Hafslund – Result for Q1 2015: Stable operations and improved result

Hafslund posted first-quarter EBITDA of NOK 777 million, up from NOK 755 million in the comparable prior-year quarter. Demand for energy and achieved power prices were on a par with the previous year, while power production was much lower than the record figures achieved in the first quarter of 2014.

“We are now getting results from the Networks business in Østfold that was purchased in the second quarter of 2014. Together with stable underlying operations, and results improvements in the other areas, this is helping to offset reduced profits from the hydropower business,” explains President and CEO Finn Bjørn Ruyter.

As in the comparable prior-year quarter, district heating was low due to mild weather and lower-than-normal demand for energy. Hafslund Heat is increasing sales to new customers, including by offering customers wishing to replace old oil-based heating a sound, renewable alternative.

Power Sales improved its year-on-year operating result by 14 per cent.

“Competition between power companies is becoming increasingly tough. In order to deal with this competition, the power companies have introduced various electricity-related benefit products. At the end of the first quarter, around half of all customers had opted for this type of agreement. This is resulting in more satisfied customers and improving results” comments Ruyter.

There were relatively few operational stoppages in the power network, primarily due to low levels of wind and precipitation. The Networks business in Østfold, which was acquired in the second quarter of previous year, contributed to the year-on-year improvement in results in the first quarter.

The integration of the Networks business in Østfold is proceeding according to plan, and is expected to be concluded by the end of 2015. The integration is an extensive and demanding project. In addition, since the start of the year Networks has entered into agreements to purchase 700,000 automatic electricity meters and for the installation of meters, infrastructure and networks substation monitoring systems. The implementation of IT systems, test programmes and installation planning are all in full swing.

“Everyone across the entire organisation is performing a great deal of high-quality work” comments CEO Finn Bjørn Ruyter.

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

Hafslund ASA
Oslo, 7 May 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