Statkraft reported a drop in earnings during the second quarter of 2025 on the back of lower power prices in the Nordic region and reduced contributions from its markets business unit.
Underlying EBITDA during the three months fell 31% year-on-year to NOK4.5bn (€378m), it said in a financial update.
The Norwegian utility booked a NOK6.5bn (€546m) loss for the April-June period, widening from a NOK992m (€83m) loss a year ago.
Impairments totalling NOK6.3bn (€529m) were recorded, mainly caused by “lower estimated power prices in certain regions” including wind farms in Sweden and Norway, as well as battery storage projects in the UK and joint venture hydropower plants in Chile.
“Given the current market situation and geopolitical realities, combined with Statkraft’s recent high activity and investment level, we are adjusting our strategic ambitions,” said chief executive Birgitte Ringstad Vartdal (pictured).
“By concentrating on our core competitive advantages and prioritising investments in near-term profitable opportunities, we can continue our growth and value creation, while contributing significantly to energy security and the energy transition.”
The company will stick to a “refocused strategy” announced last month that will see it scale back investments in certain regions and technologies as it aims to cut annual costs by NOK2.9bn (€244m) annually by 2027.
“Unfortunately, this will also include redundancies, as fewer tasks require fewer people,” said Vartdal.
“In the months to come we will do what we can to limit uncertainty and mitigate negative effects on our most important asset – our people.
“The energy markets are characterised by continuous change, with higher volatility and more geopolitical uncertainty than before.
“While the current conditions are challenging for the entire industry and all businesses, the energy transition will prevail with continued opportunities for profitable growth, especially in solar, onshore wind and batteries.
“We will manage and leverage this by reducing complexity and cost.”