Hafslund – Result for Q3 2016: Year-to-date profit after tax pass NOK 1 billion in third quarter

Hafslund posted a profit after tax of NOK 255 million for the third quarter, the best third-quarter result since 2007. At NOK 1,019 million, year-to-date third-quarter earnings passed the NOK 1 billion mark for the first time since 2007.

“The results improvement reflects our ability to continuously implement improvements that impact the bottom line” commented Hafslund CEO Finn Bjørn Ruyter.

Networks posted third-quarter EBITDA of NOK 411 million, which were up NOK 61 million on the same quarter the previous year. Operating expenses were NOK 39 million down on the comparable prior-year quarter.

“Networks is delivering cost improvements by leveraging synergies on the back of the acquisition of the Networks business in Østfold and through ongoing cost-efficiency projects,” confirms CEO Finn Bjørn Ruyter.

Heat posted negative EBITDA of NOK 12 million, compared with positive NOK 6 million in the same quarter the previous year. District heating production is normally low in the quarter, and was down 15 GWh on the comparable prior-year quarter due to higher temperatures. Operating expenses were NOK 3 million higher than the previous year due to measures to upgrade the district heating network.

Production’s EBITDA for the quarter came in at NOK 113 million, compared with NOK 119 million in the same period the previous year. The achieved power price for the quarter was 0.20 NOK/kWh, compared with 0.17 NOK/kWh in the third quarter of 2015, while hydropower production was 22 percent lower.

Work to expand the Vamma Power station is on schedule for completion before the spring flood in 2019. Cumulative investments at the end of the third quarter amounted to NOK 299 million, out of a total investment framework of NOK 920 million.

Markets posted EBITDA for the quarter of NOK 131 million, compared with NOK 145 million in the same period the previous year. This represents a good result in a quarter normally characterised by low energy demand. Increased market activities and slightly lower margins are adversely impacting the result. The number of customers has grown by 39,000 to 1,084,000 since the third quarter of 2015.

Hafslund’s role in the green shift

Hafslund is actively contributing to the green shift. The investment in the modernisation of the Vamma power station will generate 230 GWh of new renewable power a year. At the same time, investments are approaching NOK 1 billion each year in upgrading the network to cater for electrification and increased population growth. The 700,000 new smart meters we are installing at our customers will digitalise the power network, provide customers with new opportunities to save energy, and boost quality of supply. The sale of district heating, which now includes district heating for cooling, is increasing in line with the phasing out of oil-fired plants in various parts of Oslo.

“Hafslund has been investing in green and renewable solutions for many years. All our business areas are now renewable, and we are delivering products and services that enable customers to replace fossil fuel with more renewable district heating and electricity. Hafslund is a key facilitator in the migration to a renewable society,” concludes CEO Finn Bjørn Ruyter.

The CEO will review Hafslund’s role in the green shift at today’s results presentation.

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

Hafslund ASA
Oslo, 25 October 2016

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

Head of Finance and Investor Relations, Martin S. Lundby: Tel.: +47 416 14 448, E-mail: martin.lundby@hafslund.no