English summary – fiscal year 2021

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 (73,1 %). 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 20 hydroelectric power stations. The annual production of SKS Produksjon is about 2 035 GWh.

SKS Produksjon ASholds 50 percent of the shares in Smisto Kraft AS. Smisto Kraft AS builds new power plants, planned to open in 2020/2022. The project has been delayed. One of the aggregates has been started, the other is expected to be ready for production during 2022. 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, 71,7 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.


The year 2021 granted an acceptable result for the Salten Kraftsamband group. Power prices of our power plants price area, NO4, varied between 0.30 and 0.50 NOK per kWh for the better part of the year. The system-price in the Nordic region increased considerably in the last half of 2021, mainly as a consequence of higher prices of thermal energy; low water inflow in southern Norway; and increased cross-border power exchanges capacity.

Power prices in Europe strongly influenced power prices in southern parts of Norway. It did not affect the prices in NO4 the same way, with the exception of two weeks in November. Because of a breakdown at Salten Trafo, belonging to Statnett, Salten Kraftsamband group was not able to fully utilize its production capacity in that period.

During the summer of 2021 the group was involved in the establishment of the company Yve AS. Yve is the parent company for the wholly owned subsidiaries Polarkraft AS and Kraftriket AS, both end-user companies. Salten Kraftsamband’s 30 percent ownership in Polarkraft AS were used as a property contribution in the new company, and replaced with 15 percent of the shares in Yve AS.

Average spot price of NO4 was 0.36 NOK per kWh in 2021. This is an increase of 0.26 NOK per kWh from 2020. The Nordic system price was 0.63 NOK per kWh in 2020, compared to 0.12 in 2020.

Total precipitation in our production area was almost at normal level in 2021. Total water inflow in our area corresponded to a production of 2,050 GWh. Total hydropower production in 2021 amounted to 2,063 GWh, while the corresponding figure for 2020 was 2,146 GWh. The filling of water reservoirs were 79 percent both as we entered 2021 and at year end. Normal reservoir level by year-end is 68 percent. Snow reservoirs were calculated to 327 GWh by year end, about normal level.

SKS Produksjon AS had a power production of 1 997 GWh in 2021. SKS Produksjon delivered an operating profit of 362.6 MNOK in 2020. Net income after taxes was 163.7 MNOK

Rødøy-Lurøy Kraftverk AS (RLK) had a power production of 66.7 GWh. Operating profit were 11.5 MNOK in 2020. Net profit was 8.0 MNOK.

SKS Handel AS’ level of activity in 2021 was high due to volatile market prices of power and guaranties of origin. The operation profit in 2021 was 22.5 MNOK. Net profit was 16.7 MNOK in 2021.

The parent company reports its result according to NRS (Norwegian reporting standards) and had a Net Profit of 84.2 MNOK.



The Annual Statement for SKS is compiled according to IFRS.

Gross Operating Income of SKS company group was 784.9 MNOK in 2021, compared to 379.8 MNOK in 2020. Operating Profit was 397.2 MNOK and Result Before Taxes 418.1 MNOK, compared to 2020, respectively, 70.9 MNOK and 4.9 MNOK. Taxes was 135.9 MNOK in 2021 compared to 6.5 MNOK in 2020. Net Profit positive 282,1 MNOK compared to negative 1.6 MNOK in 2020.

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 positive 32.5 MNOK. The company groups Total Comprehensive Income for 2020 was positive 314.6 MNOK compared to negative 30.8 MNOK in 2020.

Total equity by year-end was 2 015,2 MNOK, compared to 1 696.4 MNOK in 2020, including share capital of 101 MNOK.