Statkraft has reported a 56% rise in underlying operating profit for the third quarter of the year thanks to a recovery in Nordic power prices and higher production.
Operating profit increased to NOK2001m compared with NOK1299m a year ago as Nordic power prices rose 89% to an average of 25.2MWh.
The Norwegian company also reported a net loss of NOK1417m in the quarter due to the impairment of hydro- and wind power assets in several countries.
This was caused by lower long term expectations, which have been negatively influenced by lower fuel price forecasts, it said.
Statkraft has started preparations for the divestment of offshore wind assets, following its decision last year not to invest in such projects and to optimize its existing UK portfolio.
It aims to cut costs by 15% by the end of 2018, compared with 2015, to boost performance.
“Statkraft’s core operations are fundamentally strong with a solid cash flow,” Statkraft chief executive Christian Rynning-Tønnesen said.
“The impairments reflect a decline in our long term price expectations,” he said. “In order to adapt to the market development, we are running an extensive improvement programme in all parts of the organisation.”
Image: Statkraft
