Norway

Norway

Statkraft divestment enables future expansion

NORWAY: Divestment of offshore wind farms enables state energy company Statkraft to pursue future investment in new renewable energy markets.

Statkraft divested its 40% stake in the 317MW Sheringham Shoal offshore wind farm (above) last year
Statkraft divested its 40% stake in the 317MW Sheringham Shoal offshore wind farm (above) last year

The group’s operating profit (Ebit) of NOK 17.04 billion (€1.77 billion) marked a fivefold increase on last year’s Ebit of NOK 3.08 billion.

Statkraft’s wind division, meanwhile, was boosted to NOK 3.21 billion, up from last year’s loss of NOK 781 million.

This was mainly due to divestments of offshore wind farms, which raised NOK 3.31 billion, the company stated.

"Statkraft’s exit from offshore wind power has significantly contributed to improve the investment capacity," the state energy company wrote in its annual report.

"Statkraft has a solid foundation for further growth in renewable energy."

The company is targeting further development of assets in Europe, South America and India within wind, hydro and solar power, it added.

Last year, Statkraft divested its 40% stake in the 317MW Sheringham Shoal offshore wind farm, as well as its 50% shareholding in the 860MW Triton Knoll project. These transactions bought in NOK 2.63 billion and NOK 426 million respectively, the company stated in its results.

It quit the Forewind consortium — which was working to develop the Dogger Bank site in the North Sea — in March, freeing up NOK 256 million, the company stated.

Statkraft also agreed to sell its 30% share of the 402MW Dudgeon site, its last remaining offshore interest, for £555 million (NOK 6.06 billion). It expects this transaction to close in the first quarter of 2018.

The company had announced that it intended to exit offshore wind in December 2015.

"The offshore wind activities have been profitable, but further development would have required a larger financial capacity than Statkraft currently has. The exit will allow for stronger focus on other renewable energy sources in the future."

Statkraft also said that a "key priority" is completing the six-phase, 1GW Fosen project in Norway, which could be the largest onshore wind farm in Europe when completed. Construction is "well on its way", with an expected online date of 2020, the company stated.

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