Losses in the hydro and wind divisions of Statkraft narrowed in 2016 on the back of steady power production numbers.
The company booked an operating loss of Nkr819m in 2016 from hydro, compared with Nkr1.9bn a year earlier.
Similarly, in wind losses narrowed to Nkr196m in 2016, compared with Nkr257m a year earlier.
Underlying EBITDA in both divisions increased, however, with hydro booking Nkr1.2bn for the year, up from Nkr572m, and wind banking Nkr192m, up from Nkr76m.
Statkraft said this was influenced by lower production than normal “despite new capacity in Sweden” but “higher prices and lower operating expenses compensated for the low production”.
It also adjusted for “significant items” of Nkr4.7bn. Included in this were impairments on a hydro project in Albania of Nkr1.1bn, wind farms in Sweden of Nkr585m and hydropower assets in the Nordics of Nkr573m.
Investment in new wind capacity dropped to Nkr1.5bn, down from Nkr3.3bn a year earlier.
Overall, Statkraft’s underlying EBITDA rose 35% in the fourth quarter of the year thanks to higher Nordic power prices and production.
EBITDA reached Nkr4.9bn, compared with Nkr3.2bn in the same period of 2015.
Average power prices in the quarter were €34.5 per megawatt-hour, or 57% higher than a year earlier, while production rose 20% to 19 TWh.
The Norwegian company is implementing a revised strategy to increase its competitiveness as well as growth in renewable energy, it said.
It also aims to grow further in Norway, exploring opportunities arising from the country’s energy transition.
Image: Statkraft
