Robust underlying results, record-strong energy management

07 Nov 2024 08:00 CET

(Oslo, Norway, 7 November 2024) - Statkraft delivered robust underlying results
and record-strong energy management in the third quarter of 2024, despite lower
power prices in the Nordics. Reported results were impacted by net financial
items of NOK -3.4 billion, mostly due to a weaker NOK.

* Net operating revenues were NOK 9.8 billion in the third quarter 2024
compared to NOK 10.7 billion in the comparable quarter last year, while
underlying EBIT decreased to NOK 3.0 billion (NOK 4.9 billion).
* Reported EBIT of NOK 4.6 billion (NOK 3.2 billion) included unrealised value
changes from embedded EUR derivatives of NOK 1.7 billion in the quarter (NOK
-1.6 billion).
* Net financial items were NOK -3.4 billion in the third quarter (NOK 2.1
billion), including currency effects of NOK -2.6 billion primarily due to a
weakening of NOK vs. EUR.
* Profit before tax was NOK 1.5 billion (NOK 6.0 billion) in the quarter,
while net profit was NOK -0.2 billion (NOK 4.5 billion).
* Power prices fell by 28 per cent in the Nordic region in the third quarter
and 16 percent in Germany compared to the same quarter last year.
* Statkraft decided to undertake upgrades and maintenance work of NOK 0.9
billion in the tunnel system between hydropower reservoir Blåsjø and Saurdal
power station in Norway.
* Statkraft made investment decisions for two grid stabiliser projects in
Europe.
* Statkraft announced that investments in Norway, Europe, and South America
will be prioritised going forward.

"Statkraft continues to deliver robust underlying results, despite lower prices
and lower hydropower production in Norway. Solid energy management has led to a
record-high price margin in our Nordic hydropower fleet, reflecting the
increased value of these assets. Due to high inflow and long-term energy
management, Statkraft is well prepared to meet increased demand and expected
higher prices during the winter season," says Statkraft President and CEO,
Birgitte Ringstad Vartdal.

She adds:

"In Europe and International, results reflected a continued high level of
business development activities, increased generation, and the associated higher
costs related to new capacity as we continue investing in renewable energy
production. I am pleased to see that we are expanding and refining our
development portfolio and completing assets under construction across our
regions. As we continue to invest in these projects and bring more capacity into
operation, this portfolio will set us up for continued profitable growth and
value creation."

Prices, market development, and generation

The average system price in the Nordic region was 19.9 EUR/MWh, down 15.4
EUR/MWh from the second quarter 2024 and down 7.8 EUR/MWh from the third quarter
last year. The fall in prices was due to high inflow, higher wind power
production and high reservoir levels in southern Norway, and lower continental
prices.

Average German base price was 76.0 EUR/MWh, down 14.9 EUR/MWh from the same
quarter last year, while up 4.2 EUR/MWh since the second quarter 2024. Power
prices dropped compared to last year due to lower carbon prices and despite
higher gas prices. Low prices in France driven by higher nuclear production
contributed to the fall.

Statkraft's generation was 13.3 TWh in the third quarter of 2024, 0.2 TWh higher
than the third quarter last year. The increase was primarily related to wind
power generation from new assets in Brazil and Spain, partly offset by lower
generation from Norwegian hydropower. Total wind power production was 2.5 TWh in
the third quarter (0.8 TWh), while hydropower production was 10.0 TWh (11.6
TWh).

Financial development

Operating expenses rose from the third quarter last year and were also slightly
higher than in the second quarter on an underlying basis mainly due to recently
added capacity. Salaries and payroll costs increased due to a higher number of
employees and salary adjustments, partly offset by lower performance related
remuneration in Markets.

Underlying EBIT was NOK 3.0 billion compared to NOK 4.9 billion in the same
quarter last year, primarily due to lower power prices, lower Norwegian
hydropower generation and hedging effects.

Nordics was the main contributor to the results with an underlying EBIT of NOK
2.1 billion (NOK 3.8 billion) despite lower power prices compared to last year.
Markets delivered a strong underlying EBIT of NOK 1.4 billion in the quarter
(NOK 0.9 billion), primarily related to the origination activities.

Europe had an underlying EBIT of NOK -0.5 billion (NOK 0.6 billion). Less
positive results from hedging activities as well as added wind power capacity
were the main reasons for the lower results from this segment.

International's underlying EBIT increased significantly in the quarter, mainly
due to termination of long-term power sales agreements, and recently added
capacity in Chile and Brazil starting commercial operation.

As of the third quarter 2024, Statkraft reports return on average capital
employed (ROACE) for assets in operation separately. These numbers do not
include items such as business development costs and assets under construction.
In Nordics, with mostly old hydropower plants, low book values due to
depreciation resulted in a high ROACE for assets in operation at 32.6 percent.

Assets in operation in Europe and International mostly constitutes recently
built and completed wind, solar and hydropower plants, with high book values,
resulting in a ROACE for assets in operation in Europe and International of 9.6
percent and 6.7 percent respectively in the last twelve months.

Focusing on fewer countries

Statkraft recently decided to divest the onshore wind, solar and battery
business in the Netherlands and Croatia. Over time, the hydropower and solar
assets in India will also be divested, as the company will focus its investments
on fewer markets to build scale and strengthen competitiveness and value
creation.

In Norway, Statkraft is progressing plans for the replacement of Svean power
plant in Central Norway for NOK 1.2 billion. The company also made the decision
to undertake upgrades and maintenance work for NOK 0.9 billion in the tunnel
system between Blåsjø reservoir and Saurdal power station. Statkraft continues
to develop five capacity projects in hydropower, and several new wind power
projects. In addition, Statkraft is developing plans for repowering of some
older wind farms in Norway, extending the lifetime of the assets by replacing
old turbines with new and more powerful ones.

Effective 1 January 2025, Statkraft will introduce an updated organisation and a
new corporate management to further support its sharpened strategy. A new
business area, named Technology and Project Delivery, will be responsible for
developing best-practise safety, and operations and maintenance standards, as
well as cost-effective delivery of construction projects, procurement services
and IT deliveries. The current Corporate Staff area will be restructured into
two new units, Corporate Development and the new People, Organisation and
Sustainability area, that will comprise the group functions corporate HR,
governance, compliance and sustainability.

For further information, please contact:

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

Media:
Media Spokesperson Lars Magnus Günther, tel: +47 912 41 636, e-mail:
lars.gunther@statkraft.com Vice President Torbjørn Steen, tel: +47 911 66 888,
e-mail: 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 around 7,000
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:
Access the news on Oslo Bors NewsWeb site

631509_2024-Q3 Interim Report.pdf
631509_2024-Q3 Presentation.pdf