Total revenues in 2007 came to NOK 3 415 million, an increase of NOK 210 million compared to 2006. This is mainly due to increased power transmission. Operating costs were NOK 2 390 million, reduced with NOK 507 million compared to the year before. The decrease was mainly due to reduced power prices for transmission losses and decreased depreciation due to increased estimated period of useful life of the operating equipment.

“I am very contented with the 2007 results. They are stronger than expected,” Odd Håkon Hoelsæter, Statnett’s President and CEO, comments. The Statnett subsidiary Statnett Transport`s net result after tax came to NOK 5 million, the same as for 2006.

Investments

Statnett`s operations are currently dominated by the company’s involvement in a number of substantial investment projects. The project to construct and establish a new high voltage direct current (HVDC) cable link between Norway and the Netherlands (the NorNed cable) is on budget. The project is delayed due to a malfunction of the cable before Christmas 2007 and is now expected commissioned in April 2008.

Two major grid projects have been initiated in 2007; one between Mid Norway and Sweden and another one south of Norway in the valley of Setesdal. Statnett has also applied the Norwegian Water and Energy directorate (NVE) for a license to build two 420 kV lines at the west coast of Norway. An application for a licence at the line between Namsos and Roan in Mid Norway is submitted. The line is necessary due to new planned wind power plants in the region.

Accrued investments in 2007 for the Statnett group are NOK 2 982 million, compared to NOK 2 180 million for 2006.

Outlook

The results for 2008 are expected to improve from 2007. The reason is mainly an agreement with the Swedish Power Exchange OMX to trade off a significant share of Nord Pool ASA’s activities.