Statkraft AS - first quarter 2010

Thursday, 20. May 2010 08:02
Increased energy prices and production
(Oslo, 20 May 2010) Statkraft's underlying operating profit(1) for the first
quarter of 2010 amounted to NOK 5 493 million (NOK 3 943 million)(2). The
company's underlying profit before tax amounted to NOK 5 375 million (NOK 3 485
million).  The profit is attributed to increased demand and higher energy prices
in the Nordic region, compared with the same period in 2009. However, lower than
average water reservoir levels indicate reduced production in the time ahead.

"The result shows Statkraft's ability to adapt to a variable energy markets.
Production in 2009 was relatively low, as a result of the economic decline in
energy-intensive industry. However, in the period from December last year to
February this year, production was well above our normal level, spurred by cold
weather, increased demand and high energy prices," says CEO Christian
Rynning-Tønnesen.

"The high production and dry weather has, however, resulted in lower than
average water reservoir levels. We will therefore restrict our water use
somewhat in the time ahead, and are expecting lower short-term production,"
Rynning-Tønnesen says.

Statkraft generated 18.4 TWh (17.1) in the first quarter. Gas power contributed
to increased production, whilst production from hydropower plants remained at
the same level as in the same period last year. Hydropower production in January
and February was, however, significantly higher than normal. Combined with dry
weather, this resulted in lower reservoir levels. Temperatures rose again from
March onwards, reducing demand. At the same time, two Swedish nuclear power
production plants resumed operation. Hence, Statkraft's hydropower production in
March was reduced.

At the end of March, the overall water level in the Nordic region's reservoirs
was 62.7 per cent of normal levels, corresponding to 27.9 TWh.

The average system price in the Nordic market was substantially higher in the
first quarter of 2010 than in the corresponding period in 2009, ending at 59.8
EUR/MWh (38.2 EUR/MWh). At the same time, the average spot price in the German
market was lower in the first quarter, at 41.1 EUR/MWh compared to 47.4 EUR/MWh
last year.

Statkraft generated gross operating revenues of NOK 10 507 million (NOK 8 031
million) in the first quarter. The reported accounts are impacted by unrealised
changes in value and the reported profit for the first quarter of 2010 was NOK
7 492 million before tax (NOK 4 348 million), and NOK 4 532 million after tax
(NOK 2 723 million).


Statkraft is the European leader in renewable energy. The Group develops and
produces hydropower, wind power, gas power and district heating, and is a major
player on the European energy exchanges. Statkraft also develops marine energy,
osmotic power, solar power and other new energy solutions. Through ownership in
other companies, the Group supplies power and heating to about 600 000 customers
in Norway. The Group's sales amounted to NOK 26 billion in 2009. Statkraft has
more than 3400 employees in more than 20 countries.


For further information:
Executive vice president/CFO Stein Dale, tel.: +47 24 06 72 11 / +47 450 02 111
Vice president investor relations Yngve Frøshaug, tel.: +47 24 06 78 76 / +47
900 23 021
Executive vice president Ragnvald Nærø, tel.: +47 24 06 71 00 / +47 900 80 303
or www.statkraft.no


(1 )Adjusted for unrealised changes in value and significant non-recurring
items.
(2) Figures in parentheses show comparable figures for the corresponding period
in 2009.


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



[HUG#1417401]





Statkraft AS - Presentation Q1 2010: http://hugin.info/133427/R/1417401/367847.pdf
Statkraft AS - Key figures Q1 2010: http://hugin.info/133427/R/1417401/367848.xls
Statkraft AS - Interim report Q1 2010: http://hugin.info/133427/R/1417401/367844.pdf
Related Links: 
Author:
Hugin
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