Statkraft's wind business delivers growing underlying EBIT in Q4

The Roan wind park in Norway. Source: Twitter, @FosenVind

February 15 (Renewables Now) - The wind power division of Norwegian state-owned utility Statkraft AS booked an underlying EBIT of NOK 201 million (USD 23.2m/EUR 20.6m) in the fourth quarter of 2018, rising from NOK 32 million a year back thanks to higher power prices and new capacity additions.

The improved earnings before interest and tax (EBIT) were attributed to the better prices of power and electricity certificates, as well as the completion of the 256-MW Roan wind farm in Norway. This plant is part of the Fosen portfolio, which will have a total capacity of 1,057 MW upon completion of five more wind parks.

The utility now also owns the Irish and UK onshore wind development operations of Element Power, including its 1,550 MW-portfolio.

On the wind front, Statkraft is involved in the development and operation of onshore wind projects in Norway, Sweden, Ireland and the UK. The division’s investments in new capacity during the fourth quarter and 2018 totalled NOK 324 million and NOK 1.62 billion, respectively.

More details about the performance of Statkraft's wind division are available in the table below.

Amounts in NOK (unless otherwise noted) Q4 2018 Q4 2017 2018 2017
Gross operating revenues and other income 516m 259m 1.37bn 761m
Net operating revenues and other income 501m 247m 1.32bn 716m
EBITDA, underlying 283m 126m 738m 234m
Operating profit (loss), underlying  201m 32m 429m (132m)
Operating profit (loss), booked 202m 35m 431m (61m)
Investments in new capacity 324m 136m 1.62bn 500m
Production, volume sold (TWh) 0.8 0.7 2.2 2.2

In line with its future expansion plans, the company targets to grow “significantly” on the South American and Indian renewables markets, setting aside around NOK 10 billion for renewable energy investments per year towards 2025. “The target is to maintain and further grow the hydropower portfolio, develop a portfolio of 8,000 MW onshore wind and solar power, increase the market activities and develop district heating and develop new businesses with international potential,” the company said.

Statkraft closed 2018 with a net profit of NOK 13.39 billion in 2018, up from NOK 11.71 billion a year earlier. Net operating revenues, meanwhile, improved to NOK 26.93 billion from NOK 23.35 billion.

(NOK 1.0 = USD 0.115/EUR 0.102)

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