Statkraft, Europe’s leading renewable energy producer and a leader in the PPA market, achieved solid results in 2024 despite lower energy prices. In 2024, the average price in the Nordics fell by €21/MWh to €36/MWh, while the average spot (base) price in Germany dropped by €15/MWh to €80/MWh over the same period.

The Group’s President and CEO, Birgitte Ringstad Vartdal, stated, “We have achieved one of our strongest annual results, surpassed only by those obtained during the energy crisis when we witnessed exceptionally high prices. I am proud of what the organization has achieved in 2024, thanks to solid operations, record energy management, and the continuous creation of high value in our market activities. We are making significant investments in the maintenance and upgrade of our hydropower assets in Norway, while developing and optimizing a portfolio of renewable energy projects to build scale and profitability in high-potential markets.”

Ringstad Vartdal added, “Both the markets and the world around us are changing rapidly, making it more difficult to predict what the future will hold. While the underlying drivers of the energy transition remain strong and favorable for Statkraft, the growing geopolitical uncertainty combined with record investment levels in 2023 and 2024 forces us to prioritize even more strictly in the short term among the projects in our extensive portfolio.”

Total energy generation by Statkraft was 66.3 TWh in 2024, compared to 61.9 TWh in 2023. This 7% increase was mainly due to new wind assets in Brazil and Spain and increased generation from gas power plants in Germany. Hydropower generation in the Nordic countries was 0.7 TWh lower than in 2023.

Among the Group’s milestones in 2024, the completion of the acquisition of Enerfín for €1.5 billion stands out. In this regard, José Miguel Ferrer, Managing Director for Spain and Portugal, noted, “After the integration of Enerfín, we reaffirm our commitment to Spain, where we already have an installed capacity of 1.4 GW in operation and expect to increase it to 1.8 GW by 2030, incorporating solar, wind, and battery installations.”

Furthermore, during 2024, Statkraft signed a record number of PPAs, with notable activity in Spain, Germany, Finland, and Norway, and divested several wind and solar energy projects for a total of €400 million.

In January, Statkraft announced plans for record investments in hydropower and wind energy in Norway, as well as several upgrade and maintenance projects; and in October, it refined its strategy by prioritizing investments in Norway, Europe, and South America.

Financial Developments

Operating expenses increased compared to 2023, mainly due to the commissioning of new assets, a higher number of full-time employees, and increased business development activity, as the company has built a large portfolio of renewable energy projects and an organization to meet its growth strategy. The new capacity, primarily related to Enerfín assets, also contributed to higher depreciation and amortization expenses.

Reported EBIT was €2.1 billion, compared to €4.2 billion in 2023. Net financial items amounted to -€500 million (–€100 million in 2023), including a foreign exchange effect of -€400 million, mainly due to the weakness of the Norwegian krone (NOK). Pre-tax profit was €1.8 billion in 2024 (compared to €4.5 billion in 2023), while net profit was €600 million (compared to €2.3 billion).

The Board of Directors has proposed a dividend of €800 million for the 2024 fiscal year.

Statkraft ended 2024 with a strong cash position of €2.6 billion. The cash inflow from a solid operating result was more than offset by taxes paid of €1.8 billion, record investment levels in 2024, and a dividend paid to the owner of €1.1 billion.

Underlying EBIT was €2.3 billion, compared to €3.6 billion the previous year, mainly due to lower energy prices and reduced hydropower generation in Norway, alongside continued solid performance and value creation in the markets.

The Nordics region was the main contributor to the results with an underlying EBIT of €2.1 billion (compared to €2.7 billion in 2023), a strong performance despite lower energy prices and generation compared to 2023. Energy management was record-setting, highlighting Statkraft’s robust and flexible Norwegian hydropower fleet.

The Europe division recorded an underlying EBIT of -€100 million (compared to €400 million in 2023). The main driver of the decline was a lower financial hedging contribution of €400 million compared to 2023, driven by a greater price difference between natural gas and electricity, and higher future prices. Additionally, business development costs increased by €100 million compared to 2023.

Underlying EBIT for International increased to €100 million in 2024, reflecting new wind assets in Brazil and Chile.

Meanwhile, the Markets area reported a strong underlying EBIT of €400 million (compared to €600 million in 2023), driven mainly by continuous and solid performance in origination activities.

Statkraft’s reported EBIT included €400 million in impairments primarily related to hydropower assets in Albania, India, and Turkey, due to lower expected future generation, as well as lower future prices and delays in projects in India. Results were also positively impacted by €200 million, as a previous charge related to Baltic Cable was reversed.

Statkraft’s average Return on Capital Employed (ROACE) for operating assets was 22% in 2024, compared to 37% in 2023. These figures do not include items such as business development costs and assets under construction. The ROACE of operating assets in the Nordic countries was 29% in 2024. Strong energy management over time, combined with older hydropower plants with low book values, has led to a solid segment return.

Operating assets in Europe and International mainly consist of recently built and completed wind, solar, and hydropower plants, with high book values and generation only during parts of the year, resulting in a ROACE of operating assets in Europe and International of 6.6% and 5.2%, respectively, over the last twelve months.