The Group posted a profit before tax for the first six months of the year of NOK 5,294 million (NOK 4,211 million), while the profit after tax was NOK 3,251 million (NOK 3,113 million). The adjusted profit after tax for the six months ending 30 June 2008 was NOK 4,546 million (NOK 3,366 million). In the second quarter of the year the Group recorded respective pre- and post-tax losses of NOK 438 million (profit of NOK 660 million) and NOK 606 million (profit of NOK 459 million). These losses are attributable to significant unrealised changes in value. Adjusted for these, and material non-recurring items, the Group posted a profit after tax of NOK 1,549 million (NOK 733 million).
On 24 July E.ON AG and Statkraft signed an agreement under the terms of which Statkraft will exchange its shareholding in E.ON Sverige for assets and shares in E.ON AG. The transaction is expected to be implemented at the end of 2008.
In March, Statkraft decided to proceed with the construction of Blaengwen Wind Farm in Wales. Statkraft and the American company Catamount each own 50 percent of the wind farm, which will have an installed capacity of 23 MW. In June, together with one of its partners in the UK, Statkraft was granted permission to construct Carraig Gheal Wind Farm near Oban on the west coast of Scotland. The wind farm will have an installed capacity of up to 60 MW.
The Group has adopted a new strategy in relation to its commitment to wind power, one of the effects of which will be an increased focus on the development and construction of offshore wind farms in the North Sea Basin. In March Statkraft signed a cooperation agreement with NorWind within offshore wind power to implement a concept study for a large-scale, fixed-base offshore wind farm. In June Statkraft invested in Arise Windpower AB (11.8% shareholding), which develops onshore wind power projects in Southern Sweden, and WindSea AS (49% shareholding), which is developing a concept for offshore wind power based on a floating construction.
At the end of March Statkraft and its collaboration partner Norsk Solkraft were granted a licence to develop a 3 MW photovoltaic solar energy plant in Italy.
In June SN Power decided to commence construction of the company's first wind farm. SN Power owns 80% of the wind farm, which is being constructed in Chile together with a local partner. The wind farm will have 23 turbines and a total installed effect of 46 MW.
Retail electricity providers Fjordkraft and Trondheim Energi Kraftsalg have introduced UN-recognised climate quotas within the private sector market, as well as for customers who wish to ensure that their business activities are carbon neutral. This scheme now stands alongside the previously launched certificate-of-origin electricity agreement scheme.
The purpose of Statkraft SF is to own all the shares in, and provide loans to, Statkraft AS. In addition, Statkraft SF owns certain assets that for technical reasons may not be owned by Statkraft AS. This applies to power plants that have reverted to state ownership and are leased to third parties and to plants that will be owned by Statkraft on reversion to state ownership, together with certain overseas investments (Asian Power Invest AB and Nordic Hydropower AB).
The consolidated financial statements for Statkraft SF will, with the exception of the retained assets and individual items on the liabilities side, be identical with the consolidated financial statements for the Statkraft AS sub-group.
In the closing balance sheet for the second quarter of 2008, the value of the total assets of the Statkraft SF Group was NOK 91 million greater than that of the total assets of the Statkraft AS Group. The book value of the leased power plants and the overseas investments amounted to NOK 922 million.
The Statkraft SF Group's long-term interest-bearing liabilities were NOK 2,750 million higher than those of the Statkraft AS Group, as a consequence of the borrowing by Statkraft SF of NOK 3 billion under an established line of credit in order to finance the dividend payment for the 2004 financial year. At the end of the second quarter, interest-bearing liabilities amounted to NOK 40,040 million, compared with NOK 40,034 million at the end of 2007. The interest-bearing debt ratio was 51.2%, compared with 49.0% at the end of 2007. Current assets, excluding cash and cash equivalents, totalled NOK 22,997 million, while short-term interest-free liabilities amounted to NOK 35,788 million.
The differences between the respective income statements of Statkraft SF and Statkraft AS primarily relate to revenues and expenses associated with ongoing operation of the retained assets. These differences are relatively modest.
Contacts:
Stein Dale, CFO, tel.: +47 24 06 72 11 / +47 450 02 111
Yngve Frøshaug, VP Investor Relations, tel.: +47 24 06 78 76 / +47 900 23 021
