Statkraft raises op profit in Q3, reduces hydro generation to store water

Image by Statkraft AS.

Norwegian state-owned utility Statkraft AS today said its underlying operating profit (EBIT) almost doubled year-over-year in the third quarter of 2022 to NOK 9 billion (USD 864m/EUR 868m).

Performance in the period was driven by high energy prices and the Market operations segment. It was achieved despite reduced hydropower production in Southern Norway as the company stored water for the winter. Total power generation declined 20% from the same quarter of 2021 to 12.2 TWh. Hydropower generation was 10.7 TWh, while wind generation was stable year-over-year at 0.8 TWh.

Statkraft, however, recorded a fall in third-quarter net profit to NOK 3.8 billion from NOK 5 billion a year ago, reflecting positive effects from reversal of impairments last year.

More datails of the company's resutls:

NOK million	Q3 2022	Q3 2021	9-mo 2022	9-mo 2021
Net operating revenues and other income underlying	13,232	8,111	43,675	27,935
Operating profit/loss (EBIT) underlying	8,959	4,609	30,729	17,458
Net profit/loss	3,825	4,956	14,049	12,198

“Steady operations, a solid financial position and good liquidity reserves mean Statkraft is well positioned amid the ongoing energy crisis in Europe,” according to chief executive Christian Rynning-Tonnesen.

The power company also said it expects a negative effect on its project profitability and investment capacity from the recently proposed regulatory changes in Norway including higher resource rent tax and a high-price contribution on hydropower generation.

(NOK 1 = USD 0.096/EUR 0.097)

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