Statkraft Focuses on Making the Best of Existing OW Assets
In its Q4 2015 results, Statkraft said it will focus on managing positions in offshore wind to maximise the value of existing assets and projects, as there will be no new investments in offshore wind.
Statkraft's investment capacity has been reduced as a result of a revised dividend policy from the Norwegian State. "As a consequence of the reduced investment capacity, Statkraft will no longer invest in new offshore wind projects. Some international hydropower projects will also be postponed," said Christian Rynning-Tønnesen, the company's president and CEO.
Statkraft owns 40% of the Sheringham Shoal offshore wind farm, a fully operational wind farm off the UK's coast. The company said it will evaluate its future ownership strategy later on. Dudgeon offshore wind project, in which Statkraft holds a 30% share, also remains part of the company's portfolio, and Statkraft will comply with all commitments and finance its share.
As for the Triton Knoll project, the company said it will participate in the development, but without investing further. Statkraft also has a 25% share in the planned 4.8 GW Dogger Bank projects, but will not invest in them, even though the development of the projects continues.
Statkraft's Q4 underlying EBITDA was NOK 2.85 billion (approx. EUR 300 million), NOK 640 million (approx. EUR 67 million) lower than in the same quarter in 2014. The decline in underlying EBITDA was primarily caused by the deconsolidation of the offshore wind farm in the UK and lower Nordic power prices, partly offset by good wind conditions and new production capacity in Sweden, the company reported.
Total production was 15.4 TWh, which is on a level with the same period last year. Reduced hydropower production in Norway was counterbalanced by increased production from new international hydropower and wind assets. Statkraft's wind power production was at 0.9 TWh in the fourth quarter, amounting to 2.5 TWh for the whole year.
For 2015 overall, the underlying EBITDA ended at NOK 10.17 billion (approx. EUR 1 billion) compared with NOK 12.13 billion (approx. EUR 1.3 billion) in 2014.