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Statkraft's wind unit moves to op profit in Q4

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

Feb 16 (Renewables Now) - The wind power division of Norwegian state-owned utility Statkraft recorded an operating profit of NOK 156 million (USD 18.6m/EUR 17.6m) in the final quarter of 2016, against a NOK-50-million loss a year earlier.

Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) rose to NOK 239 million from NOK 37 million, aided by a significant increase in power prices compared to the fourth quarter of 2015, Statkraft said today. The improvement came in spite of a decline in production due to lower wind speeds.

In the full year, the division made an operating loss of NOK 781 million, which marked a narrowing from the NOK-2.01-billion loss in 2015.

Statkraft, which generates most of its energy through hydropower, saw its overall underlying EBITDA increase both in the fourth quarter and the full year as Nordic power prices rose and production grew. It booked a profit before tax for 2016, but after tax the result was a loss of NOK 179 million, compared to a NOK-2.37-billion loss in 2015.   

"The energy market is challenging and Statkraft is implementing a performance improvement programme and a revised strategy," said chief executive Christian Rynning-Tonnesen. The company said it will broaden the technology scope to include onshore wind and solar power, besides hydropower, in selected international markets.

The table gives more details about the financial results of Statkraft's wind power segment.  


Results (in NOK million)
 
Q4 2016 Q4 2015 2016 2015
Sales
revenues,
underlying
250 208 649 587
Gross
operating
revenues,
underlying
384 253 802 755
Net
operating
revenues,
underlying
371 237 759 712
EBITDA,
underlying
239 37 192 76
Operating
profit (loss),
underlying
156 (50) (196) (257)
Operating
profit (loss),
booked
156 (50) (781) (2,008)
Production,
volume
sold
(TWh)
0.6 0.7 1.9 2.2

(NOK 1.0 = USD 0.119/EUR 0.113)

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Plamena has been a UK-focused reporter for many years. As part of the Renewables Now team she is taking a keen interest in policy moves.

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