Statkraft, Europe’s largest renewable energy producer, posted its best-ever operating profit for a second quarter, at 5.5 billion kroner ($620 million), compared to a loss a year earlier.
Following a record first quarter, the state-owned energy company posted its best operating profit for a second quarter, at 5.5 billion kroner, compared with a loss a year earlier. The net profit increased fivefold to 2.4 billion kroner.
Electricity prices in Northern Europe, which are highly dependent on precipitation levels and economic conditions, jumped year-over-year to 41.9 euros per megawatt hour in the second quarter, also due to the end of the Coronavirus outbreak.
Amidst abundant supply and sluggish demand caused by the health crisis, prices fell to 5.6 euros in the second quarter of 2020. Production has decreased slightly (-2.5%), at 15.5 terawatt hours, but turnover has more than doubled to 15.6 billion.
Statkraft is primarily involved in hydroelectricity, where Norway is the European champion. It is 100% owned by the Norwegian state and not listed on a stock exchange. While the public group is also active in wind and gas, it has also decided to develop large solar power plants in Spain and Ireland.
Statkraft plans to invest more than 13 billion kroner in renewable energy in the coming years.