Statkraft delivered strong 2024 results, driven by solid operations, record-strong energy management and continued high value-creation from market operations. Despite substantially lower power prices, the underlying EBIT is among the best in Statkraft's history.
Net operating revenues were NOK 53.7 billion in 2024 compared with NOK 65.3 billion in 2023, while underlying EBIT decreased to NOK 26.5 billion (NOK 41.4 billion), as power prices fell.
In 2024 the average system price in the Nordic region was down 21 EUR/MWh to 36 EUR/MWh, while the average German spot price (base) was down 15 EUR/MWh to 80 EUR/MWh in the same period.
Statkraft's total power generation was 66.3 TWh (61.9 TWh) in 2024. The seven per cent increase year-on-year was primarily related to new wind power assets in Brazil and Spain and higher generation from the gas-fired power plants in Germany. The hydropower generation in the Nordics was 0.7 TWh lower than in 2023.
- Reported EBIT was NOK 24.7 billion (NOK 48.5 billion)
- Net financial items were NOK -5.5 billion (NOK -1.0 billion), including currency effects of NOK -4.6 billion primarily due to a weakening of NOK. Profit before tax was NOK 20.6 billion in 2024 (NOK 51.0 billion), while net profit was NOK 7.0 billion (NOK 26.1 billion).
- The Board of Directors has proposed a dividend of NOK 8.8 billion for 2024.
Key events in 2024:
- Statkraft signed a record-high number of PPAs, including in Spain, Germany, Finland and Norway.
- Statkraft divested several wind and solar power projects, for a total of NOK 4.5 billion.
- In January, Statkraft announced plans for record-high investments in Norwegian hydro and wind power as well as several upgrade and maintenance projects.
- On 1 April, Birgitte Ringstad Vartdal assumed the CEO position of Statkraft.
- In May, Statkraft completed the acquisition of Spanish-based renewable energy company Enerfin, for a total consideration of NOK 18 billion.
- In October, Statkraft sharpened its strategy, and will prioritise investments in Norway, Europe, and South America going forward.
"Statkraft delivered one of our strongest annual results, only outperformed by results driven by the exceptionally high prices during the energy crisis. I am proud of the results the organisation has achieved in 2024, driven by solid operations, record-strong energy management and continued high value-creation in our market activities. We are investing heavily in maintaining and upgrading our Norwegian hydropower assets, while developing and optimising a portfolio of renewable energy projects to build scale and profitability in high-potential markets," says Statkraft President and CEO, Birgitte Ringstad Vartdal.
In 2024, Statkraft decided to sharpen its strategy, focusing on the Nordics, Europe and South America.
"Both the markets and the world around us are changing rapidly, making it more difficult to predict what the future will look like. While the underlying drivers of the energy transition continue to be strong and favourable for Statkraft, increased geopolitical uncertainty combined with record-high investment levels in 2023 and 2024 makes us prioritise even more strictly in the short term among projects in our large portfolio," Ringstad Vartdal adds.
Financial development
Operating expenses rose from 2023, mainly due to new generating assets coming into operation, a higher number of full-time employees and increased business development activity as the company has developed a large portfolio of renewable energy projects and an organisation ready to deliver on the growth strategy. New capacity coming online, mainly related to the Enerfin assets, also contributed to higher depreciations and amortisations.
Statkraft had a solid cash position of NOK 31 billion at the end of 2024. Cash inflow from a strong operating result was more than offset by taxes paid of NOK 20.6 billion, a record high investment level in 2024 as well as dividend paid to the owner of NOK 13 billion.
Underlying EBIT was NOK 26.5 billion compared with NOK 41.4 billion the year before, primarily due to lower power prices and lower Norwegian hydropower generation and continued strong results and value-creation in Markets.
Nordics was the main contributor to the results with an underlying EBIT of NOK 24.0 billion (NOK 31.4 billion), a solid result despite lower power prices and generation compared with 2023. Energy management was record-strong, highlighting Statkraft's robust and flexible Norwegian hydropower fleet.
Europe had an underlying EBIT of NOK -0.9 billion (NOK 4.1 billion). The main driver for the reduction is NOK 4.4 billion lower contributions from financial hedging than in 2023, driven by increased price difference between natural gas and electricity, and higher forward prices. In addition, business development costs increased by 1 billion compared to 2023.
International's underlying EBIT increased to NOK 0.6 billion in 2024 (NOK 0.5 billion), reflecting new wind power assets in Brazil and Chile.
Markets delivered a strong underlying EBIT of NOK 4.5 billion in 2024 (NOK 6.6 billion), primarily driven by continued strong results from the origination activities.
Statkraft's reported EBIT included NOK 5.2 billion in impairments mainly related to hydropower assets in Albania, India and Türkiye, due to lower expected future generation, as well as lower future prices and project delays in India. The results were also positively impacted by NOK 2.6 billion, as an earlier charge related to Baltic Cable was reversed.
Statkraft's return on average capital employed (ROACE) from assets in operation was 22 per cent in 2024, compared with 37 per cent in 2023. These numbers do not include items such as business development costs and assets under construction. ROACE from assets in operations from Nordics was 29 per cent in 2024. Solid energy management over time, combined with old hydropower plants with low book value, has led to a solid return from the segment.
Assets in operation in Europe and International mostly consist of recently built and completed wind, solar, and hydropower plants, with high book values and generation only during parts of the year, resulting in a ROACE from assets in operation in Europe and International of 6.6 per cent and 5.2 per cent respectively in the last twelve months.
Fourth quarter results
The underlying EBIT in the fourth quarter was NOK 5.1 billion, compared with NOK 11.6 billion in the fourth quarter in 2023. The decrease was mainly driven by lower power prices and lower generation.
Net profit was NOK 1.5 billion, compared with NOK 6.0 billion in the same quarter in 2023.
Cash flow from operating activities was NOK 2.0 billion, after taxes paid of NOK 2.7 billion in the quarter.
Prices, market development, and generation in the fourth quarter
The average system price in the Nordic region was 31.1 EUR/MWh, down 26.8 EUR/MWh from the same quarter in 2023 and up 11.2 EUR/MWh from the third quarter. The fall in prices was due to above normal precipitation and increased wind in the Nordics.
Average German base price was 102.8 EUR/MWh, up 20.5 EUR/MWh from the same quarter last year, while up 26.8 EUR/MWh since the third quarter 2024. Power prices increased as wind power generation in Germany was significantly lower, supported by higher gas prices.
Statkraft's generation was 19.3 TWh in the fourth quarter of 2024, 1.0 TWh higher than the fourth quarter last year. The increase was primarily driven by higher generation from Brazilian wind power, partly offset by lower hydropower generation in Norway and Sweden.
Norwegian markets were influenced by a milder climate than normal, resulting in lower consumption, higher inflow and increased reservoir levels. Nordic water reservoir levels were at 114 per cent of median by the end of December and is currently at 118 per cent of median, equivalent to 60.6 per cent of full capacity.
Key events in the fourth quarter:
- Statkraft decided to start construction of a new Svean hydropower plant in Central Norway with an estimated investment of NOK 1.2 billion.
- Final investment decisions were made for repowering of the wind farm Montes de Cierzo in Spain (62 MW), and for two grid stabilisers in Ireland, Coolkeeragh (74 MW) and Quarry Lane (67 MW)
- Statkraft started commercial operation of the Morro do Cruzeiro wind farm (79.8 MW) in Brazil.
- Energy management was record-strong, particularly in Norwegian hydropower.
- Statkraft signed several PPAs, including a 15-year downstream hydro and wind PPA with the Finnish energy company Suomen Voima with a contract volume of 100 GWh p.a.
- Statkraft divested Enerfin's US operations.
- Statkraft divested the Moanvane wind farm (58 MW) in Ireland for NOK 1.3 billion with a gain of NOK 275 million.
The annual report for Statkraft AS Group for 2024 has been approved by the Board of Statkraft AS.
Note: Statkraft does not publish a separate external report for the fourth quarter as the annual report is disclosed together with this stock exchange notice. Selected statements for the fourth quarter are attached as an appendix.
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.
Attachments
- Statkraft AS - Annual Report 2024 (https://ml-eu.globenewswire.com/Resource/Download/44f55fd8-373f-4ebd-bec3-560276477bfa)
- Statkraft AS - Selected financial statements Q4 2024 (https://ml-eu.globenewswire.com/Resource/Download/00a19f41-7b4a-41e5-9c16-67292f01d999)
- Statkraft AS - Presentation (https://ml-eu.globenewswire.com/Resource/Download/4bcb5734-0441-4be1-8d05-e9311a1bc722)
