Statkraft Sees German Market Improving
Norwegian state hydro-power generator Statkraft has reversed impairments on its gas-fired power plants, of which it has four in Germany and one in Norway.
It said in its annual results February 15 that an "increased need for flexibility in the German market and improved outlook for future gas-to-power margin" led it to reverse impairments of Nkr 914mn ($116mn) for the gas-fired plants during 4Q2017.
Statkraft says it controls 1,900 MW (gross) of generation plant in Germany, or one-fifth of that country's flexible gas-fired power capacity. In addition to two small gas-fired power plants Robert Frank and Emden, which Statkraft took over in 2009, the portfolio consists of two modern gas-fired power plants: Knapsack, near Cologne (800 MW, 100% Statkraft) and Herdecke (400 MW, 50-50% owned by Statkraft and Germany's Mark-E), which both started up in autumn 2007 and built with the best technology available.
In Norway, Statkraft and Statoil are 50-50% owners of Naturkraft, which owns a 420-MW gas-fired plant at Karsto, also started up in autumn 2007.
Statkraft's net profit for 2017 was Nkr 11.7bn, contrasting with a net loss of Nkr 179mn in 2016; its 4Q2017 profit of Nkr 5.3bn compared with a profit of Nkr 748mn in 4Q2016.
The average 4Q2017 German power base price (EEX) was €33.2/MWh in 4Q2017, down 12% year on year despite higher gas and CO2 prices, it said, owing to more windpower generation, while the average Nordic power system price was €30.6/MWh, down 11%.