Statkraft, one of Europe's leading renewable energy companies, reported its financial performance for 2023, revealing its second-highest result on record despite a significant decrease in power prices compared to the previous year. The company's net operating revenues stood at NOK 65.3 billion, a decrease from NOK 75.3 billion in 2022. This drop was primarily attributed to lower power prices, which led to a decrease in underlying EBIT to NOK 41.4 billion from NOK 54.4 billion in 2022. Profit after tax also declined to NOK 26.1 billion compared to NOK 28.6 billion the previous year.
In an effort to expand its renewable energy portfolio, Statkraft announced plans to acquire Spanish-based Enerfin for approximately NOK 21 billion. This acquisition includes a significant wind power platform, with operations and projects totaling 1500MW. However, the company intends to divest Enerfin's portfolio in certain markets, including Canada, the US, Colombia, and Australia, focusing instead on core markets in Spain and Brazil.
Additionally, Statkraft revealed ambitious investment plans of up to NOK 67 billion in capacity upgrades, transformations, and rehabilitation of Norwegian hydropower plants. The company expects to add 1500-2500MW in installed hydropower capacity in addition to a minimum of 2.5 TWh wind power generation. All investments are dependent on grid access, permitting, and good solutions with local stakeholders and interests, including reindeer husbandry groups.
The company also secured several long-term agreements with industrial partners and expanded its presence in international markets, including signing its first long-term power contract in the US.
Following the announcement of CEO Christian Rynning-Tønnesen's resignation after nearly 14 years of service, the company initiated the process to find a successor. Meanwhile, Rynning-Tønnesen emphasized the company's commitment to delivering renewable energy solutions and maintaining a strong project pipeline. "We are on target to deliver our share of the renewable energy that the world needs, with a steadily increasing pipeline of projects and an organisation fit for the challenge," he said.
Despite challenges in certain segments, such as lower Nordic power prices impacting revenues in the Nordics, Statkraft reported positive developments, including increased wind power generation in Brazil contributing to growth in the International segment.
Looking at the fourth quarter of 2023, Statkraft faced various market dynamics, including high consumption and low wind power generation in Norwegian markets, and falling European power prices driven by lower gas and coal prices.
In terms of strategic moves, Statkraft made significant acquisitions and investment decisions, including acquiring wind farms in Brazil and the Red John pumped hydropower storage development project (450MW) in the UK. It is also initiating feasibility studies for a 1200MW pumped storage plant in Albania.
