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2016-10-28

Statkraft AS: Result for the third quarter of 2016

Strong operations but impairments led to a negative result

(Oslo, 28 October 2016)Statkraft AS recorded an underlying operating profit
(EBITDA) of NOK 2001
million in the third quarter of 2016. This is an increase of NOK 702 million
compared with the corresponding period in 2015. The quarter showed a net loss
of NOK 1417 million, due to impairment of assets mainly caused by lower long
term price expectations.

The increase in EBITDA was primarily driven by higher Nordic power prices and
higher production due to successful energy management. The average Nordic
power price in the third quarter was 25.2 EUR/MWh. This is a small increase
from the second quarter, and an increase of 89% compared with the low prices
experienced in the same period in 2015. Statkraft's total production
increased with 2.2 TWh from the third quarter last year to a total of 13.3
TWh in this quarter.

Statkraft's long term price expectations have been negatively influenced by
lower fuel price expectations. This is the main reason for impairments of
hydro- and wind power assets in several countries. It was recognized 2384
million of impairments in consolidated operations and 172 million in
associated companies.

- Statkraft's core operations are fundamentally strong with a solid cash flow.
The impairments reflect a decline in our long term price expectations. In
order to adapt to the market development, we are running an extensive
improvement programme in all parts of the organisation, says CEO Christian
Rynning-Tønnesen.

Statkraft's Performance Improvement Programme is progressing according to
plan. The aim of the programme is to strengthen performance and reduce
controllable costs with 15 percent equalling 800 million by the end of 2018,
measured against the actual costs for 2015.

Statkraft decided last year not to invest in new offshore wind projects and
subsequently to optimize the existing offshore wind portfolio in the UK.
Statkraft has now started preparations for the divestment of offshore wind
assets.

The 73 MW Banja hydropower plant in Albania came into operation. Annual
production will be around 255 GWh.

Furthermore, Statkraft commissioned Nedre Røssåga power station. It is one of
the largest hydropower projects in Norway in 15 years. Installed capacity has
been increased from 250 to 350 MW and total production increases by
approximately 200 to 2150 GWh annually. The power station is now ready for
another 50 years of operations.

The new capacity will reinforce Statkraft's position as Europe's largest
generator of renewable energy.

For further information, please contact:

SVP Investor Relations Thomas Geiran, tel.: +47 905 _79 979, e-mail:thomas.geiran@statkraft.com

Press spokesperson Knut Fjerdingstad, tel.: +47 901 86 310, e-mail:knut.fjerdingstad@statkraft.com

SVP Corporate Communication Bente E. Engesland, tel.: +47 911 59 952, e-mail:bente.engesland@statkraft.com

orwww.statkraft.com

Statkraft is a leading company in hydropower internationally and Europe's
largest generator of renewable energy. The Group produces hydropower, wind
power, gas-fired power and district heating and is a global player in energy
market operations. Statkraft has 4200 employees in more than 20 countries.

This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.

Interim report Q3 2016
http://hugin.info/133427/R/2052246/768029.pdf
Presentation Q3 2016
http://hugin.info/133427/R/2052246/768028.pdf

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This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Statkraft AS via Globenewswire

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