Underlying earnings at Norwegian utility Statkraft jumped over 200% to almost Nkr6bn (€619m) in the first quarter of 2018, from just under Nkr2bn in the same period last year, boosted by the sale of the company’s 30% interest in the 402MW Dudgeon offshore wind farm.
The divestment resulted in a gain of Nkr5.1bn for the company, which said offshore sales have “demonstrated high value creation”. The Dudgeon share was sold to state-owned China Resources.
Statkraft also benefited from increased power prices in the Nordic region, up 24% on average to €38.6 a megawatt-hour, and increased output on the back of record hydro generation in Norway.
However, the company’s wind assets produced 24% less power in the period as a result of lower wind speeds in Sweden.
Hydro power generated 19.9 terrawatt-hours in the first quarter, compared with 15.8TWh at the start of 2017, while wind production was 0.6TWh down from 0.8TWh.
Statkraft chief executive Christian Rynning-Tonnesen said: “We are pleased with a very strong quarterly result, stemming from successful energy management and large gains from divestments.
“The offshore wind portfolio has overall been one of the most profitable investments in Statkraft’s history with accumulated gains amounting to Nkr8.7bn from sale of assets.
“The exit from offshore wind provides a solid financial foundation for new renewable energy investments.”
Image: Dudgeon offshore wind farm (reNEWS)
Dudgeon sale fuels Statkraft surge
By EBS