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Investing.com -- Statkraft on Tuesday reported strong operational performance in the second quarter of 2025 despite facing lower power prices, particularly in northern Norway and Sweden.
The company’s net results were negatively impacted by NOK 3.0 billion in impairments related to its Swedish and Norwegian onshore wind portfolio, primarily due to lower estimated future power prices in these regions.
"Statkraft had high power generation and record-high realised price-margin contributing to strong operational performance in the quarter," said President and CEO Birgitte Ringstad Vartdal.
The company has announced a strategic refocus to strengthen core activities, optimize its portfolio, and reduce costs and complexity.
This decision comes as the energy sector faces challenges from lower prices following the post-Ukraine war peak, increased costs per MW across technologies, higher financing costs, and extraordinary global uncertainty.
As part of this strategy, Statkraft is reducing its international footprint by selling development activities in several countries.
Statkraft is also reducing its technology portfolio by seeking new owners for district heating operations and working to bring new investors into its biofuels and EV charging businesses.
The company has decided to stop new development of green hydrogen projects and further offshore wind activities, except for the North Irish Sea Array project.
The company aims to decrease complexity and reduce costs by around NOK 2.9 billion annually by 2027, representing a 15% reduction compared to 2025 estimates. Operating expenses stabilized in the first half of 2025, remaining at the same level as the first half of 2024.
Statkraft’s investment ambition is NOK 16-20 billion per year, focusing on hydropower capacity upgrades in Norway and onshore wind power developments in Norway and Sweden.
The company will continue growth in solar, wind, batteries, and grid services in Europe and South America, but at a lower rate than previously planned.
In the second quarter, the average Nordic system price was 26.5 EUR/MWh, down from 35.3 EUR/MWh in the same quarter last year. The German market price averaged 69.8 EUR/MWh, slightly down from 71.9 EUR/MWh a year earlier.
The company reported underlying EBITDA of NOK 4.5 billion for the quarter, down from NOK 6.5 billion in the same period last year.
Total (EPA:TTEF) impairments reached NOK 6.3 billion, resulting in a profit before tax of NOK -5.1 billion and a net profit of NOK -6.5 billion.
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