Statkraft's financial results declined in the third quarter despite record-high power production this year. The Norwegian state-owned energy company reported losses even as it generated more electricity than ever before.
The company faced a tax bill of 1.6 billion Norwegian kroner, primarily from resource taxation on hydropower generation. This resulted in a net loss of 714 million kroner after taxes for the quarter.
Statkraft has now agreed to sell assets worth approximately 13.5 billion kroner to raise capital. The company cited low power prices in Northern Norway as a key factor affecting its performance.
Why would a company with record production still lose money? The answer lies in Norway's unique hydropower taxation system and regional price variations. Northern Norway's isolated grid often experiences lower electricity prices than southern regions.
This situation highlights the complex economics of renewable energy in Scandinavia. Even successful green energy companies face financial pressures from taxation and market conditions.