Statkraft Achieves Resilient Q3 Results Amid Power Price Challenges

Norwegian energy company has disclosed solid third-quarter results, demonstrating resilience in the wake of significantly lower power prices. Despite a decrease in net operating revenues to €890 million (NOK 10.6 billion) from €1.1 billion (NOK 13.2 billion) in the same quarter last year, the company reported robust performance in value creation, particularly in energy management and market activities.

The decline in European power prices during Q3 2023—down by 84% in the Nordic region and 76% in compared to the extraordinary highs of the previous year—was attributed to normalized energy markets and wetter weather conditions. Statkraft CEO Christian Rynning-Tonnesen emphasized the company's ability to deliver stable operations and create value despite the challenging market conditions.

Statkraft's average system price in the Nordic region plummeted to €28/MWh, a significant drop from the extraordinary prices recorded in Q3 2022. However, the company signed long-term power contracts, including a notable agreement with AstraZeneca in , reflecting ongoing business resilience.

Despite lower power prices, the Nordics segment emerged as the primary contributor to Statkraft's results, with the Markets segment delivering strong performance in origination activities. The company reported profit before tax of NOK 5.9 billion, including positive currency effects and net financial items of NOK 2.1 billion.

Statkraft remains committed to its ambitious growth strategy, aiming to build 2.5 GW to 3 GW of capacity per year from 2025, with a target of around 4 GW by 2030. The current pace stands at 1 GW per year. The company continues to diversify its portfolio with acquisitions, including a solar and wind project development portfolio in Ireland and operational wind farms in Germany and France.

CEO Rynning-Tonnesen underscored the urgency for more renewable energy, highlighting Statkraft's focus on hydropower assets, offshore and onshore wind, solar, and batteries. Additionally, plans are underway to increase installed capacity in existing hydropower plants in Norway, with a potential capacity increase of 1.5 GW to 2.5 GW.

In October, Statkraft acquired two Swedish wind power developers, augmenting its portfolio with early-phase projects boasting a total potential of 16 GW to 17 GW of onshore wind and up to 21 GW of offshore wind. The company is actively seeking a new partner for the development of advanced technology following the acquisition of Södra's shares in Silva Green Fuel.

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