Norway: Statnett Reports Profit After Tax of USD 45 Million

The Statnett Group reports profit after tax of NOK 265 million for the first quarter of 2012. The corresponding figure for the same period in 2011 was NOK 394 million. The reduction was due to downward adjustment of tariffs for 2012 and lower congestion revenues in the period.

In the first quarter of 2012 total operating revenues for the Statnett Group amounted to NOK 1 395 million, compared to NOK 1 652 million for the same period of 2011. The reduction in operating revenues was due to lower tariff revenues as a consequence of lower stipulated tariffs for 2012 than for 2011, lower electricity prices in 2012, as well as lower congestion revenues in the Nordic region in 2012.

Statnett’s revenues are regulated by the Norwegian water resources and energy directorate (NVE) which each year calculates the company’s revenue cap based on firm predefined criteria. Revenues exceeding the revenue cap will be returned to consumers over time through a reduction in tariffs. The higher revenue for the first quarter of 2012 was NOK 201 million, compared to NOK 329 million for the same period in 2011. Accumulated higher revenue was NOK 2 831 million at the end of first quarter 2012.

In the first quarter of 2012, the Group’s profit after tax adjusted for changes in higher/lower revenue after tax and calculated interest cost on higher revenue was NOK 111 million.

In the first quarter of 2012, the Statnett Group invested NOK 585 million compared to NOK 517 million for the same period in 2011.

 Outlook

Statnett’s activities will continue to be dominated by the substantial number of investment projects, both planned and ongoing. Statnett presented its Grid Development Plan in November 2011. The plan forms the foundation of the next generation main grid, which will be completed by 2030. In the next five-year period Statnett will develop a significantly larger project volume, and the period will to a large extent be a structuring and experience phase for the organisation, by, among other measures, adopting new contract models to increase Statnett’s scalability.

The investment program aims to maintain the future security of supply, contribute to value creation and pave the way for better environmental solutions in Norway.

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Offshore WIND staff, May 14, 2012; Image: statnett