Statkraft - first half 2002

Press release

 

(Oslo, 4 Sept. 2002) In the first half of 2002, Statkraft Group's pre-tax income was NOK 1,771 million compared to NOK 2,331 million in the same period last year. After tax the result was NOK 1,167 million compared to NOK 1,675 million in the first half of 2001. The result was strongly affected by lower electricity prices.

 

Statkraft's gross operating revenues in the first half of the year amounted to NOK 4,683 million. This is NOK 977 million more than in the preceding year and is a result of consolidating Skagerak Energi AS with effect from October 2001 and Trondheim Energiverk AS with effect from January 2002. The subsidiaries contributed a total of NOK 1,773 million to group revenues in the first half of the year, a rise of NOK 1,370 million compared to the same period last year.

 

Operating income in the first half of the year amounted to NOK 2,105 million, a decline of NOK 60 million compared to the first half of 2001.  The associated companies Bergenshalvøens Kommunale Kraftselskap AS, Hedmark Energi AS, E-CO Vannkraft AS and Sydkraft AB contributed a total of NOK 540 million.

"Consolidated companies and the subsidiaries made a positive contribution, but we still have some way to go before we reach the rates of return we are looking for", says Bård Mikkelsen, Statkraft's President and Chief Executive Officer.

 

Lower prices, higher production

Abundant rain, high temperatures and lower consumption resulted in an average system price in the Nordic market of NOK 0.144 per kWh in the first half of the year compared to NOK 0.202 per kWh in the preceding year. 

 

 

 

 

 

 

Statkraft Group produced 22.3 TWh in the first half of this year, a rise of 4.8 TWh on the year before. The parent company, Statkraft SF, produced 18 TWh or 0.5 TWh more than in the first half of 2001. Subsidiaries contributed 4.3 TWh in production. Industrial contracts and licence power at politically determined prices accounted for 9.9 TWh or 54 per cent of the parent company's revenues.

 

Acquisitions

In the first half of 2002, Statkraft used NOK 6,850 million on purchasing interests in other companies. In January 2002, Statkraft acquired all the shares in Trondheim Energiverk AS. In July, the Norwegian Competition Authority refused to approve the acquisition, but this decision has been appealed to the Ministry of Labour and Government Administration.

 

In February 2002, Statkraft increased its stake in Bergenshalvøens Kommunale Kraftselskap from 26 per cent to 49.9 per cent and in March the ownership interest in the Swedish company Sydkraft rose from about 36 per cent to 44.6 per cent.

 

In 2001, Statkraft agreed to purchase 45.5 per cent of the shares in Agder Energi AS. The Competition Authority did not approve the acquisition, but this decision is also appealed to the Ministry of Labour and Government Administration. The Ministry is expected to decide on the matter before the end of September, and its decision will be of great importance to Statkraft's future activities.

 

Prospects

"Even though inflow and market conditions for the remainder of the year are about what they are in a normal year, Statkraft expects the result of its ordinary operations to be somewhat lower than in 2001. However, the power market is volatile and there is therefore considerable uncertainty surrounding the development in the financial results", says Mikkelsen.

 

 

Statkraft is Norway's largest producer of electric power. The company's own production capacity is a good 42 TWh p.a., or about 1/3 of the country's total hydropower production. Statkraft has a staff of about 2,500, including the subsidiaries Skagerak Energi, Trondheim Energiverk and Statkraft Grøner. The company is Norway's largest land-based taxpayer. Statkraft has ownership interests in the following Norwegian energy companies: BKK, HEAS, E-CO Vannkraft and Fjordkraft, and it has agreed to purchase part of Agder Energi.