Strong hydropower output in the Nordic region helped Statkraft achieve its highest-ever annual electricity generation in 2025, as the company reported robust fourth-quarter operational performance and record overall production.
Europe’s largest renewable power producer generated 72.1 TWh of electricity in 2025, surpassing 70 TWh for the first time in the company’s history. Hydropower remained the dominant source of generation, with 51.2 TWh produced in Norway alone.
Fourth-quarter generation reached 19.4 TWh, the highest level Statkraft has recorded for a fourth quarter, reflecting strong hydropower availability in the Nordic region and improved power prices.
“Statkraft delivered strong underlying results in the fourth quarter, supported by higher prices, high production, and solid performance in the Nordics,” said Birgitte Ringstad Vartdal, President and CEO of Statkraft.
Hydropower continued to underpin Statkraft’s operational performance during the year, particularly in Norway and the wider Nordic market, where high reservoir levels and favourable hydrological conditions supported strong production levels.
The Nordic segment delivered the strongest results in the fourth quarter, benefiting from higher realised power prices and strong hydropower generation. Hydropower’s flexibility also played a key role in balancing the regional power system during periods of fluctuating demand and renewable output.
Higher production also contributed to increased taxation. Statkraft reported that elevated tax costs during the year were partly due to Norway’s resource rent tax on hydropower, which rises with production and profitability.
Statkraft reported underlying EBITDA of NOK 8.3bn in the fourth quarter, up from NOK 7.1bn in the same period of 2024.
For the full year, underlying EBITDA reached NOK 26.8bn. However, the company reported a net loss of NOK 0.4bn for 2025, compared with a profit of NOK 7.0bn the previous year. The loss reflects lower power prices earlier in the year, impairments, and higher tax costs.
Profit before tax was NOK 4.3bn in the fourth quarter and NOK 11.4bn for the full year.
Return on average capital employed from assets in operation reached 17.0% in 2025, compared with 22.4% in 2024, reflecting strong returns from Nordic hydropower assets and lower returns from newer renewable projects in Europe and international markets.
Portfolio focus and investment
During 2025, Statkraft continued to streamline its portfolio and focus investments on core renewable technologies, including hydropower, wind and solar.
The company signed agreements to divest non-core assets with an enterprise value of NOK 15.8bn, while implementing cost reductions and reducing headcount. These measures helped reduce net debt by NOK 12bn, strengthening the company’s financial position.
“I am pleased that we have now largely completed our planned divestments of non-core assets and are on track with our cost reductions,” Vartdal said.
Statkraft also discontinued development of new hydrogen projects and additional offshore wind activities, prioritising investment in core generation assets and selected markets.
Total investments during the year reached NOK 18bn, primarily in the Nordics and Europe. Final investment decisions were taken on projects representing 722MW of new renewable capacity, while 700MW was brought into operation.
While Nordic hydropower supported strong results, other business areas faced more challenging conditions.
Statkraft’s European operations were affected by lower power prices and weaker margins at gas-fired plants in Germany, while the International segment saw lower results due to higher curtailment of wind assets and reduced hydropower availability in Brazil.
The Markets segment reported improved results during the quarter, supported by stronger performance in energy origination activities.
