Underlying results remain robust as markets continue to normalise

23 Jul 2024 08:00 CEST

(Oslo, Norway, 23 July 2024) - Statkraft reported robust underlying results in
the second quarter 2024 with solid contributions from power generation, and
market operations as power prices continued to fall. Net profit was negative,
impacted by impairments mainly due to local changes in hydrology and lower price
expectations.

* Net operating revenues was NOK 11.2 billion in Q2 2024 compared to 12.9
billion in the comparable quarter last year, while underlying EBIT decreased
to NOK 4.9 billion (NOK 7.4 billion)
* Net profit was NOK -1.0 billion (NOK 5.5 billion), including impairments of
NOK 3.1 billion in hydropower assets in Albania and Turkey due to lower
expected generation, as well as NOK 841 million in German wind power assets
explained by lower future power prices, and NOK 348 million in hydropower in
India.
* Power prices fell by 38 per cent in the Nordic region in the second quarter
and 46 percent in Germany compared to the same quarter last year.
* Statkraft completed the acquisition of Spanish-based renewable energy
company Enerfin for a total consideration of NOK 18 billion, adding a
portfolio of operating wind farms and wind and solar projects. As announced
earlier, Statkraft plans to divest the Enerfin portfolio in Canada, the US,
Colombia, Australia, and Chile.
* Statkraft signed several long-term power contracts, including power purchase
agreements both in Europe and South America. In July, a new PPA contract
with Alcoa Norway was signed, delivering a volume of 876 GWh per year from
2025 to 2027 to their facilities in Lista (NO2).
* Statkraft announced plans to find new owners for its district heating
business in Norway and Sweden.
* In June, Statkraft announced its updated strategy, including revised
strategic targets.

"I am pleased that we continue to deliver strong underlying results, despite
lower prices. Higher power production, good energy management and solid results
from market activities contributed positively to the results. While our
underlying results are robust, continued high business development costs as we
are investing in more renewable energy production for the future, reduced
financial hedging effects and impairments explains the negative net result,"
says Statkraft President and CEO, Birgitte Ringstad Vartdal.

The average system price in the Nordic region was 35.3 EUR/MWh, down 20.7
EUR/MWh from the second quarter of 2023 and down 23.0 EUR/MWh from the first
quarter of 2024, mainly due to high temperatures causing rapid snow melting,
high inflow and low consumption, as well as lower continental prices. The price
area differences in Norway continued to decrease, with prices in the southern
price areas (NO1 and NO2) still higher than the rest of the country.

Average German base price was 71.8 EUR/MWh, down 20.6 EUR/MWh from the same
quarter last year, while up 4.2 EUR/MWh since the first quarter 2024. Power
prices were down compared to last year mainly due to lower gas and carbon
prices, as well as higher nuclear production in France.

Statkraft's generation was 14.4 TWh in the second quarter 2024, 1.3 TWh higher
than the second quarter last year. The increase was driven by Norwegian
hydropower and increased generation capacity in Brazil and Germany.

Operating expenses rose from the second quarter last year and were slightly
higher than in the first quarter. The increase was driven by a higher number of
FTEs, salary adjustments and currency effects, partly offset by lower
performance related remuneration, as well as increased activity level and
increased depreciations and amortisations from new assets.

Underlying EBIT was NOK 4.9 billion, compared to NOK 7.4 billion in the same
quarter last year, driven by the significantly lower power prices and hedging
effects both in Nordics and Europe, partly offset by higher revenues from new
capacity and gas-fired power plants.

The Nordics segment was the main contributor to the results with an underlying
EBIT of NOK 4.4 billion despite significantly lower power prices compared to
last year. The Markets segment delivered a strong underlying EBIT of NOK 1.1
billion in the quarter, primarily related to origination activities.

Net financial items in the second quarter included positive currency effects of
NOK 1.7 billion due to a strengthening of NOK vs. EUR.

Profit before tax was NOK 1.1 billion (NOK 12.3 billion) in the quarter,
including total impairments of NOK 4.5 billion. The second quarter 2023 results
included reversals of impairments of NOK 2.2 billion.

After the completion of the acquisition of Enerfin in June, Statkraft's total
portfolio of power plants in operation now exceeds 21 GW. It confirms the
company's position as Europe's largest producer of renewable energy and places
Statkraft among the top ten wind power producers both in Spain and Brazil. The
acquisition added not only a portfolio of 1.5 GW of wind and solar farms in
operation and under construction, but also a pipeline of projects under
development. This has brought Statkraft's flexible portfolio of projects under
development to a probability-weighted total of 21 GW.

"Coming from a period of extensive project- and business development, it is now
time to consolidate and sharpen our focus on delivering and capitalising on the
strong pipeline we have developed. I am confident that the revised strategy
plays to our competitive strengths and helps us manoeuvre the changes in our
industry, while also setting us up for continued healthy growth. In doing so, we
will continue to renew the way the world is powered," says Birgitte Ringstad
Vartdal.

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:
Media Spokesperson Lars Magnus Günther, tel: +47 912 41 636, e-mail:
lars.gunther@statkraft.com (mailto:lars.gunther@statkraft.com)
Vice President Torbjørn Steen, tel: +47 911 66 888, e-mail:
torbjorn.steen@statkraft.com (mailto:torbjorn.steen@statkraft.com)

or 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 a leading company in hydropower internationally and Europe's
largest generator of renewable energy. The Group produces hydropower, wind
power, solar power, gas-fired power and supplies district heating. Statkraft is
a global company in energy market operations. Statkraft has over 6,000 employees
in more than 20 countries.

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

More information:
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623971_Q2-2024 Interim Report.pdf
623971_Q2-2024 Presentation.pdf