Norwegian Statkraft Writes down German Power Plants

Norwegian power producer Statkraft recorded an underlying operating profit (EBITDA) of Nkr2.665bn ($313mn), an increase of Nkr303mn compared with the corresponding period in 2015. The quarter showed a net loss of Nkr1.899bn which was mainly due to impairments of German assets, it said July 21.

The average Nordic power price in the second quarter was €24.0/MWh. This is on the same level as the first quarter, but an increase of 16% compared with the corresponding quarter in 2015. Statkraft's total production was in line with the same period last year and amounted to 14.3 TWh.  

Christian Rynning-Tonnesen

Reduced market expectations have led to impairments related to gas fired power plants and other assets in Germany which in total amount to Nkr2.229bn.The remaining book value of these assets is Nkr1.423bn. “We are pleased with strong underlying operations, but reduced market expectations have led to impairment of German assets," said CEO Christian Rynning-Tonnesen.

Continental and Nordic power markets alike are undergoing changes with reduced technology cost and new renewable capacity coming online combined with low demand growth. This development has contributed to a decline in power prices.

Statkraft has launched a performance improvement programme with the aim of cutting controllable costs by 15% or about Nkr800mn by 2018.

William Powell