Falling power prices weigh on Statkraft's Q1 results

Norwegian state-owned utility Statkraft AS has seen its after-tax profit slip by 33.4% year-on-year in the first quarter of 2024 to NOK 6.78 billion (USD 620m/EUR 577m), it announced on Tuesday.

The company explained its performance with a decline in power prices and lower hedging gains, which were only partly offset by higher power generation and the reversal of a provision for the Baltic Cable transmission line between Sweden and Germany.

“I am satisfied with the strong results despite much lower power prices in the first quarter. We are well positioned with a solid and scalable business model that provides us with the flexibility needed to quickly adapt to changing market conditions," said CEO Birgitte Ringstad Vartdal.

Investments in the reporting quarter amounted to NOK 4 billion, of which NOK 2.6 billion was allocated to new power generation capacity, grid service and battery projects.

In the three months through March, Statkraft generated 19.4 TWh of electricity from its hydro, wind, biomass and solar power plants, an increase from 17.5 TWh a year ago. The company’s hydroelectric plants were the major contributor, accounting for 17.2 TWh of the total and lifting their output from 15.6 TWh.

(NOK 10 = USD 0.914/EUR 0.851)

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