Record-high production, strong results

Core Viewpoint - Statkraft reported strong underlying results in Q1 2025, achieving record-high power generation despite lower power prices [1][8]. Financial Performance - Power generation reached 21.7 TWh, an increase of 12% from 19.4 TWh in Q1 2024, marking the highest quarterly generation in Statkraft's history [6][8]. - Net operating revenues were NOK 15.8 billion, down from NOK 19.6 billion in the same quarter last year [6]. - Underlying EBITDA decreased to NOK 10.9 billion from NOK 15.1 billion, while underlying EBIT fell to NOK 9.0 billion from NOK 13.5 billion [6][9]. - Net profit remained stable at NOK 6.8 billion, unchanged from the previous year, supported by positive currency effects [13]. Market Development - Average system price in the Nordic region was 46.0 EUR/MWh, down 12.3 EUR/MWh from Q1 2024, while the German market saw an increase to 112.5 EUR/MWh, up 44.9 EUR/MWh year-on-year [4][5]. - Power prices in the Nordic region fell by 21%, while prices in Germany rose by 67% compared to the same quarter last year [6]. Investment and Development - Construction began on the new Svean hydropower plant, part of a broader capacity upgrade and modernization program [3][8]. - Statkraft made investment decisions for the Blåsjø-Saurdal headrace tunnel (NOK 900 million) and submitted license applications for the Moifjellet wind farm and Nore hydropower plant upgrades (both around NOK 4 billion) [6][8]. - The company signed long-term contracts with Alcoa Norway for a total delivery of up to 1800 GWh [6]. Strategic Adjustments - Statkraft is sharpening its strategy by focusing on fewer technologies and markets, divesting non-core assets, and halting new green hydrogen project developments due to increased market uncertainty [15][16]. - The company aims to adapt to the volatile geopolitical environment while maintaining a long-term perspective on energy transition [18].