EU UTILITIES: Statkraft: Strategic Review
Jun-20 09:04
(STATK; A3/Aneg/A-neg)
Slightly negative as ratings pressure increases. Execution of planned asset sales will be pivotal.
- Statkraft provided a strategy update, with a focus on profitable core activities, hydropower and local onshore wind.
- Growth in Europe and South America will continue but at a slower pace.
- It will not start new offshore wind projects. Development in Portugal will be halted, and Poland will be assessed.
- Halting new hydrogen projects and planned divestments were previously announced.
- The company is targeting NOK2.9bn in cost savings annually by 2027 due to the narrowed focus, a 15% reduction vs FY25 expectations.
- It updated its annual investment target to NOK16-20bn. S&P outlined NOK13-17bn expected when it revised outlook to negative in March.
- S&P is mainly on FFO/Debt, but the increased outlay could drag on DCF/Debt by 1-2% holding FFO and dividends constant.
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May-21 08:49
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