Statkraft Releases 2024 Results Amid Challenging Power Price Environment

Highlights:

• Robust 2024 Performance: Strong operations and record energy management drive resilient results despite lower power prices.
• Financial Metrics: Net operating revenues at NOK 53.7 billion and underlying EBIT at NOK 26.5 billion.
• Generation Increase: Total power generation rose to 66.3 TWh, fueled by new wind assets and increased gas-fired output.
• Strategic Initiatives: Record PPAs, major divestments, Enerfin acquisition, and a sharpened investment focus.
• Fourth Quarter Developments: Notable capital projects and revised pricing dynamics in both Nordic and German markets.

Statkraft (76AY) has announced strong performance for 2024, driven by solid operations, record energy management, and continued value creation from market activities—even as power prices dropped significantly. The company reported net operating revenues of NOK 53.7 billion, down from NOK 65.3 billion in 2023, with the underlying EBIT declining to NOK 26.5 billion from NOK 41.4 billion due to lower power prices. Despite this, Statkraft’s performance remains among the best in its history, demonstrating its resilient business model.

In 2024, the average system price in the Nordic region fell by 21 EUR/MWh to 36 EUR/MWh, while the average German spot price decreased by 15 EUR/MWh to 80 EUR/MWh. These price adjustments, however, did not hamper the company’s ability to increase its total power generation to 66.3 TWh from 61.9 TWh, marking a 7 percent year-on-year improvement. This boost was largely driven by the addition of new wind power assets in Brazil and Spain, along with increased output from gas-fired power plants in Germany, even as hydropower generation in the Nordics dropped by 0.7 TWh.

Financially, Statkraft’s reported EBIT came in at NOK 24.7 billion compared with NOK 48.5 billion the previous year. Net financial items worsened to NOK -5.5 billion from NOK -1.0 billion, mainly due to NOK -4.6 billion in currency effects from a weakening NOK. Consequently, profit before tax declined to NOK 20.6 billion from NOK 51.0 billion, and net profit fell to NOK 7.0 billion versus NOK 26.1 billion. Reflecting its confidence in the underlying fundamentals, the Board of Directors has proposed a dividend of NOK 8.8 billion for 2024.

The year also saw a series of strategic milestones. Statkraft signed a record number of Power Purchase Agreements (PPAs) across Spain, Germany, Finland, and Norway. The company divested several wind and solar power projects worth a total of NOK 4.5 billion. In January, Statkraft announced plans for record-high investments in Norwegian hydro and wind power, along with extensive upgrade and maintenance projects. On 1 April, Birgitte Ringstad Vartdal assumed the CEO role, marking a new chapter in leadership. In May, the acquisition of Spanish-based renewable energy company Enerfin for NOK 18 billion further bolstered its growth strategy. By October, Statkraft had refined its strategic focus, prioritising investments in Norway, Europe, and South America.

Operating expenses increased compared to 2023, largely due to new generating assets, a higher headcount, and expanded business development efforts as the company built a robust portfolio of renewable projects. New capacity—especially from Enerfin’s assets—also led to higher depreciation and amortisation charges. Despite these rising costs, Statkraft ended 2024 with a strong cash position of NOK 31 billion. However, strong operating cash inflows were offset by record tax payments of NOK 20.6 billion, significant investments, and dividend disbursements totaling NOK 13 billion.

In the fourth quarter, underlying EBIT fell to NOK 5.1 billion from NOK 11.6 billion, with net profit dropping to NOK 1.5 billion. The quarter was marked by lower power prices in the Nordics, where the average system price stood at 31.1 EUR/MWh, while German prices increased due to reduced wind generation. Key events included the commencement of construction on the new Svean hydropower plant in Central Norway, investment decisions for repowering the Montes de Cierzo wind farm in Spain and grid stabiliser projects in Ireland, as well as the commercial launch of the Morro do Cruzeiro wind farm in Brazil.