OSLO (Reuters) -Norway’s biggest utility, state-owned Statkraft, reported a deeper quarterly net loss on Tuesday, as lower expectations for Nordic power prices and an ongoing restructuring of the group prompted it to write down the value of a number of assets.
The net loss for the April-June period widened to 6.5 billion Norwegian crowns ($638.56 million) from 992 million crowns in the second quarter of 2024.
Statkraft, which has continued to scale back its growth ambitions this year amid rising costs, said on Tuesday it will prioritise investments in near-term profitable opportunities.
“Given the current market situation and geopolitical realities, combined with Statkraft’s recent high activity and investment level, we are adjusting our strategic ambitions,” CEO Birgitte Ringstad Vartdal said in a statement.
Ratings agency Fitch this month cut Statkraft’s credit rating by one notch to BBB+, citing weakening performance and financial metrics.
The company booked impairments of 6.3 billion crowns in the second quarter, of which 2.5 billion crowns related to Swedish wind power assets and 0.5 billion to Norwegian wind farms.
Other impairments related to battery energy storage systems investments in Britain, joint venture hydropower plants in Chile and the group’s corporate development portfolio, Statkraft said.
Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) fell to 4.5 billion crowns, from 6.5 billion a year ago as lower power prices outweighed higher production.
Nordic power prices averaged 26.5 euros per megawatt hour (MWh) in the quarter, down from 35.3 euros/MWh a year ago, Statkraft said.
($1 = 10.1791 Norwegian crowns)
(Reporting by Terje Solsvik, editing by Louise Rasmussen, Kirsten Donovan)
