Statkraft strengthens core activities and competitiveness following strategic review

Core Strategy - Statkraft, Europe's largest producer of renewable energy, is focusing on its flexible hydropower fleet in the Nordics and expanding solar, wind, and battery activities in Europe and South America to strengthen its competitive advantages [1][2] - The company aims to prioritize near-term cash flow over volume growth, reducing complexity and costs while maintaining a strong focus on core activities [1][3] Investment Plans - Statkraft plans to invest NOK 16–20 billion annually in the coming years, targeting large hydropower capacity upgrades in Norway and onshore wind power developments in Sweden and Norway [3] - The company has a significant pipeline of projects in Europe and South America, although growth rates will be lower than previously planned [3] Project Development Adjustments - Statkraft will cease new hydrogen project developments and stop further activities in offshore wind projects, while continuing with the North Irish Sea Array (NISA) project [4][5] - The company will assess its investment position in solar, wind, and batteries in Poland and will halt development activities in Portugal, although market activities will persist in both countries [4] Cost Efficiency Measures - By focusing on fewer technologies and countries, Statkraft aims to reduce payroll and operating expenses by approximately NOK 2.9 billion annually by 2027, representing a 15% reduction compared to the 2025 estimate [7] - Specific cost efficiency measures, including potential redundancies, will be identified through the annual business planning process [7] Long-term Perspective - Despite ongoing geopolitical challenges that may delay the energy transition, Statkraft maintains a long-term perspective and believes in its strong position to contribute to energy security and the energy transition [9] - The company has delivered significant value creation, paying NOK 59 billion in dividends and more than doubling its equity value to over NOK 300 billion since 2018 [8]