The underlying profit 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 recorded net profit for the Group amounted to NOK 106 million in the fourth quarter of 2014 (loss of NOK 69 million), and NOK 829 million for 2014 (NOK 82 million).
The Group recorded operating revenues of NOK 1 426 million in fourth quarter of 2014 (NOK 1071 million), and NOK 5 563 million for the year 2014 (NOK 4 561 million). The growth is due to higher tariffs and congestion revenues. The Group's operating costs totaled NOK 1 226 million in the fourth quarter of 2014 (NOK 1 101 million). For the year 2014, the Group's operating costs totaled NOK 4 185 million (NOK 4 215 million). The decrease was primarily due to lower salaries and personnel costs and lower transmission losses, while depreciation increased.
The group invested NOK 5 981 million in 2014 (NOK 6 375 million in 2013).
Revenues and results adjusted for higher/lower revenue
Statnett’s revenues are regulated by the Norwegian water resources and energy directorate (NVE) which each year calculates the revenue cap of the enterprise based on firm predefined criteria. Total permitted revenue increased from NOK 5 361 million in 2013 to NOK 6 054 million in 2014. Revenues exceeding the revenue cap will be returned to customers over time through tariff reductions. The lower revenue for 2014 was NOK 665 million (NOK 958 million for 2013). Remaining accumulated higher revenue including interest was NOK 1 790 million at the end of 2014 (NOK 2 413 million). The reduction is in line with the plans to reduce accumulated higher revenue over several years.
In 2014, the Group’s profit after tax adjusted for changes in higher/lower revenue after tax and calculated interest on higher revenue was NOK 1 284 million.
Statnett will invest considerably in new capacity in the main grid during the next decade. Extensive construction activity is ongoing. Several projects have been put into operation recently and more will be completed in 2015 and the following years. Statnett has been granted licenses, and is working to realize the construction of interconnectors to Germany and the UK. The two interconnectors have been given high priority and will contribute to security of supply and value creation in Norway and the north European power system, including increased utilization of renewable energy. 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 achieved the milestone for 2014.
Chief Financial Officer
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