Record-high production, strong results

08 May 2025 08:00 CEST

(Oslo, Norway, 8 May 2025) - Statkraft continued to deliver strong underlying
results in the first quarter of 2025. Despite lower power prices, power
generation was record-high. The start of construction on the new Svean
hydropower plant marked the beginning of Statkraft's development and upgrade
programme in Norwegian hydro and wind power, followed by further investment
decisions and licence applications.

* Power generation in the first quarter 2025 was record-high for a single
quarter at 21.7 TWh, an increase of 12 per cent from 19.4 TWh in the same
quarter 2024.
* Net operating revenues were NOK 15.8 billion in the first quarter 2025
compared to NOK 19.6 billion in the comparable quarter last year.
* Underlying EBITDA fell to NOK 10.9 billion (NOK 15.1 billion), while
underlying EBIT decreased to NOK 9.0 billion (NOK 13.5 billion).
* Net profit was NOK 6.8 billion (NOK 6.8 billion).
* Power prices fell by 21 per cent in the Nordic region in the quarter and
rose 67 percent in Germany compared to the same quarter last year.
* Baltic Cable AB and Equitix signed an agreement to acquire Greenlink
Interconnector, with Statkraft's minority interest estimated to be around
NOK 2.2 billion.
* Statkraft signed two new long-term industry contracts with Alcoa Norway,
with a total delivery of up to 1800 GWh.

In the first quarter of 2025, Statkraft commenced its investment programme in
Norwegian wind and hydropower.

* Work officially started on the new Svean power plant redesign project with
estimated investments of NOK 1.2 billion.
* Statkraft made the investment decision for the Blåsjø-Saurdal headrace
tunnel construction, with estimated investments of NOK 900 million.
* Statkraft submitted a licence application for the Moifjellet wind power
project with an expected investment of around NOK 4 billion.
* On 2 May, Statkraft announced a licence application for an upgrade of the
Nore hydropower plant with an expected investment of around NOK 4 billion.
* Statkraft also made notable progress on many other Norwegian hydropower
projects, including Alta, Aura, and Mår.

"In the beginning of 2025 construction works started on the new Svean hydropower
project - marking the first step in delivering on our capacity upgrade and
modernisation programme in Norway. We also decided to invest in the Blåsjø-
Saurdal headrace tunnel, and submitted licence applications for the Moifjellet
wind farm, as well as the upgrade of the Nore hydropower plants. Together, these
plans can ensure that we can continue supplying the Norwegian industry and
society with electricity for another hundred years," says Statkraft President
and CEO, Birgitte Ringstad Vartdal.

Prices, market development, and generation

The average system price in the Nordic region was 46.0 EUR/MWh in the first
quarter 2025, down 12.3 EUR/MWh from the first quarter 2024 and up 14.9 EUR/MWh
from the fourth quarter. The prices decreased mainly due to mild weather and
inflow above normal levels. The price area differences increased both in Sweden
and Norway, primarily due to differences in precipitation between northern and
southern areas.

The average base price in the German market (EEX) was 112.5 EUR/MWh in the
quarter, up 44.9 EUR/MWh from the same quarter last year, and up 9.7 EUR/MWh
since the fourth quarter. The increase was mostly explained by significantly
higher European gas prices, lower wind power generation in Germany and increased
CO2 prices.

Statkraft's generation was 21.7 TWh in the first quarter of 2025, 2.3 TWh higher
than the first quarter last year and the highest ever recorded for a single
quarter. The increase was mainly due to higher generation in high price areas in
Norway and new wind farms coming in operation in Brazil and Spain. Higher spark
spreads (margin between power and gas prices) and longer periods with positive
spark spreads lead to increased generation from gas-fired power. Total wind
power production was 2.3 TWh in the first quarter (1.7 TWh), while hydropower
production was 18.2 TWh (17.2 TWh).

"Statkraft delivered another quarter with strong underlying results, despite
lower prices. The power generation was 21.7 TWh in the quarter, the highest ever
recorded in Statkraft's history. Higher volumes demonstrate our strong
operations and maintenance capabilities, the role of our flexible hydropower
fleet, as well as new wind power investments in Spain and Brazil starting to pay
off. The contribution from energy management continued to be record-high at the
end of the quarter, with strong contribution from ancillary services that are
needed when the energy system becomes more complex," adds Vartdal.

Financial development

Underlying EBITDA was NOK 10.9 billion in the first quarter (NOK 15.1 billion),
while underlying EBIT was NOK 9.0 billion compared to NOK 13.5 billion in the
same quarter last year. The results from energy management and power generation
were strong. The decrease was primarily due to significantly lower power prices,
lower contribution from hedging of assets, as well as lower contribution from
trading and origination.

Nordics was the main contributor to the results with an underlying EBITDA of NOK
9.1 billion (NOK 12.7 billion). Excluding a reversal of a provision resulting in
a positive impact of NOK 2.6 billion in the first quarter last year, the
underlying EBITDA decreased by NOK 1.1 billion.

Markets delivered an underlying EBITDA of NOK 0.2 billion in the quarter (NOK
1.4 billion), mainly as the contribution from Trading and Origination was lower
than the very strong results in the first quarter 2024. Geopolitical uncertainty
contributes to a more challenging market environment for both activities.

The contribution from Europe and International improved, mostly due to
production capacity following newly acquired assets and constructed assets
coming in operation.

Reported EBIT was NOK 6.8 billion in the quarter (NOK 15.5 billion), including
NOK -2.0 billion in unrealised value changes from embedded EUR derivatives
(compared to NOK 2.0 billion in positive effects in the same quarter last year).

Despite a significant drop in EBIT, the net profit of NOK 6.8 billion was
unchanged from the same period last year. This stability was primarily due to
positive currency effects of NOK 3.1 billion under financial items (NOK -2.7
billion). In addition, lower tax expense also contributed to maintaining the net
profit.

Return on average capital employed (ROACE) for assets in operation in Nordics
for the last twelve months, containing mostly old and depreciated hydropower
plants at low book values, fell to 24.2 percent in the first quarter (37.1),
primarily due to the significantly lower power prices. ROACE for assets in
operation in Europe and International were 6.4 and 6.1 percent respectively.
These numbers do not include items such as business development costs and assets
under construction. ROACE for Europe and International are overall in line with
expectations following many new built and acquired assets and higher book
values.

Sharpening strategy and adapting to market changes

Last year, Statkraft decided to sharpen the strategy, focusing on fewer
technologies and markets to build scale and strengthen competitiveness and value
creation. This includes divesting the onshore wind, solar and battery business
in the Netherlands and Croatia, and the hydropower and solar assets in India, as
well as divesting the district heating business and finding new investors in the
biofuels company Silva Green Fuel and the EV charging company Mer. Statkraft has
already divested the Enerfin US portfolio following last year's acquisition of
Enerfin, and will divest Enerfin's businesses in other non-core countries. These
processes are ongoing.

Due to increased uncertainty in the market, Statkraft has decided to stop new
development of green hydrogen projects.

While the underlying drivers remains strong and the energy transition continues,
the state of the energy markets and geopolitical environment has become more
volatile. Statkraft continues to adapt to these changes and is assessing
strategic and operational adjustments in our ongoing annual strategic review due
in June to ensure that the company creates the highest possible return for the
owner over time in a sustainable manner.

"As we mark Statkraft's 130th anniversary this year, we are keeping a long-term
perspective while we manage through these turbulent and uncertain times.
Although the ongoing geopolitical challenges might delay the energy transition,
it will not stop it. The long-term drivers behind the transition are strong, but
Statkraft will continue to adapt our activities in light of the uncertainty and
the fact that we currently have more profitable renewables projects than we have
funding for. Developing a flexible portfolio based on our competitive strengths
and prioritising the best projects to invest in is thus a key priority," 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
Senior Financial Advisor Arild Ratikainen, tel: +47 971 74 132, e-mail:
arild.ratikainen@statkraft.com

Media:
Corporate Media Relations Lead Lars Magnus Günther, tel: +47 912 41 636, e-mail:
lars.gunther@statkraft.com
VP External Communications 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:
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645680_2025-Q1 Statkraft AS - Interim Report.pdf
645680_2025-Q1 Statkraft AS - Presentation.pdf