Recovery of Nordic power prices helped energy company achieve an EBIT of Nkr5.6bn [Image: Statkraft]
Statkraft recorded the highest earnings before interest and tax (EBIT) in a second quarter to date, due to a recovery of Nordic power prices.
Underlying EBIT was Nkr5.6bn (€534m) in the second quarter of 2021, compared with a loss of Nkr100m in the same quarter in 2020.
Net profit was Nkr2.4bn, an increase of Nkr1.9bn compared with the result in the second quarter last year.
“The recovery of Nordic power prices and high contribution from Statkraft’s market activities has led to a strong operating result in the second quarter”, said CEO Christian Rynning-Tonnesen.
The average Nordic system price was €41.9/MWh compared with €5.6/MWh in the same quarter in 2020.
Total power generation was 15.5TWh, slightly lower than the second quarter generation last year.
For the first half year of 2021, Statkraft reported a record-high underlying EBIT of Nkr12.8bn, an increase of Nkr8.9bn compared with the same period in 2020.
The main drivers for the increase were “significantly higher Nordic power prices and solid contribution from market activities”.
Net profit year to date was Nkr7.2bn.
“The strong results have a positive impact on our investment capacity, and together with a prolonged dividend policy this provides us with a solid foundation for further growth”, said Rynning-Tonnesen.
Statkraft has decided to construct four new solar plants in Cadiz, Spain.
The plants will have a total capacity of 234MW.
Statkraft also started the construction of Ballymacarney which will be Ireland’s largest solar farm.
The solar plants in Spain and Ireland are part of Statkraft’s portfolio of projects that are constructed with the intention to divest to external investors.
Increased power prices and higher expectations of future power prices have affected the investment capacity positively.
Statkraft is planning net investments up to Nkr13bn annually in renewable energy in the coming years.
The pace and total amount of investments will depend on market opportunities and market development and will be adapted to the financial capacity and rating target.