Hafslund – Result for Q1 2017: On a par with previous year's record result
Hafslund posted EBITDA of NOK 940 million in the first quarter of 2017. This was NOK 30 million, or three percent, lower than the comparable prior-year quarter due to milder weather and lower energy production.
“The result is good, despite mild weather. At normal temperatures, the result would have exceeded last year's record result,” confirms CEO Finn Bjørn Ruyter.
Networks posted EBITDA for the quarter of NOK 394 million, which was on a par with the previous year.
Heat’s EBITDA for the quarter came in at NOK 252 million, which represents a 33 percent decrease compared with the same period the previous year. Energy sales were lower due to a quarter with three degrees milder weather than normal.
Production returned EBITDA for the quarter of NOK 86 million, down NOK 9 million on the same period the previous year. Power production was 14 percent lower than the first quarter of 2016, while achieved income was up 0.03 NOK/kWh on the comparable prior-year quarter.
Markets posted EBITDA for the quarter of NOK 202 million, which was on a par with the previous year. The number of customers has increased by 20,000 from the first quarter of last year, bringing the total number of customers to 1,092,000. The year-on-year increase in the customer base and higher power prices generated small growth despite the fact that the delivered volume was 7 percent lower than in the same period the previous year due to mild weather.
On 26 April 2017 Hafslund’s two largest shareholders, the City of Oslo and Fortum, who together own 91.3 percent of voting rights in the company, entered into an agreement under which the City of Oslo will purchase Fortum’s shares in Hafslund ASA, buy out the remaining shareholders, and remove the company from listing on Oslo stock exchange.
The City of Oslo and Fortum will then implement several transactions, after which Hafslund’s current businesses will be owned as follows:
Hafslund Network will be wholly owned by the City of Oslo.
Hafslund Markets will be wholly owned by Fortum.
Hafslund Production will be 90 percent owned by the City of Oslo’s power company E-CO Energi and 10 percent by Fortum.
Hafslund Heat and the Klemetsrud facility will be merged. The City of Oslo and Fortum will each own 50 percent of the merged company.
Implementation of the transaction is contingent on approval from the meeting of Oslo City Council on 14 June and from the licensing and competition authorities. The transactions are expected to be completed in the third quarter of 2017.
“We in Hafslund are proud of the results the Group has achieved in recent years. We have generated growth in all our business areas, and consistent results improvements over the last five years. We are currently experiencing our highest growth and investment levels ever and together with ongoing improvement work this will provide a platform for solid profit growth in the years to come,” explains Hafslund CEO Finn Bjørn Ruyter.
“In the coming months, in particular in the run-up to the transaction, the focus will be on ensuring customer delivery, stable and good operations, maintain the competence and the good development of the company, so that the company’s values are enhanced regardless of whether or not the transaction is completed,” concludes Ruyter.
The Board and administration will facilitate the necessary processes relating to the announced transaction. The Board will obtain an independent valuation and issue a statement on the offer to the shareholders.
You can read the report at www.hafslund.no/reports
Oslo, 3 May 2017
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