Norwegian Utility Statkraft Reports NOK 6.5bn Q2 Loss Amid Falling Power Prices

Norwegian renewable energy company Statkraft reported a significant net loss of approximately $640 million in the second quarter of 2025, a sharp decline from the prior year's loss, primarily due to impairments tied to lower expected future power prices in the Nordic region and other markets. Underlying EBITDA fell 31% year-on-year to NOK 4.5 billion (€378m), reflecting the impact of declining power prices and reduced contributions from its markets business unit. The company is responding by scaling back investments in certain regions and technologies, aiming to reduce annual costs by NOK 2.9 billion (€244m) by 2027, which will include job redundancies. CEO Birgitte Ringstad Vartdal stated that Statkraft is adjusting its strategic ambitions to focus on core competitive advantages and near-term profitable opportunities amid challenging market conditions and geopolitical uncertainties. Despite the setbacks, the company remains committed to contributing to energy security and the energy transition, with a focus on solar, onshore wind, and battery-related projects. Fitch Ratings downgraded Statkraft’s credit rating from A- to BBB+ due to weakening financial performance and metrics.