Norway’s state-owned utility Statkraft has recorded significant loss for its wind power division for the third quarter.
Statkraft are citing impairments driven by a decline in long-term price expectations. The company added that the wind division booked an operating loss of $89m compared to a deficit of $6.2m a year earlier.
Impairments also led to a $17m net loss on the group level as hydropower assets in several countries were impaired as well. That loss, however, was significantly lower than the $47m deficit registered a year earlier.
SeeNews reports that the company noted that its Q3 underlying EBITDA has been affected by lower wind speeds compared to those in the same period last year, but that has been partially offset by higher Nordic power prices and lower operating expenses.
“Statkraft’s core operations are fundamentally strong with a solid cash flow,” Statkraft chief executive Christian Rynning-Tønnesen said.
“The impairments reflect a decline in our long term price expectations,” he said. “In order to adapt to the market development, we are running an extensive improvement programme in all parts of the organisation.”.
Statkraft confirmed that it is getting ready for the sale of some offshore wind assets in the UK. As announced in September, the company plans to sell its interest in assets surpassing 5.5 GW of combined capacity.