Norwegian state-owned energy company Statkraft reported good results in the third quarter (Q3) of fiscal 2021 (FY21), thanks to higher electricity prices and better hydropower production.
In the three months leading up to September, the company’s underlying profit before interest and taxes (EBIT) was 4.6 billion crowns ($ 540 million).
This figure represents an increase of Nkr 3.5 billion from the Nkr 1.1 billion reported in the same quarter a year earlier.
Statkraft’s net profit increased by Nkr 3.7 billion year-on-year to Nkr 5 billion in the third quarter of 2021.
The benchmark price for electricity from the Nordic system also increased during the quarter, averaging around â¬ 68.5 / MWh, compared to â¬ 9 / MWh in the third quarter of 2020.
The company’s electricity production amounted to 15.3 TWh, up 0.7 TWh over one year.
Despite this, the turbulence in the energy market had a negative impact of SEK 4 billion on Statkraft’s profits due to losses and the negative effects of forward sales.
The cash flow from operating activities of the company amounted to SEK 9.9 billion.
Christian Rynning-TÃ¸nnesen, CEO of Statkraft, said: âHigh electricity prices in the Nordic countries and very high Norwegian hydropower production led to strong EBIT in the third quarter.
âThe good results have a positive impact on our investment capacity and provide us with a solid financial base to continue our growth path and reinvest in renewable energies, thus contributing to the energy transition. ”
Statkraft produces hydroelectric, wind and solar power, as well as gas power. The company is one of the largest producers of renewable energy in Europe.
In September, the company signed an agreement to sell a portfolio of four collocated solar farms in Cadiz, Spain, to The Renewables Infrastructure Group (TRIG).
Statkraft will retain responsibility for the construction of the four solar parks, which will have a total operational capacity of 234 MWp.
The company began building them in September, and completion is expected in the fourth quarter of next year.