3rd tertiary 1999


Income before taxes for the Hafslund group was NOK 633 million (NOK -226 million). The result has been affected by a good return on the financial investments. Earnings per share were NOK 4.12 (NOK -1.61). Operating revenues in 1999 were NOK 1,531 million (NOK 1,966 million), and the operating profit was NOK 211 million (NOK 313 million). An ordinary dividend of NOK 1.20 per share for 1999 will be proposed to the Annual General Meeting (NOK 1.10).

The core operations have in 1999 been affected by low electricity prices, launching of Hafslund Energy as a national retail supplier, a negative trading result in the American power trading entity and the one-off effects of settling power contracts and pension liabilities

Hafslund Generation
Generation in 1999 was 3,116 GWh (3,195 GWh), and was thus 7% above average statistical generation. For Hafslund’s Norwegian power plants, the operating profit was NOK 220 million (NOK 228 million). The result was affected by low attained sales prices of NOK 11.9 øre/kWh. (NOK 12.3 øre/kWh).

Hafslund Distribution
Operating profit for 1999 was NOK 80 million (NOK 45 million). During 1999, Hafslund has considerably strengthened its role as distribution network owner. With Viken Energinett, Hafslund purchased the distribution activities in the municipalities of Asker and Bærum. Hafslund has acquired a 25% ownership interest in Viken Energinett (effective from 31.12.99) by contributing the ownership interest of 50% of EAB Nett, Skedsmo og Sørum Nett (100%) along with a cash amount of NOK 737 million. The agreement and cooperation with Viken form a good basis for Hafslund’s possibilities for participating in the further restructuring of the distribution network activities in South Eastern parts of Norway.

Hafslund Markets
Operating profit for Hafslund Markets was NOK -53 million in 1999 (NOK 5 million). The result is greatly affected by a negative operating profit in USA of NOK -57 million due to an unsuccessful positioning linked to the coldest summer in California for 60 years. The power trading company Hafslund Delta had a trading profit of NOK 31 million (NOK 23 million) before operating expenses.

Hafslund Energy
Hafslund Energy had an operating profit of NOK -43 million (NOK -18 million), including depreciation of customer portfolios of a total of NOK 7 million (NOK 5 million) and costs of NOK 13 million in connection with the take-over of power contracts. The result is affected by the establishment of a central marketing unit and systems for handling further growth. Hafslund Energy has increased its ownership interest in Din Energi AS (ownership interest 47%) in 1999, purchased 3,600 customers in Rakkestad, and has acquired customers through campains. Directly and indirectly, Hafslund Energy has access to a customer base of 180,000 customers at year end. The company’s ambition is to participate in the establishment of a leading Norwegian end-user company through consolidation, acquisitions and organic growth.

Hafslund Invest
The division had an accounting result from investments of NOK 701 million (NOK -344 million) in 1999. Hafslund’s marketable securities portfolio had a return of 69.2% in 1999 compared with the Oslo Stock Exchange total index of 45.5%. Book value amounts to NOK 873 million as of 31.12.99, and unrealised earnings were NOK 229 million. The accounting result in 1999 was NOK 646 million (NOK -334 million). Book value of long term investments amounts to NOK 1,152 million as of 31.12.99 and includes NOK 555 million in associated companies. A profit of NOK 69 million from associated companies was taken to income in 1999.

Other activities
Other activities, which consist of investment activities, Hafslund Alfa, Corporate staff, Orion System, Tensil (until 01.07.99) and Agriculture and Hafslund Manor, had an operating result of NOK -71 million (-6 million). The result is affected by the one-off effects associated with earnings from the sale of Skedsmo & Sørum Nett (NOK 19 million), early retirements packages (NOK -20 million) and the termination of the power contract with Østfold Energi (NOK -24 million. Hafslund Alfa (established as building contractors as of 01.01.99), had an operating income of NOK -9 million.

Development so far in 2000
Hafslund ASA entered into an agreement of integration with Elkem ASA on 23 December 1999 on merging the energy activities in Elkem against a settlement in shares corresponding to 45% of Hafslund ASA. This transaction will be brought to a vote in the corporate assembly of Hafslund end of February. The Annual Meeting is expected to be held 28 March 2000. The merged company will double the production capacity, and will strengthen the company’s position as a leading listed power company. Hafslund’s strategy will be continued in the new company.

The group’s preliminary results report for 1999 is available at the company’s head office in Karenslyst Alle 11, at the Oslo Stock Exchange and on the Internet address: http://www.huginonline.com/Norway/HNA/

For full 3rd tertiary report including tables, follow the enclosed link:


  • Hafslund


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