Statkraft, Europe's largest producer of renewable energy, reported a decline in profits for the first quarter of 2024 as power prices took a downturn after what the company termed as “extraordinary years” in the energy markets.
The underlying earnings before interest and tax (EBIT) for Statkraft decreased to Nkr13.5bn (€1.2bn), down from Nkr17.5bn in the corresponding period of 2023. Profit after tax for the first quarter of 2024 stood at Nkr6.8bn compared to Nkr10.2bn in the same quarter last year.
The drop in profits was attributed to the normalization of energy markets and a sharp decrease in power prices, influenced by factors such as lower gas prices, a mild winter, and reduced demand.
European power prices witnessed a significant decline, plummeting by 31% in the Nordic region and 42% in Europe/Germany compared to the exceptionally high prices recorded in the same quarter of the previous year.
Statkraft noted slightly higher wind power generation, improved nuclear availability, and reduced total exports as contributing factors to the continued decrease in Nordic power prices.
Despite the challenging market conditions, Statkraft's overall generation surpassed that of the previous year's first quarter, driven primarily by increased hydropower generation in Norway and Brazil.
“I am satisfied with the strong results despite much lower power prices in the first quarter,” remarked Statkraft's chief executive Birgitte Ringstad Vartdal, who assumed the role on April 1st.
Vartdal added, “We continue to deliver strong performance in power generation and energy management, and high value-creation in trading and origination. We are well positioned with a solid and scalable business model that provides us with the flexibility needed to quickly adapt to changing market conditions.”
