statkraft's renewables expansion

Andershaw wind farm. Photo by: Statkraft (www.statkraft.com).

October 26 (Renewables Now) - Norwegian state-owned utility Statkraft AS on Thursday booked a third-quarter operating profit of NOK 2.04 billion (USD 244m/EUR 215m), against a loss of NOK 192 million a year back, and said this gives it a "robust foundation" for its planned growth in renewable energy.

The company, which recently bought the Irish and UK onshore wind development operations of Element Power, including roughly 1,550 MW of projects, intends to spend about NOK 10 billion a year on renewables in the period 2019-2025. Apart from planning large upgrades of Nordic hydropower capacity, it targets reaching 6,000 MW of onshore wind and 2,000 MW of solar until 2025 as part of the expansion scheme unveiled in September.

Statkraft closed the July-September quarter with a net profit of NOK 1.27 billion, down from NOK 1.78 billion a year earlier. Its underlying earnings before interest and tax (EBIT) rose to NOK 2.68 billion from NOK 1.44 billion, mainly thanks to the higher power prices in the Nordic regions.

In the wind business, focusing on wind projects in the UK, Norway and Sweden, Statkraft registered an EBIT of NOK 99 million, returning to the black from a NOK-287-million loss. Net operating revenues from the segment jumped to NOK 310 million from NOK 121 million.

More details about Statkraft’s Q3 performance are available in the table below.

Figures in NOK million Q3 2018 Q3 2017
EBITDA, underlying  3,559  2,358
EBIT, underlying  2,679 1,437
EBIT (loss), booked  2,040 (192)
Net profit (loss) 1,265 1,783
Production, volume sold (TWh) 13.1 13.5

Total generation in the third quarter came at 13.1 TWh, down from 13.5 TWh in the year-ago period, due to a drop in gas-fired power production and a 1.6% decline in hydropower generation to 12 TWh. The output of Statkraft’s wind farms increased slightly from 0.5 TWh to 0.6 TWh.

(NOK 1.0 = USD0.120/EUR 0.105)

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Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.

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