By Nora Buli
OSLO (Reuters) -Statkraft's fourth-quarter operating profit fell by 51.5% hurt by lower electricity prices and smaller hedging gains, Norway's largest utility said on Friday.
Its underlying earnings before interest and tax (EBIT) fell to 11.5 billion Norwegian crowns ($1.08 billion) from 23.7 billion.
"The decrease was mainly driven by lower power prices, partly offset by higher power generation. Hedging gains were lower compared to the same quarter in 2022," the company said in a statement.
Its net profit declined to 5.9 billion crowns from 14.5 billion.
The benchmark Nordic system power price averaged 57.68 euros per megawatt hour in the fourth quarter, down 57.5% from 135.61 euros/MWh a year earlier, data from power exchange Nord Pool showed.
Prices were no longer at "crisis-like" levels though still higher than before the 2022 spikes caused by the loss of Russian gas supply to Europe, CEO Christian Rynning-Toennesen told reporters.
"We believe prices will rise a little bit again, but not that much," he said.
With the impact of prices hedged at 2022's high levels ebbing as well, Statkraft earnings in 2024 would continue to be impacted by the overall lower prices, Rynning-Tønnensen said.
Statkraft's fourth-quarter power generation rose to 18.2 terawatt hours (TWh) from 15.3 TWh a year earlier.
On a full-year basis, Statkraft posted an underlying EBIT of 41.4 billion crowns, down 23.9% from a record 54.4 billion but still its second highest result.
Statkraft proposed a dividend of 13 billion crowns to its owner, the Norwegian state.
($1 = 10.6174 Norwegian crowns)