The sharply improved results are due to sale of a significant share of Nord Pool ASA’s activities and ‘higher revenues’ on power transmission, that is, revenues exceeding the revenue cap set by the Norwegian water resources and energy directorate (NVE).

Total revenues in 2008 came to NOK 4 256 million, an increase of NOK 841 million compared to 2007. This is mainly due to ‘higher revenues’ on the NorNed cable between Norway and the Netherlands and other connections within the Nordic region. ‘Higher revenues’ will be returned to consumers through reduced grid tariffs in years to come. Operating costs were NOK 3 062 million, increased by NOK 672 million compared to the year before. The rise was mainly caused by increased costs of power transmission losses, and repair works at Statnett’s two cable connections across the Oslo Fjord.  

“The 2008 annual results are strong, and is partly result of realisation of values created at Nord Pool over years”,  Statnett’s President and CEO Auke Lont comments.

Investments
Statnett`s operations are currently dominated by the company’s involvement in a number of substantial investment projects. The project to construct a new high voltage direct current (HVDC) link between Norway and the Netherlands (the NorNed cable) was completed in May 2008, on budget.

Two major grid projects are currently being installed, one between Mid Norway and Sweden and another one south of Norway in the valley of Setesdal. Statnett has also applied the authorities for a license to build three more 420 kV lines. Two lines are planned at the west coast of Norway and one between Namsos and Roan, in the county of Trøndelag. The latter is planned to transmit electricity from possible new wind mills at the Fosen peninsula. Three more lines and a fourth cable between Norway and Denmark, at a total estimated cost of NOK 6.5 billion, have been announced and sent NVE by 2008.

Accrued investments in 2008 for the Statnett group are NOK 2.620 million, compared to NOK 2.982 million for 2007.

Outlook
The sale of a significant share of the activities in Nord Pool ASA, together with the ‘higher revenues’, made a considerable contribution to the 2008 profits for the group. The accumulated ‘higher’ revenues generated in 2008, will however lead to reduced tariffs in following years. Therefore, the profits for 2009 are expected to be significantly weaker than 2008. At the end of 2008, NVE introduced a change to the revenue cap removing the two year time lag between completion of an investment and return on the investment. The new regulation will have a positive impact on Statnetts’s revenues.

Contacts:
Marie Jore Ritterberg
Executive Vice President Finance
Phone: +47 95 85 12 04

Tor Inge Akselsen
Senior Vice President Communications                         
Mobile: +47 950 79 520