Latest news with #BirgitteRingstadVartdal
Reuters
10 hours ago
- Business
- Reuters
Norway's Statkraft to cut costs by $292 mln, may announce layoffs
COPENHAGEN, June 18 (Reuters) - Norwegian state-owned utility Statkraft said on Wednesday it would cut its annual costs by around 15% or 2.9 billion crowns ($292 million) by 2027, citing increased global uncertainty, higher expenses and lower power prices. The company already announced in May that it had stopped developing new green hydrogen projects due to higher costs and uncertain demand, after it scaled back its hydrogen ambition last year. "Statkraft needs to adapt to the changing market and increased geopolitical uncertainty," Statkraft CEO Birgitte Ringstad Vartdal said in a statement on Wednesday. The specific measures, including any staff reductions, will be identified during the second half of 2025, the company said. Statkraft said it would prioritise near term profitable technologies, including solar, wind and batteries in fewer markets, pointing to slow development of the offshore wind industry. "Offshore wind will play an important role in the power mix in Europe, but the pace of development of the industry has been slower than previously forecasted, and this has impacted the ability to drive down costs in the short term," Vartdal said. The company said it would stop further activities in new projects, including Norway's upcoming allocation round of Utsira Nord, and that it will stop its development activities in Portugal. It added that it would assess its investment in solar, wind and batteries in Poland, but that it would proceed with the development of the North Irish Sea Array project. Statkraft will continue market activities in both Portugal and Poland, it said. ($1 = 9.9445 Norwegian crowns)
Yahoo
10 hours ago
- Business
- Yahoo
Statkraft strengthens core activities and competitiveness following strategic review
Statkraft, Europe's largest producer of renewable energy, will further strengthen its core competitive advantages by prioritising its flexible hydropower fleet in the Nordics, industry-leading market operations – and solar, wind and battery activities in Europe and South America. Last year, after Birgitte Ringstad Vartdal took over as CEO, Statkraft sharpened the company's strategy by focusing on fewer technologies and markets to build scale and strengthen competitiveness and value creation. While the underlying drivers remain strong, the energy transition is moving at a slower pace due to increased global uncertainty, higher costs and lower power prices. The new strategy continues to focus on core activities, placing near term cash flow over volume growth, and reducing complexity and cost. 'By concentrating on our core competitive advantages and prioritising investments in near term profitable opportunities, we will be able to continue our growth and value creation, while contributing significantly to the energy security and energy transition," says Statkraft President and CEO Birgitte Ringstad Vartdal. The company has an ambition to invest NOK 16–20 billion annually in the coming years, including large hydropower capacity upgrades in Norway, and maintenance of the large operational asset fleet and onshore wind power developments in Sweden and Norway. In Europe and South America, Statkraft has a large pipeline of projects and will continue to grow in solar, wind, batteries and grid services, but at a lower growth rate than previously planned. As announced in May, Statkraft will stop new development of hydrogen projects. In offshore wind, Statkraft will stop further activities in new projects, including the upcoming allocation round of Utsira Nord in Norway. Development of the North Irish Sea Array (NISA) project will however continue. Statkraft has also decided to assess its investment position in solar, wind and batteries in Poland and will close down development activities in Portugal. The market activities will continue in both countries. 'At this time, Statkraft will prioritise our financial capacity on near term profitable technologies, such as solar, wind and batteries in fewer markets. We have been successful in developing an attractive portfolio in several European markets. As we need to prioritise, parts of the portfolio will benefit from getting new owners. Offshore wind will play an important role in the power mix in Europe, but the pace of development of the industry has been slower than previously forecasted, and this has impacted the ability to drive down costs in the short term,' Vartdal says. These measures will be in addition to the previously announced and ongoing divestment processes for e.g. the district heating and biofuels activities in the Nordics, the development business in Croatia and the Netherlands, and the business activities in India. By focusing on fewer technologies and countries, Statkraft aims to decrease the complexity of the company and reduce payroll and other operating expenses with around NOK 2.9 billion annually by 2027. This is a 15 percent reduction compared to the estimate for 2025. The exact cost efficiency measures, including redundancies, will be identified through the annual business planning process that takes place in the second half of the year. 'Statkraft needs to adapt to the changing market and increased geopolitical uncertainty. Unfortunately, this also impacts our most important asset: Our people. We will do what we can to limit uncertainty and mitigate negative effects on employees,' says Vartdal. Statkraft has delivered strong value creation, paid NOK 59 billion in dividend to the owner and more than doubled its equity value to well over NOK 300 billion since 2018. 'Statkraft's portfolio of complementary renewable technologies across regions, coupled with deep market understanding, gives us a strong position to continue our value creation, contribute to energy security, and play an important role in the energy transition. As we mark Statkraft's 130th anniversary this year, we are keeping a long-term perspective. Although the ongoing geopolitical challenges might delay the energy transition, it will not stop it," says Vartdal. For further information, please contact: Media:International Media Relations Lead, Marte Lerberg Kopstad, tel: +47 995 22 026, e-mail: mlk@ of Norway Media Relations, Andreas Tinglum, tel +47 930 01 773, e-mail: Debt Capital Markets: Vice President Stephan Skaane, tel: +47 905 13 652, e-mail: Financial Advisor Arild Ratikainen, tel: +47 971 74 132, e-mail: or About StatkraftStatkraft is a leading company in hydropower internationally and Europe's largest generator of renewable energy. The Group produces hydropower, wind power, solar power, gas-fired power and supplies district heating. Statkraft is a global company in energy market operations. Statkraft has around 7,000 employees in more than 20 countries. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-05-2025
- Business
- Yahoo
Statkraft stops new development of green hydrogen projects
Statkraft has decided to stop new development of green hydrogen due to increased uncertainty in the market. Parts of the portfolio will be matured before seeking investors to realise the projects. Statkraft has developed expertise and created value in green hydrogen projects in line with our strategy across various European markets, including Norway, Sweden, the UK, Germany, the Netherlands and Italy. The company has decided to halt new development of hydrogen, though parts of the portfolio will be further matured before seeking investors to realise the projects. Several projects have received substantial external funding opportunities, and the company is working with authorities to ensure their progression. 'After reducing the ambition level on green hydrogen development last year, we are experiencing even more uncertainty in the market. Therefore, Statkraft has decided to stop new development of green hydrogen and going forward we will prioritise growth opportunities in other technologies, and market operations,' says Birgitte Ringstad Vartdal, President and CEO of Statkraft. Statkraft continues to believe in the long-term future of green hydrogen and its importance in reducing emissions from carbon-intensive industries. Market activities related to hydrogen will continue to be part of Statkraft's portfolio. For further information, please contact: Media spokesperson Norway, Geir Fuglseth, tel: +47 913 70 572 e-mail: Media spokesperson International, Marte Lerberg Kopstad, tel: +47 995 22 026 e-mail: mlk@ or About Statkraft Statkraft is a leading company in hydropower internationally and Europe's largest generator of renewable energy. The Group produces hydropower, wind power, solar power, gas-fired power and supplies district heating. Statkraft is a global company in energy market operations. Statkraft has around 7,000 employees in more than 20 countries. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
08-05-2025
- Business
- Yahoo
Record-high production, strong results
'In the beginning of 2025 construction works started on the new Svean hydropower project — marking the first step in delivering on our capacity upgrade and modernisation programme in Norway. We also decided to invest in the Blåsjø-Saurdal headrace tunnel, and submitted licence applications for the Moifjellet wind farm, as well as the upgrade of the Nore hydropower plants. Together, these plans can ensure that we can continue supplying the Norwegian industry and society with electricity for another hundred years,' says Statkraft President and CEO, Birgitte Ringstad Vartdal. On 2 May, Statkraft announced a licence application for an upgrade of the Nore hydropower plant with an expected investment of around NOK 4 billion. In the first quarter of 2025, Statkraft commenced its investment programme in Norwegian wind and hydropower. Statkraft signed two new long-term industry contracts with Alcoa Norway, with a total delivery of up to 1800 GWh. Baltic Cable AB and Equitix signed an agreement to acquire Greenlink Interconnector, with Statkraft's minority interest estimated to be around NOK 2.2 billion. Power prices fell by 21 per cent in the Nordic region in the quarter and rose 67 percent in Germany compared to the same quarter last year. Net operating revenues were NOK 15.8 billion in the first quarter 2025 compared to NOK 19.6 billion in the comparable quarter last year. Power generation in the first quarter 2025 was record-high for a single quarter at 21.7 TWh, an increase of 12 per cent from 19.4 TWh in the same quarter 2024. (Oslo, Norway, 8 May 2025) – Statkraft continued to deliver strong underlying results in the first quarter of 2025. Despite lower power prices, power generation was record-high. The start of construction on the new Svean hydropower plant marked the beginning of Statkraft's development and upgrade programme in Norwegian hydro and wind power, followed by further investment decisions and licence applications. Story continues Prices, market development, and generation The average system price in the Nordic region was 46.0 EUR/MWh in the first quarter 2025, down 12.3 EUR/MWh from the first quarter 2024 and up 14.9 EUR/MWh from the fourth quarter. The prices decreased mainly due to mild weather and inflow above normal levels. The price area differences increased both in Sweden and Norway, primarily due to differences in precipitation between northern and southern areas. The average base price in the German market (EEX) was 112.5 EUR/MWh in the quarter, up 44.9 EUR/MWh from the same quarter last year, and up 9.7 EUR/MWh since the fourth quarter. The increase was mostly explained by significantly higher European gas prices, lower wind power generation in Germany and increased CO2 prices. Statkraft's generation was 21.7 TWh in the first quarter of 2025, 2.3 TWh higher than the first quarter last year and the highest ever recorded for a single quarter. The increase was mainly due to higher generation in high price areas in Norway and new wind farms coming in operation in Brazil and Spain. Higher spark spreads (margin between power and gas prices) and longer periods with positive spark spreads lead to increased generation from gas-fired power. Total wind power production was 2.3 TWh in the first quarter (1.7 TWh), while hydropower production was 18.2 TWh (17.2 TWh). 'Statkraft delivered another quarter with strong underlying results, despite lower prices. The power generation was 21.7 TWh in the quarter, the highest ever recorded in Statkraft's history. Higher volumes demonstrate our strong operations and maintenance capabilities, the role of our flexible hydropower fleet, as well as new wind power investments in Spain and Brazil starting to pay off. The contribution from energy management continued to be record-high at the end of the quarter, with strong contribution from ancillary services that are needed when the energy system becomes more complex,' adds Vartdal. Financial development Underlying EBITDA was NOK 10.9 billion in the first quarter (NOK 15.1 billion), while underlying EBIT was NOK 9.0 billion compared to NOK 13.5 billion in the same quarter last year. The results from energy management and power generation were strong. The decrease was primarily due to significantly lower power prices, lower contribution from hedging of assets, as well as lower contribution from trading and origination. Nordics was the main contributor to the results with an underlying EBITDA of NOK 9.1 billion (NOK 12.7 billion). Excluding a reversal of a provision resulting in a positive impact of NOK 2.6 billion in the first quarter last year, the underlying EBITDA decreased by NOK 1.1 billion. Markets delivered an underlying EBITDA of NOK 0.2 billion in the quarter (NOK 1.4 billion), mainly as the contribution from Trading and Origination was lower than the very strong results in the first quarter 2024. Geopolitical uncertainty contributes to a more challenging market environment for both activities. The contribution from Europe and International improved, mostly due to production capacity following newly acquired assets and constructed assets coming in operation. Reported EBIT was NOK 6.8 billion in the quarter (NOK 15.5 billion), including NOK -2.0 billion in unrealised value changes from embedded EUR derivatives (compared to NOK 2.0 billion in positive effects in the same quarter last year). Despite a significant drop in EBIT, the net profit of NOK 6.8 billion was unchanged from the same period last year. This stability was primarily due to positive currency effects of NOK 3.1 billion under financial items (NOK -2.7 billion). In addition, lower tax expense also contributed to maintaining the net profit. Return on average capital employed (ROACE) for assets in operation in Nordics for the last twelve months, containing mostly old and depreciated hydropower plants at low book values, fell to 24.2 percent in the first quarter (37.1), primarily due to the significantly lower power prices. ROACE for assets in operation in Europe and International were 6.4 and 6.1 percent respectively. These numbers do not include items such as business development costs and assets under construction. ROACE for Europe and International are overall in line with expectations following many new built and acquired assets and higher book values. Sharpening strategy and adapting to market changes Last year, Statkraft decided to sharpen the strategy, focusing on fewer technologies and markets to build scale and strengthen competitiveness and value creation. This includes divesting the onshore wind, solar and battery business in the Netherlands and Croatia, and the hydropower and solar assets in India, as well as divesting the district heating business and finding new investors in the biofuels company Silva Green Fuel and the EV charging company Mer. Statkraft has already divested the Enerfin US portfolio following last year's acquisition of Enerfin, and will divest Enerfin's businesses in other non-core countries. These processes are ongoing. Due to increased uncertainty in the market, Statkraft has decided to stop new development of green hydrogen projects. While the underlying drivers remains strong and the energy transition continues, the state of the energy markets and geopolitical environment has become more volatile. Statkraft continues to adapt to these changes and is assessing strategic and operational adjustments in our ongoing annual strategic review due in June to ensure that the company creates the highest possible return for the owner over time in a sustainable manner. 'As we mark Statkraft's 130th anniversary this year, we are keeping a long-term perspective while we manage through these turbulent and uncertain times. Although the ongoing geopolitical challenges might delay the energy transition, it will not stop it. The long-term drivers behind the transition are strong, but Statkraft will continue to adapt our activities in light of the uncertainty and the fact that we currently have more profitable renewables projects than we have funding for. Developing a flexible portfolio based on our competitive strengths and prioritising the best projects to invest in is thus a key priority,' says Birgitte Ringstad Vartdal. For further information, please contact: Debt Capital Markets: Vice President Stephan Skaane, tel: +47 905 13 652, e-mail: Senior Financial Advisor Arild Ratikainen, tel: +47 971 74 132, e-mail: Media: Corporate Media Relations Lead Lars Magnus Günther, tel: +47 912 41 636, e-mail: VP External Communications Torbjørn Steen, tel: +47 911 66 888, e-mail: or This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act. About Statkraft Statkraft is a leading company in hydropower internationally and Europe's largest generator of renewable energy. The Group produces hydropower, wind power, solar power, gas-fired power and supplies district heating. Statkraft is a global company in energy market operations. Statkraft has around 7,000 employees in more than 20 countries. This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act Attachments
Reuters
05-03-2025
- Business
- Reuters
Norway's Statkraft posts profit drop, says politics could impact costs
OSLO, March 5 (Reuters) - Norway's Statkraft posted a 56% drop in fourth-quarter underlying operating profit on Wednesday as power prices fell sharply and cautioned that trade wars could boost the cost of building generation capacity. "Potential trade wars will, of course, increase costs and thereby reduce efficiencies in the market," CEO Birgitte Ringstad Vartdal told Reuters. Statkraft's underlying earnings before interest and tax (EBIT) fell to 5.1 billion Norwegian crowns ($459 million) from 11.5 billion a year earlier. The benchmark Nordic system power price fell to an average of 31.10 euros per megawatt hour, down 46.3% year on year, it said. The state-owned utility's annual underlying EBIT fell 36% to 26.5 billion crowns from 41.4 billion crowns a year ago. If global political tensions prompt Europe to expand its industrial production, that would spell more energy demand, Vartdal noted. Another key uncertainty is the fate of Russian gas supply to Europe, she said, referring to largely curbed Russian supply at the moment and whether a potential peace deal in Ukraine might mean a resumption of flows. "No Russian gas, or a lot of Russian gas, will have an impact on (energy) prices," Vartdal said. Europe has switched away from Russian gas to alternative supplies since Moscow's invasion of Ukraine in 2022 and also added more wind and solar power generation, reducing its gas requirements. ($1 = 11.1103 Norwegian crowns)
