English summary – fiscal year 2018

Salten Kraftsamband AS (SKS) is a private limited company owned by Bodø Kommune, Jämtkraft AB, Nordland Næringsvekst AS, Fauske Kommune, Bodø Energi AS and Bodø Kommunale Pensjonskasse. SKS is the largest power producer in in Northern Norway with main office in the region. The main office is at Fauske.

SKS, established in 1956, is an electrical power transmission company. In 1975 it merged to include both a regional transmission network and electricity production, and through the years SKS experienced growth as new activities and subsidiaries was added to the company. In the later years, SKS has focused on cultivating its activities within power production and market services, demerging and selling off other activities.

SKS mission is to run power related business based on natural resources in the region of Northern Norway. The company aims to build values for owner and customers with long term focus. The SKS group is considered an important employer within the region of Salten, and has through half a century contributed with significant values to the region and continues to do so.

SKS serves its social responsibilities in several ways, for example by supporting non-profit organizations, sport teams, and cultural events, and through environmental focus. SKS also participates in, and contribute to industrial and commercial development and educational projects.

SKS holds the subsidiaries SKS Produksjon AS and SKS Handel AS. SKS partly owns the subsidiary Rødøy-Lurøy Kraftverk AS, and has stocks in Polar Kraft AS (33 %). Indirectly SKS partly owns Vakinn AS, Smisto Kraft AS, and Rødøy-Lurøy Fiber AS, Hattfjelldal Kraft AS, and Krutåga Kraft AS. SKS provides the subsidiaries with financial and administrative services.

SKS Produksjon AS

SKS Produksjon AS is the largest energy production company in Northern Norway, owning 19 hydroelectric power stations in the municipalities of Fauske, Bodø, Beiarn, Gildeskål and Hemnes. The annual production in SKS Produksjon is about 2 025 GWh.

SKS Produksjon AS holds 50 percent of the shares in Smisto Kraft AS. Smisto Kraft AS builds new power plants, planned to open in 2019 with an annual production of about 210 GWh. SKS Produksjon AS also holds 50 percent of the shares in Vakinn AS, 63,7 percent of shares in Krutåga Kraft AS and 67 percent of the shares in Hattfjelldal Kraft AS. Vakinn AS will run an operation center for power production starting in 2019. Krutåga Kraft AS and Hattfjelldal Kraft AS aims to produce power.

SKS Produksjon experiences risk exposure through fluctuations in electricity prices. To hedge against such exposure the company engages in forward contracts and contracts for difference according to a defined risk strategy.

SKS Handel AS

SKS Handel AS engages in the power market, offering a wide range of products and services, including energy trading of both physical and financial contracts, portfolio management, and settlement services.

Well-built systems and employees with years of experience make the company able to efficiently manage, and increase the value of energy resources owned by partners and

The department of Portfolio Management is managing energy portfolios for external customers creating significant value for its clients. It has also become a player in the renewable energy certificate market, providing certificates to buyers both domestically and internationally.

The end-user sales merged into Polar Kraft AS effectuated 2018.01.01. SKS Handel will continue to provide services within portfolio management, physical and financial energy trading and settlement.

Rødøy-Lurøy Kraftverk AS

Rødøy-Lurøy Kraftverk (RLK) is a 72,6 percent partly owned subsidiary of SKS. RLK was registered in 1948 and produces electrical power. Its head office lies in Tjongsfjorden in the municipality of Rødøy. The annual production is about 75 GWh. RLK owns 100 % of the shares in the internet fiber company Rødøy-Lurøy Fiber AS.

Power production

The year started with power prices of 0,3 NOK per kWh. Due to thermic conditions prices raised considerably during spring and summer. In July and August prices was close to 0,5 NOK per kWh. Year seen in total prices have not been so high since 2010. Total production of the year was 2 171 GWh, compared to a 2017 production of all time high 2 453 GWh. Water reservoirs at the beginning of 2018 was 57,9 percent and ended on 48,4 % by the end of the year. Normal reservoir level by year-end is 63 percent. Snow reservoirs was calculated to 200 GWh, compared to a normal level of 337 GwH. The filling of water reservoirs during 2018 was 2 094 GwH, 284 GWh less than in 2017.


The Annual Statement for SKS is compiled according to IFRS.
High power production, high area price, high grid cost and high taxes are influencing the net profits this year. Unrealized change in value for energy- and interest derivatives is recognized at real value. This is according to IFRS, where changes in value are to be recognized in other comprehensive income. The changes in value are affecting Net Profit for the year 2018 negatively.
Gross Operating Income is 827 MNOK compared to (including profit from end user sales) 1 028 MNOK in 2017. Operating Profit is 420 MNOK and Ordinary Result before Taxes are 360 MNOK. Taxes are 232 MNOK and the Net Profit is 128 MNOK.
34.4 MNOK in depreciation of excess values is charged to the profit.

Total equity by year-end was 1578 MNOK, including share capital of 101 MNOK.