Statkraft reported a decline in underlying earnings before interest and tax (EBIT) for the second quarter of 2024, the company announced on Tuesday. Underlying EBIT was Nkr4.9 billion (€409 million), down from Nkr7.4 billion in the same period in 2023. Net operating revenues also decreased, reaching Nkr11.2 billion in Q2 2024 compared to Nkr12.9 billion in Q2 2023.
The decrease in EBIT was primarily attributed to significantly lower power prices, although this was partly offset by higher power generation. The contribution from trading activities was also lower. The company posted a negative net profit, impacted by impairments largely due to local changes in hydrology and reduced price expectations.
Power prices fell by 38% in the Nordic region and 46% in Germany during the second quarter compared to the same period last year.
Statkraft completed the acquisition of Spanish-based renewable energy company Enerfin for Nkr18 billion, adding a portfolio of operational wind farms and wind and solar projects. Statkraft plans to divest the Enerfin portfolio in Canada, the US, Colombia, Australia, and Chile.
During the second quarter, Statkraft signed several power purchase agreements in Europe and South America, including a new agreement with Alcoa Norway. Wind generation increased to 1.6GW from 900MW, while solar and biomass remained at 100MW and hydropower increased to 12.2GW from 11.7GW.
Statkraft President and CEO Birgitte Ringstad Vartdal commented on the results, stating, “While our underlying results are robust, continued high business development costs as we are investing in more renewable energy production for the future, reduced financial hedging effects, and impairments explain the negative net result.”
Following the acquisition of Enerfin, Statkraft's total portfolio of operational power plants now exceeds 21GW, positioning the company among the top 10 wind power producers in Spain and Brazil. The acquisition added 1.5GW of wind and solar farms in operation and under construction, as well as a pipeline of projects under development, increasing Statkraft's probability-weighted total of projects under development to 21GW.
Ringstad Vartdal added, “Coming from a period of extensive project and business development, it is now time to consolidate and sharpen our focus on delivering and capitalizing on the strong pipeline we have developed. I am confident that the revised strategy plays to our competitive strengths and helps us maneuver the changes in our industry, while also setting us up for continued healthy growth. In doing so, we will continue to renew the way the world is powered.”
