Statkraft's wind, solar division more than triples Q1 underlying EBIT

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

May 9 (Renewables Now) - Norwegian state-owned utility Statkraft AS today said the underlying EBIT of its European wind and solar division more than tripled in the first quarter of 2018, driven by higher power prices and favourable wind conditions.

The company’s improved performance was also helped by the increased prices of electricity certificates and new wind capacity additions in Norway, which in turn boosted generation. The European wind and solar segment’s underlying EBIT in the first quarter came at NOK 291 million (USD 33.1m/EUR 29.6m), up from NOK 80 million a year before.

The division is involved in the development, ownership and operation of onshore wind and solar capacity in Norway, Sweden, Ireland and the UK. Its investments in new capacity during the reporting period totalled NOK 129 million and were mainly related to the Fosen wind portfolio, which will have a total capacity of 1,057 MW upon completion.

More details about the segment’s first-quarter results can be seen in the table below.

Amounts in NOK (unless otherwise noted) Q1 2019 Q1 2018
Gross operating income 535 295
Net operating income 519 283
EBITDA, underlying 374 172
Operating profit (loss), underlying  291 80
Operating profit (loss), booked under IFRS 291 80
Investments in new capacity 129 237
Generation (TWh) 0.9 0.5

Statkraft booked a net profit of NOK 4.75 billion for the first quarter, down from NOK 10.28 billion from the year-ago period, which included gains from divestments of almost NOK 6.8 billion. Thanks to the higher contribution from market activities and wind power generation, underlying EBIT grew to NOK 6.43 billion from NOK 5.96 billion, while underlying net operating revenues rose to NOK 9.35 billion from NOK 8.88 billion.

Apart from wind and solar, Statkraft is also involved in gas-fired, hydro and biomass power production. Its future goals call for the expansion of its hydropower portfolio and the addition of 8 GW of onshore wind and solar capacity by 2025.

(NOK 1.0 = USD 0.114/EUR 0.102)

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