Results remain strong as power prices continue to drop

(Oslo, Norway, 7 May 2024) – Statkraft reported strong results in the first quarter 2024 as power prices continued to drop following two extraordinary years in the energy markets. Statkraft’s power generation, energy management, and trading and origination activities delivered solid performance.

• Net operating revenues was NOK 19.6 billion in Q1 2024 compared to 23.5 billion in the comparable quarter last year when the European energy crises caused extraordinary market conditions. Underlying EBIT decreased to NOK 13.5 billion (NOK 17.5 billion), while profit after tax was NOK 6.8 billion (NOK 10.2 billion).
• Energy markets continued to normalise and power prices dropped sharply, driven by lower gas prices, a mild winter and reduced demand. European power prices in the first quarter fell by 31 per cent in the Nordic region and 42 percent in Europe/Germany compared to the extraordinary high prices in the same quarter last year.
• Statkraft signed several long-term power contracts, including power purchase agreements with Alcoa Norway and Hydro Energi in Norway, as well as Bürgerwindpark Jevenstedt in Germany.
• Statkraft divested the Ballymacarney solar project (199 MW) in Ireland for NOK 1.8 billion.
• On 18 March Statkraft announced the appointment of Birgitte Ringstad Vartdal as President and CEO of Statkraft with effect from 1 April.
  
  

“I am satisfied with the strong results despite much lower power prices in the first quarter. 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," says Statkraft CEO, Birgitte Ringstad Vartdal.

The average system price in the Nordic region was 58.3 EUR/MWh, down 26.8 EUR/MWh from extraordinary prices in the first quarter of 2023 and about the same level as the fourth quarter of 2023. The price area differences in Norway continued to decrease, with prices in the southern price areas (NO1 and NO2) still facing higher prices than the rest of the country.

Higher nuclear availability, slightly higher wind power generation and lower total export contributed to continued decline in Nordic power prices. Temperatures in Norway were slightly higher than normal. Nordic reservoir levels decreased during the first quarter to 76% of median by the end of March and is currently at 81.4% of median, equivalent to 23.7% of full capacity.