English summary – fiscal year 2025

Salten Kraftsamband AS (SKS) is a private limited company, owned by Bodø kommune, NTE Energi AS, Jämtkraft AB, Nordlandskraft AS, Fauske kommune, Bodø Energi AS, and Bodø Pensjonskasse.

SKS mission is to run power-related business based on natural resources in the region of Northern Norway. The company supplies the region with stable and renewable electrical energy. SKS is a key player in the business areas of hydropower production, power management, and energy trading, along with related activities. The main office is located at Fauske, and its hydroelectric power production stations in the municipalities of Fauske, Gildeskål, Beiarn, Bodø, Rødøy, Hattfjelldal, and Hemnes.

SKS holds the wholly owned subsidiaries SKS Produksjon AS and SKS Handel AS. SKS partly owns the subsidiary Rødøy-Lurøy Kraftverk AS (73.3 %). Salten Kraftsamband AS owns 50 % of the shares in Siso Energi AS.

Through SKS Produksjon AS, the group owns 100 % of SKS Vindkraft AS, which was established to develop and secure rights related to new renewable energy sources. SKS Produksjon AS partly owns the subsidiary Krutåga Kraft AS (72 %) and Hattfjelldal Kraft AS (92 %).  SKS Produksjon AS has a 50 % ownership stake in the power production company Smisto Kraft AS and 50 % of Vakinn AS; an operation center for power production.

SKS provides subsidiaries with financial and administrative services such as management, accounting, IT, HR, communication, ESG, quality, HMS, strategic planning, and business development.

Fiscal year 2025

The power market in our price area; NO4, was characterized by very low prices for much of 2025. At the beginning of the year, the hydrological situation was strained following a very precipitation-rich final quarter in 2024. Reservoir levels were further challenged by an exceptionally snowy winter in our catchment areas. The risk of flooding, along with potential flood damage, led to controlled water releases from our reservoirs as early as March 2025. The strained reservoir situation persisted through August, and in total, water equivalent to approximately 1.3 TWh of production was released past our turbines.

Also 2025 was characterized by large regional differences. Energy prices in Southern Norway are affected by what happens in Europe and by electricity exports through several cables to other countries. Northern Norway has considerably lower prices and is strongly affected by wind power production in Northern Sweden. Limited transmission capacity, combined with significantly higher production than consumption, regularly leads to price pressure in NO4.

With an increasing share of renewable energy in the power system, particularly wind and solar power, electricity production has become more variable. Shorter time resolution enables faster responses to weather changes and production deviations. Throughout 2025 the entire short-term energy market shifted from hourly to 15-minute resolution. This has led to increased volatility, faster decision-making processes, and a market that rewards those who can act precisely and efficiently. The Board is of the opinion that SKS has adapted well to the new market conditions.

During 2025, the group has strengthened its emergency preparedness focus. More resources have been allocated to systems, training, and exercises conducted in cooperation with other critical societal actors.

SKS Handel AS’ operation profit in 2025 was 25 MNOK, compared to 32 MNOK in 2024. Net profit was 24 MNOK, compared to 35 MNOK in 2024.

Power production

Total hydropower production in 2025 amounted to 1,997 GWh, while the corresponding figure for 2024 was 1,786 GWh. The 2025 production is 5 % lower than normal production of 2,100 GWh.

SKS Produksjon AS had a power production of 1,912 GWh, compared to 1,711 GWh in 2024. Operating profit was 216 MNOK in 2025, compared to 392 MNOK in 2024. Net income after taxes was 74 MNOK in 2025, compared to 222 MNOK in 2024.

Rødøy-Lurøy Kraftverk AS had a power production of 83 GWh. Operating profit were 6 MNOK, compared to 12 MNOK in 2024. Net profit was 5 MNOK, compared to 10 MNOK in 2024.

Hattfjelldal Kraft AS had a power production of 2 GWh, lower than expected due to problems with the commissioning of the power plant. Net loss of 2025 was 1 MNOK.

SKS does not include power production from Smisto Kraft AS (194 GWh) and SISO Energi AS (787 GWh) when compilating company group power production.

Hydrology

The filling of water reservoirs was 91 percent as we entered 2025 and 76 % at year end. Normal reservoir level by year-end is 68 %. Snow reservoirs at year end were calculated to 56 % more than normal level.

During the winter and spring, electricity prices fell from NOK 109/MWh in January to a level between NOK 25 and 50/MWh through October. The hydrological situation, with high reservoir levels and an exceptionally large snowpack, combined with low electricity prices, necessitated active flood mitigation measures. Total inflow in the area corresponded to a production potential of 2,220 GWh in 2025.

Throughout the year, extraordinary releases from the reservoirs were carried out to manage inflow and reduce flooding. The total volume of these measures corresponded to a potential electricity production of 1,288 GWh.

Towards the end of the year, electricity prices increased, with monthly prices of NOK 357/MWh in November and NOK 317/MWh in December.

Net profit of the year 2025

The Annual Statement for SKS is compiled according to IFRS.

Gross Operating Income of SKS company group was 634 MNOK, in 2024 it was 804 MNOK. Operating Profit was 217 MNOK and Result Before Taxes 230 MNOK. Taxes were 70 MNOK, compared to 172 MNOK in 2024. Net Profit was 159 MNOK, decreased from 288 MNOK in 2024.

The parent company reports its result according to NRS (Norwegian reporting standards) and had a Net Profit of 105 MNOK, compared to 154 MNOK in 2024.

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 164 MNOK. The company group’s Total Comprehensive Income for 2025 was negative 4 MNOK compared to positive 266 MNOK in 2024.

Total equity by year-end was 4,462 MNOK, compared to 4,611 MNOK in 2024, including a share capital of 134 MNOK.

At the Group Board meeting on 26 March 2026, a decision was made not to proceed with the development of the Krutåga power plant. SKS Produksjon AS owns 71.8 % of the company Krutåga Kraft AS. The carrying amount of the project is NOK 55.2 million.