Statnett SF Half-year Report (9985K)
August 31 2023 - 2:05PM
UK Regulatory
TIDM93RX
RNS Number : 9985K
Statnett SF
31 August 2023
Statnett SF- Results first half-year of 2023
The Statnett Group's underlying profit after tax amounted to NOK
970 million in the first half of 2023, almost double compared to
the first half of 2022. At the same time, reduced congestion
revenues contributed to a negative profit after tax.
"Statnett delivers a solid underlying result for the first half
of the year", says Cathrine Lund Larsen , Executive Vice President
and CFO. "At the same time, the market turbulence did diminish
during first half of 2023 compared to first half of last year and
contributed to a significant reduction in congestion revenues. The
accounting result is affected by this".
The increase in underlying profit is mainly due to an increase
in permitted revenue and is among other things due to increased
grid capital and higher interest rates. The underlying result is
based on the regulated permitted revenue, whereas the financial
result under IFRS will depend on stipulated tariffs and congestion
revenues. The difference, referred to as higher or lower revenue,
will level out over time through adjustment of tariffs, ensuring
that Statnett's accumulated revenue corresponds with the regulated
permitted revenue.
Significant variation in revenues is the main reason why
Statnett had a negative profit for the first half of the year
despite a solid underlying profit. The Group's operating revenues
for the first half of 2023 was significantly reduced compared to
the first half of last year. The reduction in operating revenues is
primarily due to a decrease in congestion revenues in the first
half of 2023. Furthermore, Statnett has repaid parts of the
congestion revenue to grid owners in line with the plan to reduce
accumulated higher revenue and capped the tariff for 2023.
The Group's operating expenses increased compared to the same
period last year. The increase in operating expenses is primarily
due to higher costs related to cross boarder compensation and costs
related to ancilliary services. At the same time, the transmission
losses were reduced mainly as a result of lower power prices.
Sustainability and HSE
Statnett has worked systematically with its own climate
emissions over the past year and is now delivering more complete
climate accounts and targets in line with the Paris Agreement.
Going forward, we will work with science-based targets to cut our
own emissions, and in May we sent our commitment letter to the
Science Based Targets initiative.
Within HSE, there is a great focus on strengthening safety both
for contractors and in our own activities. The number of incidents
with serious injury potential has decreased.
Satisfactory security of supply
The water level in Norwegian reservoirs has returned to normal
and security of supply is good. Statnett has assessed the power
situation to be normal throughout the country in the first half of
2023. There were periods of strong wind at the start of the year,
which led to short outages on some power lines, but no longer
downtime. The extreme weather Hans hit Norway in August. It had no
significant impact on Statnett's installations.
Holding steady in uncertain times
Statnett's strategy is to ensure a power system that enables a
zero-emissions society and facilitates the establishment of new
industrial activity in Norway. This requires accelerated and
efficient expansion of the grid while fully exploiting its existing
capacity.
"Statnett has ambitious plans to reinforce and expand today's
power grid throughout the country and is substantially ramping up
its construction activities to enable this", says Cathrine Lund
Larsen.
Statnett's forecasts show that without new power production,
Norway will have a power deficit in a few years. Offshore wind
power development is an important measure in securing sufficient
power production in the years after 2030. In June, the Norwegian
Ministry of Petroleum and Energy commissioned Statnett to
investigate potential hybrid grid solutions. At the same time, the
Ministry assumes that Statnett will build and own hybrid
interconnectors for offshore wind power if such solutions are
chosen and approved by the Government in the future. The Government
has previously given Statnett system operator and planning
authority for the offshore grid.
(Amounts in NOK million) First half First half
of 2023 of 2022
Total permitted revenue grid operations 8 204 6 709
----------- -----------
Underlying profit 970 596
----------- -----------
Total operating revenue 4 014 12 616
----------- -----------
Congestion revenue 4 347 8 877
----------- -----------
Total operating expenses 6 509 5 911
----------- -----------
Profit for the period -2 539 4 921
----------- -----------
Investments 2 752 2 162
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Higher(+)- and lower(-)revenue -4 499 5 545
----------- -----------
Accumulated higher revenue at
the end of period 4 779 7 955
----------- -----------
On 31 August 2023, Statnett's Board of Directors approved the
Group's Interim Report for the first half of 2023. The Interim
Report is enclosed and available on www.statnett.no .
Contact:
Cathrine Lund Larsen
Chief Financial Officer
Mobile: +47 979 75 867
Petter Erevik
Director of Finance
Mobile: +47 952 82 840
www.statnett.no
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