Statkraft's wind, solar EBIT doubles in H1 2019

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

July 18 (Renewables Now) - Operating profit from the wind and solar division of Norway’s Statkraft AS almost doubled in the first half of 2019 to NOK 250 million (USD 29m/EUR 26m), even though it was negative in the second quarter due to development costs and M&A activities.

The state-owned utility said the six-month operating result, or earnings before interest and tax (EBIT), from wind and solar grew thanks to higher power generation across existing and new power plants, in addition to improved Nordic power prices.

The table below contains results for the wind and solar division, as reported by the company on Wednesday. The division’s operations are in Norway, Sweden, Ireland and the UK.

Results in NOK million Q2 2019 Q2 2018 H1 2019 H1 2018
Net operating income 206 226 725 509
Underlying EBITDA 42 117 416 290
Underlying EBIT (loss) (41) 49 250 129
Investments in new capacity 392 467 520 703
Power generation (in TWh) 0.5 0.5 1.3 1.0

Statkraft’s investments in new capacity were mainly related to the Fosen project in Norway, in which it holds a 52% stake. The Hitra II and Storheia projects of 94 MW and 288 MW, respectively, are planned to be completed in the third and in the fourth quarters of 2019. The other three Fosen phases, of 364 MW in total, are to be completed in the third quarter of 2020.

First-half underlying EBIT for the whole company was up by NOK 1.66 billion to NOK 9.05 billion, driven by higher contribution from trading, origination and market access activities in the segment Market operations. In the latter segment, Statkraft recently signed a contract to supply 525 GWh of solar power annually to Spanish renewable energy company Audax Renovables SA (BME:ADX). This week it was also announced that the company will buy power from Aventron AG's 50-MWp Bargas subsidy-free solar park in Toledo, Spain.

(NOK 10 = USD 1.17/EUR 1.04)

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