Nordkraft's first-half profit significantly lower due to low power prices

Nordkraft announced a significant drop in its operating profit for the first half of 2025, reaching NOK 15 million compared to NOK 112 million in the same period of 2024. The company's net result after tax was NOK -26.8 million, a decrease of NOK 71.7 million from the first half of 2024, largely attributable to low electricity prices in Northern Norway. The average power price in NO4 was NOK 6.6 øre/kWh, substantially below the 20-year average of NOK 30 øre/kWh. Despite these challenges, Nordkraft achieved an average power price of NOK 8.4 øre/kWh through production optimization.

Net revenue increased by NOK 26.4 million to NOK 264.2 million, primarily due to reduced balancing costs. However, net financial costs surged to NOK 64.0 million in the first half of 2025, up from NOK 23.2 million in 2024, influenced by negative fair value adjustments on interest rate contracts and increased net interest-bearing debt. Total operating expenses, including depreciation, rose from NOK 385.0 million in the first half of 2024 to NOK 400.2 million in 2025, reflecting higher central grid costs and growth in personnel.

The company's net business area saw a positive development, with operating income increasing by NOK 12.8 million to NOK 274.7 million and operating profit improving by NOK 42.4 million to NOK 86.7 million, overcoming the impact of severe weather-related costs in the previous year. Nordkraft continues to focus on its role in the green shift, working to facilitate industrial establishment in the region by bringing industry closer to energy sources.