Hafslund – Third quarter 2013: Improvement in results and capital release
Hafslund posted EBITDA of NOK 633 million in the third quarter, up from NOK 382 million in the comparable prior-year period. Operations contributed an increase of NOK 143 million. An increase in power market prices of NOK 0.10/kWh compared with the same quarter last year helped boost the results of both hydropower production and heat. Power sales customers passed the one million mark after the shareholding in Energibolaget i Sverige (EBS) was raised from 49 per cent to 100 per cent.
The achieved power price for hydropower production in Glomma was NOK 0.25/kWh, which was up NOK 0.10/kWh on the same quarter the previous year. Despite little precipitation, and 11 per cent lower power production than in the third quarter of 2012, EBITDA for hydropower production virtually doubled.
The new pellets plant at Haraldrud entered trial operation last winter, and will be formally opened on 7 November.
“The plant will help to further boost the percentage of renewable energy in the district heating system in Oslo, from 95 per cent the last 12 months. Higher forward prices in the wholesale power market are directly resulting in higher revenues. This will boost the results from district heating next winter,” explains CEO Finn Bjørn Ruyter.
The change in regulatory conditions has lifted Networks’ earnings levels. At the same time Hafslund Nett is returning previous excess income to network customers, and thus preventing increases in network tariffs. Higher maintenance activities resulted in slightly higher operating expenses. Total EBITDA rose by NOK 42 million compared with the same quarter last year.
The contribution from Power sales is being maintained, despite slightly lower margins. The number of new customers rose by 12,000 to 939,000 at the end of the quarter. Following the purchase of the remaining 51 per cent shareholding in Energibolaget i Sverige AB (EBS) the number of customers passed the one million mark.
“With EBS now a wholly owned subsidiary, Hafslund now has a stronger foothold in the Swedish market and has the opportunity to further develop the company by utilising expertise and knowledge from the other power companies. At the same time the company will be able to leverage even greater benefits of scale,” Ruyter confirms.
The result includes a profit of NOK 90 million on the sale of Infratek, and capital released of NOK 386 million from the sale has boosted the Group’s financial position.
“The concentration on core businesses we have implemented in recent year means that we are now in a position to pursue available growth opportunities within core operations,” comments Ruyter.
Read the full shareholders’ report at http://www.hafslund.no/english/reports (http://www.hafslund.no/english/reports).
Hafslund ASA
Oslo, 24 October 2013
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