Statkraft posts EUR-245m 9-mo loss in 2015

Wind farm in Norway. Author: John Christian Fjellestad. License: Creative Commons, Attribution 2.0 Generic

Norwegian state-owned utility Statkraft AS reported a net loss of NOK 2.3 billion (USD 271m/EUR 245m) for the first nine months of 2015 due to lower power prices, negative currency effects and wind and hydro impairments.

The result compares to a net profit of NOK 7 billion in the same period of 2014.

The underlying earnings before interest, tax, depreciation and amortisation (EBITDA) were down 15% year-on-year to NOK 7.3 billion. Net operating revenues were low due to the lower Nordic power prices, deconsolidation of UK wind farms and lower contribution from market operations. These effects were partially offset by acquisitions in Chile and Brasil, higher revenues from end-user sales and district heating.

For the nine months under review, the utility booked NOK 13.76 billion in revenues, down from NOK 14.9 billion a year earlier. It said it had witnessed the lowest power prices in the Nordics in 15 years.

WIND DIVISION

Statkraft’s wind power plants in Sweden were written down by NOK 1.75 billion in the period as the company expects lower power and certificate prices in the coming years. The table below contains the results of the wind power division.

NOK million	Q3 2015	9-mo 2015	9-mo 2014
Revenues, underlying	99	434	805
EBITDA, underlying	-44	-3	325
Operating profit, underlying	-120	-249	-57
Investments in new capacity	854	2,200	2,279
Production, volume sold (TWh)	0.4	1.5	1.2

In June, Statkraft’s Board of Directors decided not to invest in the Fosen and Snillfjord onshore wind power projects in Norway, totalling 1 GW. Later, the company and partners initiated a study for an alternative onshore wind plan in the same area. The company said today there are still uncertainties in the project.

(NOK 10 = USD 1.180/EUR 1.067)

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