Report from the Board of Directors

Statkraft’s power generation reached a record-high 66 TWh in 2016. The average Nordic system price was also 28% higher than the very low level in 2015. Combined with successful energy management and higher contribution from International hydropower, this led to a solid underlying EBITDA of NOK 13.9 billion. 2016 was negatively influenced by impairments, mainly caused by reduced market expectations, and partly offset by positive currency effects. Net profit before tax was NOK 5.2 billion and net profit after tax ended at NOK -179 million.