English summary – fiscal year 2020

Salten Kraftsamband AS (SKS) is a private limited company owned by Bodø kommune, Fauske kommune, Nordlandskraft AS, Jämtkraft AB, Bodø Energi AS, and Bodø Pensjonskasse. SKS mission is to run power-related business based on natural resources in the region of Northern Norway. SKS is the largest power producer with corporate headquarter located in the region of Northern Norway. The main office is located at Fauske, and its hydroelectric power production stations is located in the municipalities of Fauske, Gildeskål, Beiarn, Bodø, Rødøy and Hemnes.

SKS aims to be an active contributor to the development of a sustainable society. By using new technology and knowledge, and by strengthening our competence within hydropower, SKS will be an attractive partner in the energy market development. Through internal efficiency and reinvestment in the organization SKS wish to create further activity and build long term values for the region, the society and our stakeholders.

SKS holds the wholly owned subsidiaries SKS Produksjon AS and SKS Handel AS. SKS partly owns the subsidiary Rødøy-Lurøy Kraftverk AS (73 %) and has stocks in Polar Kraft AS (33%). SKS provides the subsidiaries with financial and administrative services such as management, accounting, IT, HR, communication, public relations, strategic planning, and business development.



SKS Produksjon AS is the largest energy production company in Northern Norway, owning 19 hydroelectric power stations. The annual production of SKS Produksjon is about 2 025 GWh.

SKS Produksjon ASholds 50 percent of the shares in Smisto Kraft AS. Smisto Kraft AS builds new power plants, planned to open in 2020/2021. The project has been delayed. One of the aggregates has been started, the other is expected to be ready for production during 2021. Expected annual production from Smisto Kraft AS is about 210 GWh. Total cost of the project had turned out higher than budget at time of investment decision. The contractor, Hæhre Entreprenør AS, and Smisto AS is currently inlegal dispute about the final bill amount. Depending on the outcome of this dispute the shareholders may have to increase equity through contributed capital.

SKS Produksjon AS 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 run an operation center for power production. Krutåga Kraft AS and Hattfjelldal Kraft AS aims to produce power.

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



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 municipalities.

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.


Rødøy-Lurøy Kraftverk AS (RLK) is a power production company with an annual production of about 75 GWh.


Salten Kraftsamband is looking back at a year of record low prices within our core business areas.

The year started with power prices of approximately 0.30 NOK per kWh followed by a rapidly decrease to below 0.10 NOK per kWh. During most of spring and summer the prices were between 0.02 and 0.10 NOK per kWh. The prices fell due to high water inflow to the hydropower plant reservoirs, above-average temperatures, windy weather and startup of new wind power plants. In addition, there were imbalance between demand and supply of electric power in price area NO4. NO4 area prices were below the system-price in the Nordic region. Market prices on coal and gas increased marginally through the year. The price of carbon on the other hand increased considerably to a year end price of record high 40 EUR/EUS.

Moderate natural gas prices and high CO2 costs led to marginal cost of natural gas being lower than of coal.

The total production of electrical power in Norway were 144 TWh in 2020, compared to 126 TWh in 2019.

Average spot price of our power plants price area; NO4, was 0.09 NOK per kWh in 2020. This is a reduction of 0,28 NOK per kWh from 2019.

The Nordic system price was 0.12 NOK per kWh in 2020, compared to 0.38 in 2019.

Total rain- and snowfall in our production area was well above normal level in 2020. Water inflow in our area corresponds to a production of 2 694 GWh, approximately 700 GWh above normal level. Total production of hydropower in 2020 was 2 146 GWh, compared to 1 934 GWH in 2019. Snow reservoirs were calculated to 168 GWh by year end, about 50 percent of normal level. The filling of water reservoirs by year end were 81 percent, compared to 55 percent as we entered 2020. Normal reservoir level by year-end is 63 percent.

SKS Produksjon AS had a power production of 2 066 GWh in 2020, 209 GWh above production in 2019. SKS Produksjon delivered an operating profit of 89.9 MNOK in 2020, 198 MNOK lower than 2019.

Net income after taxes was 52.1 MNOK, 50.7 MNOK lower than the previous year. Effects of hedging partially compensated for low power prices.

Rødøy-Lurøy Kraftverk AS (RLK) had an all-time high production of 81.3 GWh; 4 GWh more than in 2019. Operating profit were 5.0 MNOK in 2020; 11.3 MNOK lower than in 2019.

Net profit was 5.4 MNOK, compared to 6.5 MNOK in 2019.

In 2020 RLK sold its shares in Rødøy-Lurøy Fiber AS.

SKS Handel AS’ level of activity in 2020 was high due to volatile market prices of power, guaranties of origin and electricity certificates. The operation profit in 2020 was 6.7 MNOK, compared to 7.5 MNOK in 2019. Net profit was 6.2 MNOK in 2020 compared to 7.4 MNOK in 2019.

The parent company reports its result according to NRS (Norwegian reporting standards) and had a Net Profit of 11.0 MNOK compared to 38.8 MNOK in 2019.



The Annual Statement for SKS is compiled according to IFRS.

Gross Operating Income of SKS company group was 379.8 MNOK in 2020, compared to 690.2 MNOK in 2019. Operating Profit was 70.9 MNOK and Result Before Taxes 4.9 MNOK, compared to 2019, respectively, 331.5 MNOK and 235.1 MNOK. Taxes was 6.5 MNOK in 2020 compared to 173.4 MNOK in 2019. Net Profit negative 1.6 MNOK compared to positive 61.7 MNOK in 2019.

Unrealized change in value of energy- and interest derivates is recognized at real value according to IFRS, where changes in value are to be recognized in other comprehensive income. The changes in value contributed to the Net Profit by negative 30.8 MNOK. The company groups Total Comprehensive Income for 2020 was negative 32.4 MNOK compared to 217.1 MNOK in 2019.

Total equity by year-end was 1 696.4 MNOK, compared to 1 754 MNOK in 2019, including share capital of 101 MNOK.