Strong Q3 results, storing water for the winter

11 Nov 2022 08:00 CET

(Oslo, Norway, 11.11.2022) - Statkraft delivered strong third quarter results,
supported by high energy prices and solid contributions from trading and
origination activities. The underlying EBIT almost doubled to NOK 9 billion
despite lower hydropower production in Southern Norway to store water for the
winter. The quarter was characterized by volatile markets as the war in Ukraine
and the European energy crisis continued.

* Net operating revenues rose to NOK 13.2 billion from NOK 8.1 billion in Q3
2021
* Underlying EBIT almost doubled to NOK 9 billion vs. Q3 2021
* Cashflow from operations was NOK 8.6 billion, down from NOK 9.9 billion in
Q3 2021
* Total power generation was 12.2 TWh, down 3.1 TWh, due to lower hydropower
generation in Southern Norway

"The European energy crisis continued in the third quarter following Russia's
invasion of Ukraine earlier in the year. Historically high power prices remained
a burden for European consumers and industries. Statkraft reduced its Southern
Norwegian hydropower generation considerably to store water for the coming
winter," says Statkraft CEO, Christian Rynning-Tønnesen.

Reservoir levels in Southern Norway have recently increased and are today higher
than at the same time last year.

"Steady operations, a solid financial position and good liquidity reserves mean
Statkraft is well positioned amid the ongoing energy crisis in Europe. We will
continue to deliver on our ambitious growth strategy and take a leading role in
the global energy transition," says Rynning-Tønnesen.

Record-high European gas prices and reduced availability of nuclear power
capacity in Europe combined with dry weather in Southern Norway, led to a surge
in power prices. The average Nordic system price reached a new record level of
176 EUR/MWh in the quarter. At the same time, prices continued to differ
significantly between price areas, with particularly high prices in Southern
Norway. For Statkraft higher energy prices contributed positively to the results
from its Nordic hydropower generation activities, while power generation was
reduced by 20 percent to store water for the winter.

Statkraft delivered an underlying EBIT of NOK 9 billion in the quarter, an
increase of NOK 4.3 billion compared with the same quarter last year. The
increase was primarily related to the Market operations segment with strong
results from trading and origination activities where Statkraft buys and sells
both standard and structured energy-related products. In addition, the result
from risk reducing activities in the Dynamic Asset Management Portfolios (DAMP)
improved from last year, however still with a negative result. The negative
results from DAMP are explained by an increase in the forward power prices,
which leads to unrealized losses.

Despite significantly lower hydropower generation, particularly in the southern
parts of Norway where the power prices are highest, the European flexible
generation segment delivered an EBIT on par with the same quarter in 2021. This
was due to higher results from Baltic Cable and improved contribution from the
gas-fired power plants in Germany on the back of high peak spark spreads.

Statkraft continues to offer long-term power contracts to maintain the position
as a competitive supplier to the industry in Norway. In the quarter, Statkraft
signed such an agreement with the ferrosilicon company Finnfjord, extending the
existing agreement to 2044. In November, a new power sales agreement was signed
with the producer of publication paper Norske Skog. The agreement will ensure
delivery of 2.9 TWh over the contracted period from 2024 until 2030.

The recently proposed regulatory changes in Norway with higher resource rent tax
and a high-price contribution on hydropower generation will have a negative
effect on our project profitability and investment capacity. However, Statkraft
still has a solid financial foundation for further growth.

For further information, please contact:

Debt Capital Markets:
Vice President Stephan Skaane, tel: +47 905 13 652, e-mail:
stephan.skaane@statkraft.com (mailto:stephan.skaane@statkraft.com)
Senior Financial Advisor Arild Ratikainen, tel: +47 971 74 132, e-mail:
arild.ratikainen@statkraft.com (mailto:arild.ratikainen@statkraft.com)

Media:
Vice President Josiane Kremer, tel: +47 481 80 451, e-mail:
josiane.kremer@statkraft.com (mailto:josiane.kremer@statkraft.com)
Head advisor Lars Magnus Günther, tel: +47 912 41 636, e-mail:
lars.gunther@statkraft.com (mailto:lars.gunther@statkraft.com)

or www.statkraft.com (http://www.statkraft.com)

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

About Statkraft
Statkraft is an international leader in hydropower and Europe's largest producer
of renewable energy. The Group generates electricity from water, wind, biomass
and gas, produces district heating and is a major player in energy trading.
Statkraft employs 4,800 people in 20 countries.

More information:
Access the news on Oslo Bors NewsWeb site

575485_Interim report Q3 2022.pdf
575485_Presentation Q3 2022.pdf