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]

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].