The Group posted pre- and post-tax profits of NOK 5,732 million (NOK 3,550 million) and NOK 3,856 million (NOK 2,654 million) respectively. Following adjustment for unrealised changes in value and material non-recurring items, pre-tax profits totalled NOK 4,555 million (NOK 3,499 million) with profits after tax totalling NOK 2,997 million (NOK 2,633 million).
Work continued during the first quarter of the year in connection with the letter of intent entered into with E.ON AG, which involves Statkraft exchanging its holding in E.ON Sverige for flexible production assets and shares in E.ON AG. It is anticipated that a final agreement will be signed during the first half of 2008.
Commercial operation of the gas-fired power plant in Knapsack, Germany commenced on 16 January. In February, the German authorities announced the final allocation of carbon quotas for the German gas-fired power plants during Phase 2 (2008-2012). Volumes for both plants were set at 84.4%.
In March, Statkraft resolved to proceed with the development of the Blaengwen Wind Farm in Wales. Statkraft and the American corporation Catamount each own 50 percent of the wind farm, which will have an installed capacity of 23 MW.
Statkraft has entered into an agreement with the government of Republika Srpska, part of Bosnia-Herzegovina, of which the initial phase covers planning work in relation to the development and construction of hydropower plants.
The Group has adopted a new strategy in relation to its commitment to wind power that, among other things, will lead to increased focus on the development and construction of offshore wind farms in the North Sea Basin. In March, Statkraft signed a cooperation agreement with NorWind in relation to offshore wind power. Under this agreement, NorWind is to complete a concept study for a large-scale, fixed-base offshore wind farm.
At the end of March, Statkraft and its joint venture partner Norsk Solkraft was granted a licence to develop a 3 MW photovoltaic solar energy plant in Italy.
The first quarter also saw the commencement of processes aimed at bringing about the merger of the Group's various activities within the areas of power sales, district heating and metering and billing. The goal is to establish national business models within these individual areas of operation.
Retail electricity providers Fjordkraft and Trondheim Energi have introduced UN-recognised climate quotas within the private sector market and for customers who wish to ensure that their business activities are carbon neutral.
The purpose of Statkraft SF is to own all the shares in, and provide loans to, Statkraft AS. In addition, Statkraft SF owns certain assets that for technical reasons may not be owned by Statkraft AS. This applies to power plants that have reverted to state ownership and are leased to third parties and to plants that will be owned by Statkraft on reversion to state ownership, together with certain overseas commitments (Asian Power Invest AB and Nordic Hydropower AB).
The consolidated financial statements for Statkraft SF will, with the exception of the retained assets and individual items on the liabilities side, be identical with the consolidated financial statements for the Statkraft AS sub-group.
In the closing balance sheet for the first quarter of 2008, the value of the total assets of Statkraft SF was NOK 103 million greater than that of the total assets of the Statkraft AS Group. The book value of the leased power plants and the overseas commitments amounted to NOK 947 million.
The long-term interest-bearing liabilities of the Statkraft SF Group were NOK 2,750 million higher than those of the Statkraft AS Group, as a consequence of the borrowing by Statkraft SF of NOK 3 billion under an established line of credit in order to finance the dividend payment for the financial year 2004. At the end of the first quarter, interest-bearing liabilities amounted to NOK 39,739 million, compared to NOK 40,034 million at the end of 2007. The interest-bearing debt ratio was 46.6%, as against 49.0% at the end of 2007. Current assets, excluding cash and cash equivalents, totalled NOK 13,870 million and short-term interest-free liabilities amounted to NOK 18,397 million.
The differences between the respective income statements of Statkraft SF and Statkraft AS primarily concern revenues and expenses associated with the ongoing operation of the retained assets. These differences are relatively modest.
Contacts:
Stein Dale, CFO, tel.: +47 24 06 72 11 / +47 450 02 111
Yngve Frøshaug, VP Investor Relations, tel.: +47 24 06 78 76 / +47 900 23 021
