The underlying profit or loss is based on the regulated permitted revenue, whereas the recorded profit or loss will depend on stipulated tariffs and congestion revenues. The difference (higher or lower revenue) will level out over time through adjustment of tariffs, ensuring that Statnett's accumulated revenue corresponds with the regulated permitted revenue. The Group reported a profit after tax of NOK 197 million in the first quarter of 2015 (NOK 171 million).

The Group's operating revenues in the first quarter of 2015 totalled NOK 1 509 million, compared to NOK 1 324 million for the same period in 2014. The increase was mainly due to higher fixed tariff revenues as a consequence of increased tariff rates for consumption. In addition, congestion revenues were higher, mainly due to increased capacity from the new interconnector to Denmark (Skagerrak 4) and due to higher price differences in the Nordic countries and in relation to the Netherlands.

The Group's operating costs totaled NOK 1 162 million in the first quarter of 2015 (NOK 1 031 million). The increase was mainly due to higher depreciation and personnel costs as a result of growth in the enterprise.

Statnett is planning and implementing major development projects. The Statnett Group invested NOK 1 079 million in the first quarter of 2015, compared to NOK 1 294 million for the same period in 2014. Planned investments total approximately NOK 7 billion for 2015.

Statnett's higher/lower revenue
Statnett's operating revenues mainly derive from grid operations regulated by the Norwegian Water Resources and Energy Directorate (NVE), which stipulates a cap (permitted revenue) for Statnett's revenues. Permitted revenue increased from NOK 1 552 million in the first quarter of 2014 to NOK 1 594 million in the first quarter of 2015. In the first quarter of 2015, Statnett's lower revenue amounted to NOK 133 million (lower revenue of NOK 261 million). The lower revenue is due to lower revenues from grid operations than permitted revenue. Accumulated higher revenue including interest was NOK 1 664 million at the end of the first quarter of 2015. The reduction is in line with the plans to reduce accumulated higher revenue over several years.

Statnett will invest considerably in new capacity in the main grid during the next decade. Extensive construction activity is ongoing. The historically high investment levels is driven by Norwegian society’s need for a stronger grid which will ensure a reliable power supply, facilitate projects in renewable energy and industrial and commercial development throughout the country. Together with its German and British partners, Statnett has made a final investment decision for the interconnectors to Germany (NordLink) and the UK (NSN Link). Both projects have high priority and are important for the development and integration of the Northern European power system. The projects will help ensure security of supply in Norway, Germany and the UK, and balance variations in German and British renewable power production throughout the day. Power exchange capacity enhances value creation in Norway. Moreover, the projects will support the ambitions to increase generation of renewable energy throughout the region and help meet the EU's climate and energy targets.

Statnett is focusing on maintaining its position as one of the most cost-efficient TSOs in Europe. In 2013, the enterprise established an objective to increase efficiency by 15 per cent-by the end of 2018, based on the 2013 budget. Statnett's objectives for 2014 were achieved. Statnett will continue to step up its improvement work in 2015.

Statnett – Results Q1 2015

Knut Hundhammer
Chief Financial Officer
Mobile: +47 901 65 299