HAFSLUND GROUPS (HNA) RESULT 1 QUARTER 2000
The result for the group in the first three months is affected by low attained sales prices in the generation activities in Norway along with a good return on marketable securities, Actinor Shipping and from the sale of shares in ElTele Østfold AS
Income after taxes for the Hafslund group in the first three months was NOK 156 million (NOK 119 million), corresponding to earnings per share of NOK 1.34 (NOK 0.99). Operating profit in the first three months amounted to NOK 47 million (NOK 63 million)
Hafslund Generation
Operating profit for Hafslund Generation in the first three months was NOK 58 million (NOK 61 million). Generation in the first quarter was 630 GWh (580 GWh), which was 15% over the average. The higher production in Norway is mainly due to abundant snow melting in the Glomma river system resulting from the mild winter
The operating profit for Hafslunds Norwegian power stations was NOK 35.5 million (NOK 43.5 million). The result is affected by lower attained sales prices of NOK 12.0 øre/kWh (NOK 14.6 øre/kWh). The higher volume generated compensates for some of the negative price difference
Hafslund Distribution
Operating profit before goodwill for the first three months was NOK 18.6 million (NOK 20.0 million), giving a dividend of 4.2 % on the official regulators asset value capital. The local grid in Skedsmo & Sørum (SSE) was sold with effect from 1 January 2000. The deviation in the operating profit compared with the first three months of 1999 is mainly due to the sale of the local grid in SSE. A total of NOK 7.6 million has been taken to income from the group's grid investments in associated companies
Hafslund Markets
The operating result for Hafslund Markets in the first quarter was NOK -1 million (NOK -7 million). Power trading activities in the Nordic countries had a trading profit of NOK 9 million before operating costs (NOK 0.8 million) in this period. The operating profit from the power trading activities in the USA in the first quarter was NOK -2.0 million. NOK 1.2 million is taken to income in the first quarter from associated companies
Hafslund Energy
The operating result was NOK -5.0 million (NOK -2.0 million) in the first three months. The result is affected by lower attained margins compared with the first quarter of 1999. Of the total operating costs of NOK 7.3 million (NOK 5.9 million), marketing expenses in connection with recruiting campaigns account for just under NOK 1.5 million (NOK 0 million). NOK 2.0 million is taken to income from associated companies
Hafslund Invest
The division Hafslund Invest had an accounting result from investments of NOK 217 million (NOK 171 million) in the first quarter. Hafslunds marketable securities portfolio had a return of 13.2% in the first quarter compared with the Oslo Stock Exchange total index of -1.0%. Book value amounted to NOK 727 million as of 31.03.2000, and unrealized were NOK 255 million, an increase of NOK 26 million from the end of 1999. The accounting result in the first quarter was NOK 115 million (NOK 153 million). The accounting result from long-term investments was NOK 102 million in the first quarter. Of this, NOK 72 million is income from the sale of the shares in ElTele Østfold AS
Other transactions
Other transactions, which consist of investments activities, Hafslund Alfa, Corporate staff, Orion System, and Agriculture and Hafslund Manor, had an operating profit in the first quarter of 2000 of NOK -21 million (NOK -6 million). Included in these figures is the amount of around NOK 8 million in connection with the proposed merger with Elkem Energi
Important transactions in the first quarter of 2000
At the beginning of March, Hafslund sold its share in ElTele Østfold AS to the Dutch company UPC NV. When establishing the company, the three founders (Hafslund, Østfold Energi and Fredrikstad Energiverk) intended to use their expertise and geographical presence to build up a high-speed tele-net. Three years after start-up, the tele-net was operative and offered advanced tele services. Further development of the company presumably requires a larger tele-operator to integrate the net with its own products to form a national range of services
Hafslunds shareholders voted against the proposed merger between Hafslund ASA and the energy activities in Elkem at the extraordinary general meeting on 12 April 2000
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