Statkraft sees softer demand after record profit

OSLO, Feb 26 (Reuters) – Norwegian power company Statkraft posted record-high profits for 2008 on Thursday, helped by an asset swap with Germany’s E.ON EONG.DE, but said demand and prices were likely to fall amid the global economic crisis.

Earnings at the Nordic region’s third biggest power producer were also lifted in 2008 by higher electricity prices, increased output and solid results from hedging activities, state-owned Statkraft said in a statement.

“It is expected that prices and demand for power could fall in the short to medium term, as a result of the global financial crisis,” said Statkraft, which is the No. 3 Nordic power generator after Sweden’s Vattenfall and Finland’s Fortum (FUM1V.HE). “The long-term consequences are more unsure.”

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