Statkraft - fourth quarter and preliminary annual result for 2010

Thursday, 17. February 2011 08:01
Strong result driven by unusual cold winter

(Oslo, 17 February 2011) Historically cold winter weather with high power prices
and efficient management of the water reservoirs yielded an underlying(1) EBITDA
of NOK 5401 million for Statkraft in the fourth quarter of 2010, compared with
NOK 4484 million during the same period in 2009. The underlying profit before
tax amounted to NOK 5371 million, up from NOK 3986 million in the fourth quarter
of 2009.

For the full year 2010, the underlying EBITDA amounted to NOK 15 030 million,
compared with NOK 12 582 million in 2009. The underlying profit before tax
amounted to NOK 13 861 million, compared with NOK 10 654 million in the
preceding year. The results are characterised by 2010 being the coldest year in
70 years and lower than normal inflow, according to official measurements. The
power market was also influenced by Swedish nuclear plants operating with
reduced capacity for extended periods.

"Statkraft has contributed high energy generation in periods with high demand.
Following two unusual cold winters in a row, combined with lower inflow than
normal to the water reservoirs, Statkraft expects lower hydropower generation in
2011," says CEO Christian Rynning-Tønnesen.

In the fourth quarter, the average system price in the Nordic market was 62.0
EUR/MWh (36.6). The prices in 2010 were considerably higher compared with 2009,
and ended at 53.1 EUR/MWh (35.0). In the German market, the average spot price
on EEX was 51.4 EUR/MWh (38.7) in the fourth quarter, and 44.6 EUR/MWh (38.9)
for the year.

"Statkraft achieved several important milestones in 2010, and is well positioned
for stronger growth within environmental friendly and flexible energy
generation. The equity injection of NOK 14 billion in December shows that the
owner stands firmly behind Statkraft's strategy," says Rynning-Tønnesen.

The Group's total power generation for the fourth quarter was 18.0 TWh (17.8
TWh). Hydropower generation was somewhat higher than in the fourth quarter of
2009, while gas power generation was somewhat lower. In 2010, Statkraft
generated a total of 57.4 TWh, which is in line with the preceding year of 57.0
TWh. There were major monthly variations during the year, with Statkraft
producing considerably more than normal in January, February and December. At
the end of the year, the overall reservoir water levels in the Nordic region
were 36 per cent below normal, according to the Norwegian Water Resources and
Energy Directorate.

Statkraft had gross operating revenues of NOK 8939 million (NOK 8157 million) in
the fourth quarter, and NOK 29 252 million (NOK 25 675 million) in 2010. The
reported accounts are influenced by significant non-recurring items and
unrealised changes in value, and the accounting net profit for 2010 was NOK
7451 million (NOK 7716 million).
(1)) Adjusted for unrealised changes in value and significant non-recurring

Statkraft is Europe's leader in 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


This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.

Statkraft AS - Q4 Key figures:

Statkraft AS - Q4 Presentation:

Statkraft AS - Q4 Interim Report:

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Source: Statkraft via Thomson Reuters ONE

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