Statkraft AS - third quarter 2010

Thursday, 11. November 2010 08:00
Acceptable result driven by higher prices and lower production

(Oslo, 11 November 2010) Higher spot power prices, but lower generation, yielded
Statkraft an underlying(1) EBITDA of NOK 1745 million in the third quarter, an
increase from NOK 1444 million in the corresponding period last year. However,
the underlying net profit decreased to NOK 469 million, from NOK 600 million
year-on-year, following lower contributions from associated companies.

Year-to-date 2010, the underlying EBITDA reached NOK 9629 million, compared with
NOK 8098 million in the corresponding period in 2009. Correspondingly, the
underlying net profit was NOK 4940 million, compared with NOK 4415 million at
the same time last year.

"The quarterly result is as expected for the season, and is mainly driven by
seasonal variations. However, the results so far in 2010 reflect successful
power management throughout the year. Statkraft had high generation during the
winter due to cold weather and high power prices, after which we have chosen to
conserve some of the water in the hydro reservoirs," says CEO Christian Rynning-
Tønnesen.

In the third quarter, the average system price in the Nordic market was 45.9
EUR/MWh (31.3). The prices in the first nine months of the year have been
considerably higher, compared with the corresponding period in 2009, and ended
at 50.2 EUR/MWh (34.5). In the German market, the average spot prices were
42.3 EUR/MWh (38.9) during the first nine months, and 43.8 EUR/MWh (37.1) in the
third quarter.

The group's overall power generation for the third quarter reached 10.6 TWh
(11.9 TWh). The hydropower generation was on par with the third quarter last
year, while gas power generation was considerably lower. Year-to-date, Statkraft
generated a total of 39.6 TWh, which is in line with the corresponding period's
generation in 2009 of 39.1 TWh. In the fourth quarter, Statkraft expects
relatively lower hydropower production compared with the same period last year,
due to below-normal hydro reservoir levels. At the closing of September, the
overall reservoir hydro levels in the Nordic region were 18% below normal
levels, according to the NVE (Norwegian Water Resources and Energy Directorate).

Statkraft's gross operating revenues were NOK 20 314 million (17 518 million)
year-to-date. The reported income statement is influenced by unrealised changes
in value and non-recurring items. Hence, the accounting net profit was NOK
6759 million (NOK 5938 million).

In its quarterly report for the third quarter of 2010, Statkraft has corrected
earlier calculations of underlying tax costs in 2009 up to and including the
second quarter of 2010, which relates to changes in values of securities subject
to the exemption method. The accounting profit after tax is not affected.

(1)) Adjusted for unrealised changes in value and significant non-recurring
items


Statkraft is Europe's leader within renewable energy. The Group develops and
generates hydropower, wind power, gas power and district heating, and is a major
player on the European energy exchanges.  Statkraft has more than 3200 employees
in more than 20 countries.


For further information:
CFO Stein Dale, tel.:  +47 24 06 72 11 / +47 450 02 111
Spokesperson Knut Fjerdingstad, tel.: +47 24 06 71 61 /  +47 901 86 310
Investor Relations Johan Ailo Kalstad, tel.: +47 24 06 84 81 / +47 952 45 568
orwww.statkraft.no


This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)


[HUG#1461304]





Q32010 Presentation:
http://hugin.info/133427/R/1461304/400510.pdf

Q32010 Interim Report:
http://hugin.info/133427/R/1461304/400509.pdf

Q32010 Key Figures:
http://hugin.info/133427/R/1461304/400511.xls




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Source: Statkraft via Thomson Reuters ONE
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