Norway’s largest utility, Statkraft, reporteda rise in underlying operating profit for the first quarter on Thursday, supported by higher electricity prices across the Nordic region.
The state-owned energy company said underlying profit before interest and tax climbed to 11.6 billion Norwegian crowns ($1.25 billion) during the quarter, compared with 9.0 billion crowns in the same period last year.
Higher power prices support earnings
According to the company, stronger power prices across Norwegian price areas and increased contributions from its Markets division helped boost quarterly earnings.
“Higher power prices across all Norwegian price areas, combined with increased contributions from Markets, drove the results,” Chief Executive Officer Birgitte Ringstad Vartdal said in a statement.
The Nordic benchmark power price averaged 90.5 euros per megawatt hour (MWh) during the first quarter, almost double the 46.0 euros/MWh recorded a year earlier.
Statkraft said the sharp increase in electricity prices was mainly driven by colder weather conditions, weaker wind power generation, and concerns over dry weather forecasts.
Weather conditions tighten power supply
The company noted that reduced wind generation and lower hydrological reserves created tighter supply conditions in the Nordic energy market during the quarter.
“The results were impacted by significant volatility in the European and Nordic energy markets, driven by geopolitical uncertainty and a continuing weak hydrological balance affecting power generation in Norway,” Vartdal said.
Statkraft added that low reservoir and snow levels further contributed to higher market prices during the period.
The utility said a dry outlook, combined with lower water reserves and reduced snowfall, weakened the hydrological balance in Norway, affecting hydroelectric power generation.
Market volatility remains elevated
The company highlighted continued volatility across European and Nordic energy markets during the quarter, with geopolitical uncertainty adding pressure to electricity pricing dynamics.
Statkraft said market conditions remained challenging as fluctuations in renewable power output and weather patterns continued to influence regional supply and demand balances.
Hydropower producers across the Nordic region are closely monitoring reservoir levels and weather developments, as these factors remain critical in determining electricity generation capacity and pricing trends.
Statkraft expands renewable energy footprint globally
Statkraft is Europe’s largest renewable energy producer and a major international provider of hydropower, wind, and solar energy.
Founded in 1895 and headquartered in Oslo, the Norwegian state-owned utility operates more than 360 power plants across Europe, Asia, and South America.
Around 96% of the company’s total power production comes from renewable energy sources.
The company is the largest hydropower operator in Europe, managing major reservoirs in Norway, Sweden, and Germany.
Statkraft also develops and operates onshore wind farms in several European countries, including projects such as the Fosen Vind development in Norway, alongside operations in Germany and France.
In solar energy, the company has expanded its presence through solar park developments in countries including the Netherlands and India.
Besides renewable generation, Statkraft is also a major participant in energy trading and market operations, supplying electricity to industrial customers, buying and selling energy, and providing grid balancing services.
The company has additionally focused on repowering older renewable assets by replacing ageing wind turbines with more efficient technology, including projects such as the Montes de Cierzo wind repowering initiative in Spain.
The rise in Nordic benchmark prices during the quarter reflected tighter overall market conditions, particularly as cold weather increased electricity demand while lower wind generation reduced available supply.
Despite the challenging environment, Statkraft reported improved quarterly earnings, supported by stronger pricing and higher contributions from trading operations.
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