Norwegian utility Statkraft reported a second-quarter loss on Monday, citing lower Nordic power prices and reduced earnings from its markets division, as well as significant impairments linked to changing energy price forecasts.
Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) fell 31% year-on-year to NOK 4.5 billion (€378 million) in the three months to June, the company said in a financial update.
Statkraft posted a net loss of NOK 6.5 billion (€546 million) for the quarter, compared to a NOK 992 million (€83 million) loss in the same period last year. The decline was mainly driven by asset impairments totalling NOK 6.3 billion (€529 million).
The impairments were linked to “lower estimated power prices in certain regions,” the company said, affecting wind farms in Sweden and Norway, battery storage projects in the UK, and hydropower assets held through joint ventures in Chile.
“Given the current market situation and geopolitical realities, combined with Statkraft’s recent high activity and investment level, we are adjusting our strategic ambitions,” said chief executive Birgitte Ringstad Vartdal.
Statkraft announced in June a “refocused strategy” aimed at reducing costs and prioritising near-term profitable investments. The plan includes scaling back activity in selected regions and technologies, with the goal of cutting annual operating expenses by NOK 2.9 billion (€244 million) by 2027.
“Unfortunately, this will also include redundancies, as fewer tasks require fewer people,” Vartdal said. “In the months to come, we will do what we can to limit uncertainty and mitigate negative effects on our most important asset – our people.”
Despite the challenges, the company remains committed to the energy transition and continues to see long-term potential in select renewable technologies.
“While the current conditions are challenging for the entire industry and all businesses, the energy transition will prevail with continued opportunities for profitable growth, especially in solar, onshore wind and batteries,” Vartdal said. “We will manage and leverage this by reducing complexity and cost.”
Statkraft, owned by the Norwegian state, is one of Europe’s largest generators of renewable energy.
