The Statnett Group reports a loss after tax of NOK 69 million in the fourth quarter of 2013, compared to a profit after tax of NOK 115 million for the same period in 2012. Profit after tax for 2013 was NOK 82 million, compared to NOK 837 million for 2012. The reduction in 2013 was mainly due to lower tariff revenues due to planned downward adjustment of tariffs in 2013, lower congestion revenues and higher operating costs.
The Group's operating revenues in the fourth quarter of 2013 was NOK 1 071 million, compared to NOK 1 341 million for the same period in 2012. The Group's operating revenues for 2013 amounted to NOK 4 561 million. The corresponding figure for 2012 was NOK 5 334 million. The reduction in operating revenues for 2013 was mainly due to lower tariff revenues due to planned downward adjustment of tariffs in 2013 and lower congestion revenues.
The Group's operating costs totaled NOK 1 101 million in the fourth quarter of 2013 (NOK 1 114 million). The Group's operating costs for 2013 totaled NOK 4 215 million, compared to NOK 3 901 million for 2012. There are several reasons for the increased costs for 2013, of which the most important are increased system services costs, transmission losses and increased depreciation.
The Statnett Groups investments increased substantially during 2013, in line with the plans to develop the next generation central grid. The Statnett Group invested NOK 6 415 million in 2013, compared to NOK 3 152 million in 2012.
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 4 025 million for 2012 to NOK 5 362 million for 2013. Revenues exceeding the revenue cap will be returned to customers over time through tariff reductions. The lower revenue for 2013 was NOK 958 million, compared to higher revenue of NOK 1 065 million for 2012. Accumulated higher revenue was NOK 2 413 million at the end of 2013 (NOK 3 455 million). The reduction is in line with the plans to reduce accumulated higher revenue over several years.
In 2013, the Group’s profit after tax adjusted for changes in higher/lower revenue after tax and calculated interest on higher revenue was NOK 832 million.
Statnett's Grid Development Plan 2013 form the basis for the next generation central grid, which will be completed by 2030. Statnett will invest considerably in new capacity in the main grid during the next decade. Extensive construction activity is ongoing, and several projects will be completed in 2013 and the following years. Furthermore, Statnett is working to realize the construction of interconnectors to Germany and the UK, which are scheduled for completion in 2018 and 2020 respectively. The investment program aims to maintain the future security of supply, contribute to value creation and pave the way for better environmental solutions in Norway.
Download Statnett SFs - Results Q4 2013 (pdf.)
Chief Financial Officer
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