Statkraft aims to invest 44bn-67bn Norwegian kroner ($4.1bn-$6.3bn) in Norwegian hydro and wind power.
The company released its annual report for 2023, when Statkraft saw its net operating revenues fall 65.3bn kroner ($6.1bn) in 2023 compared to 75.3bn kroner ($7bn) the year before, when the European energy crisis caused extraordinarily high prices and extreme volatility.
Underlying EBIT decreased to 41.4bn kroner ($3.9bn) from 54.4bn kroner ($5.1bn) in 2022 mostly due to significantly lower power prices, while profit after tax was 26.1bn kroner ($2.4bn) compared to 28.6bn ($2.6bn) kroner.
Statkraft reported profit before tax of 51bn kroner ($4.8bn), including net financial items of 1bn kroner ($94m). Profit after tax was 26.1bn kroner($2.4bn).
Statkraft signed a record number of long-term agreements with Norwegian industrial companies, totalling 64TWh. Furthermore, Statkraft signed several power purchase agreements in other markets, including its first long-term power contract in the US.
In addition, the company signed an agreement to acquire Spanish-based Enerfin for about 21bn kroner ($1.9bn).
Enerfin’s renewable energy platform includes 1500MW wind power in operation and under construction, and a pipeline of projects at various stages of development.
Closing of the transaction is expected in the second quarter 2024.
After closing, Statkraft will divest Enerfin’s portfolio in Canada, the US, Colombia and Australia, reducing the acquired portfolio to 1247MW of wind and solar in operation or under construction and a pipeline of 565MW in the core markets Spain and Brazil.
“Statkraft delivered its second-best annual result in 2023, as markets continued to stabilise after the extraordinary situation and a record 2022. The results are above historical levels, as the market activities continued to show strong performance even though volatility and prices are much lower. We are seeing signs that the forward prices are stabilising on a level closer to the price levels seen before the energy crisis,” said outgoing Statkraft CEO Christian Rynning-Tonnesen.
“We are on target to deliver our share of the renewable energy that the world needs, with a steadily increasing pipeline of projects and an organisation fit for the challenge,” he added.