Hafslund – Result for second quarter of 2015: Best second-quarter result since 2007

Hafslund posted EBITDA of NOK 684 million in the second quarter of 2015. This was NOK 60 million higher than the comparable prior-year quarter, and the best second-quarter result since 2007. The profit after tax came in at NOK 279 million, which equates to earnings per share of NOK 1.43.

The improvement in year-on-year results is primarily attributable to operational improvements, and growth due to the acquisition of the networks business in Østfold last year. Price-hedging of district heating and power production helped to offset the effect of low power prices.

"The consistent improvement in quarterly results, despite falling power prices, shows that the Group's improvement initiatives are paying off. At the same time, changes in the framework conditions will make the need to adapt even greater going forward. This provides us with opportunities we shall leverage to strengthen our competitiveness," comments Hafslund CEO Finn Bjørn Ruyter.

Networks delivers stable and efficient operations. EBITDA improved by NOK 20 million against the comparable prior-year quarter to NOK 330 million. The integration of the networks business in Østfold that was acquired in May last year is proceeding according to plan. During the second quarter all customer and networks data was migrated to Hafslund's systems. Once the planned third-quarter co-location of Hafslund's operating centre functions into a shared centre for all of Hafslund's networks area is complete, the most important milestones in the integration project will have been reached.

“When the integration of the network business in Østfold is completed as planned, Network’s focus will be fully on the introduction of AMS meters and associated IT systems,” says CEO Ruyter.

Markets posted EBITDA of NOK 133 million, which were up NOK 10 million on the comparable prior-year quarter, and represents a good result in a quarter characterised by low energy demand. Extensive work is ongoing to establish an efficient operating organisation to promote further growth in Sweden and Finland.

Demand for district heating is seasonally low in the second quarter. District heating's EBITDA came in at NOK 19 million, which was up NOK 9 million on the same quarter in 2014, primarily due to a cooler spring/early summer than the previous year, and higher energy sales on the back of customer growth.

Hydropower returned EBITDA of NOK 121 million, which were down NOK 22 million on the comparable prior-year period. The reduction is attributable to a lower power price, and slightly lower production from the Glomma power plants. As a result of price-hedging of parts of expected production, the achieved power price was NOK 0.03 per kWh higher than the associated area price on Nord Pool Spot.

"In June the spot price in the Oslo area was as low as NOK 0.12 per kWh, the lowest level since 2002. Hence, in the light of this, it is a pleasure to have delivered a solid second quarter result," comments Hafslund CEO Ruyter.

You can read the report at www.hafslund.no/rapport

Hafslund ASA

Oslo, 10 June 2015

For further information please contact:

Chief Financial Officer (CFO), Heidi Ulmo, Tel: +47 909 19 325, E-mail: heidi.ulmo@hafslund.no

Senior Vice President Corporate Communications and Public Affairs, Johan Chr. Hovland: Tel.: +47 917 63 491, E-mail: johan.hovland@hafslund.no

Financial Director, Morten J. Hansen, Tel: +47 908 28 577, E-mail: morten.j.hansen@hafslund.no