By Nora Buli
OSLO (Reuters) -Norway's largest utility Statkraft on Thursday posted record fourth-quarter operating profits of 23.7 billion Norwegian crowns ($2.28 billion) as high power prices and a profitable trading business offset lower production.
Statkraft's underlying earnings before interest and tax (EBIT) rose from 9.3 billion Norwegian crowns a year ago, while net profit increased to 14.5 billion crowns from 3.9 billion crowns.
Full-year underlying EBIT rose to a record 54.4 billion crowns from 26.8 billion crowns in 2021.
"Statkraft achieved record revenues and results in both the fourth quarter and the full year 2022, driven by high prices, stable operations, successful energy management and excellent market operations," the company said in a statement.
The benchmark Nordic system power price averaged 135.61 euros per megawatt hour in the fourth quarter, up from 96.26 euros/MWh for the same period in 2021.
Energy markets across Europe soared last year on lower Russian gas volumes and a drop in French nuclear supply as well as weaker hydropower production, although prices in the fourth quarter fell from record highs seen in the third quarter.
Statkraft's total power generation was 15.4 terawatt hours (TWh), 3.1 TWh lower than the fourth quarter generation the previous year.
The company's Market Operations business posted an underlying EBIT profit of 4.2 billion crowns in the quarter, up from a 2.4 billion crown loss a year earlier.
Statkraft proposed to pay a record dividend of 17.2 billion crowns to its owner, the Norwegian state.
($1 = 10.4170 Norwegian crowns)