OSLO: Norwegian state-owned utility Statkraft AS said on Thursday it has signed deals to sell 13.5 billion crowns ($1.2 billion) worth of assets in the third quarter, a key step in a refocused strategy that comes as the company navigates lower power prices and hedging losses.
The divestments, which include its district heating business and renewable assets across seven countries, are designed to reduce complexity and free up capital for growth in prioritised markets and technologies like solar, wind, and battery storage in Europe and South America.
Despite reporting a record-high power generation of 15.8 Terawatt hours (TWh) for the quarter, Statkraft’s financial performance weakened. Underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) fell to 3.1 billion crowns from 4.9 billion a year earlier.
The company posted a net loss of 714 million crowns for the quarter, compared to a loss of 225 million crowns a year ago.
“The results were impacted by low prices in Northern Norway, reduced contribution from Markets, and negative hedging effects,” the company said in a statement.
CEO Birgitte Ringstad Vartdal said she was “pleased with the solid progress” in executing the sharpened strategy, which was announced in June.
“We have sold a portfolio of businesses, our skilled teams will have new owners, and the divestments contribute to reduce complexity and cost and free up capital for further profitable growth,” Vartdal said.
The assets sold in the quarter include transmission lines in Peru, and renewable energy assets and development activities in Canada, Croatia, India, Nepal, and the Netherlands. As a result, around 330 employees will transfer to new owners by the end of 2025.
While scaling back in some areas, Statkraft is pushing ahead with new investments in its core markets. It submitted a license application for a new unit at its Alta hydropower plant in Norway and made a final investment decision for a battery project in Chile. After the quarter ended, it also decided to build a 182 MWp solar farm in Peru.
The company said it is planning for a long-term investment capacity of 16-20 billion crowns per year.
($1 = 11.0928 Norwegian crowns)