Statkraft AS - first quarter 2010

Increased energy prices and production

(Oslo, 20 May 2010) Statkraft's underlying operating profit¹ for the first quarter of 2010 amounted to NOK 5 493 million (NOK 3 943 million)². The company's underlying profit before tax amounted to NOK 5 375 million (NOK 3 485 million).  The profit is attributed to increased demand and higher energy prices in the Nordic region, compared with the same period in 2009. However, lower than average water reservoir levels indicate reduced production in the time ahead.

"The result shows Statkraft's ability to adapt to a variable energy markets. Production in 2009 was relatively low, as a result of the economic decline in energy-intensive industry. However, in the period from December last year to February this year, production was well above our normal level, spurred by cold weather, increased demand and high energy prices," says CEO Christian Rynning-Tønnesen.

"The high production and dry weather has, however, resulted in lower than average water reservoir levels. We will therefore restrict our water use somewhat in the time ahead, and are expecting lower short-term production," Rynning-Tønnesen says. 

Statkraft generated 18.4 TWh (17.1) in the first quarter. Gas power contributed to increased production, whilst production from hydropower plants remained at the same level as in the same period last year. Hydropower production in January and February was, however, significantly higher than normal. Combined with dry weather, this resulted in lower reservoir levels. Temperatures rose again from March onwards, reducing demand. At the same time, two Swedish nuclear power production plants resumed operation. Hence, Statkraft's hydropower production in March was reduced.

At the end of March, the overall water level in the Nordic region's reservoirs was 62.7 per cent of normal levels, corresponding to 27.9 TWh.

The average system price in the Nordic market was substantially higher in the first quarter of 2010 than in the corresponding period in 2009, ending at 59.8 EUR/MWh (38.2 EUR/MWh). At the same time, the average spot price in the German market was lower in the first quarter, at 41.1 EUR/MWh compared to 47.4 EUR/MWh last year.

Statkraft generated gross operating revenues of NOK 10 507 million (NOK 8 031 million) in the first quarter. The reported accounts are impacted by unrealised changes in value and the reported profit for the first quarter of 2010 was NOK 7 492 million before tax (NOK 4 348 million), and NOK 4 532 million after tax (NOK 2 723 million). 

Statkraft is the European leader in renewable energy. The Group develops and produces hydropower, wind power, gas power and district heating, and is a major player on the European energy exchanges. Statkraft also develops marine energy, osmotic power, solar power and other new energy solutions. Through ownership in other companies, the Group supplies power and heating to about 600 000 customers in Norway. The Group's sales amounted to NOK 26 billion in 2009. Statkraft has more than 3400 employees in more than 20 countries.

For further information:

Executive vice president/CFO Stein Dale, tel.: +47 24 06 72 11 / +47 450 02 111

Vice president investor relations Yngve Frøshaug, tel.: +47 24 06 78 76 / +47 900 23 021

Executive vice president Ragnvald Nærø, tel.: +47 24 06 71 00 / +47 900 80 303

or www.statkraft.no

¹ Adjusted for unrealised changes in value and significant non-recurring items.

² Figures in parentheses show comparable figures for the corresponding period in 2009. 

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)