HAFSLUND GROUP'S (HNA) RESULT 4 QUARTER 2000
Results for the fourth quarter 2000
The result for the group in the fourth quarter is affected by a high volume of generation for power generation in Norway and continuing good results from power trading in the USA.
Income after taxes for the Hafslund group at the fourth quarter was NOK 76 million (NOK 53 million), corresponding to earnings per share of NOK 0.60 (NOK 0.46). Operating profit in this period amounted to NOK 164 million (NOK 86 million).
Operating profit for 2000 was NOK 438 million (NOK 211 million), income after taxes NOK 398 million (NOK 486 million) and earnings per share NOK 3.34 (NOK 4.12).
Hafslund Generation
Operating profit at Hafslund Generation in the fourth quarter was NOK 132 million (NOK 86 million). The total power generation in this period was 1,005 GWh (739 GWh).
Operating profit in the fourth quarter for Hafslund's Norwegian power stations was NOK 123 million (NOK 62 million). Power generation in the fourth quarter was 963 GWh (687 GWh), this alone giving a positive contribution of NOK 37 million, compared to fourth quarter 1999. Power generation in the fourth quarter was the highest yet as a result of abundant precipitation in the autumn. This led to generation amounting to 50% more than the normal level. In addition to high power generation, the result is reflected by a positive contribution of NOK 23 million due to the restructuring of the generation hedge. Achieved sales price for the fourth quarter was NOK 15.7 øre/kWh (NOK 14.0 øre/kWh).
Operating profit in the USA was NOK 9 million (NOK 24 million) in the fourth quarter and reflects lower power generation in the hydro-electric power stations along with a provision of NOK 7.5 million related to an agreed powercontract. The power generation in this quarter was 42 GWh (52 GWh).
Hafslund Distribution
The basic operations of the group's wholly-owned grid activities have been stable in the fourth quarter of 2000. The operating profit for this quarter was NOK 17 million (NOK 20 million), giving a dividend of 3.3% (3.3%) on the official regulators asset value capital in the fourth quarter.
The group's wholly owned grid activities in the Østfold and Haram district have been sold with accounting effect from 1 January 2001. This segment is therefore presented in the table other business units on page 3 and under important transactions. Hafslund's commitments in grid activities after this comprises ownership interests in Viken Energinett (33%), Mjøskraft (49%) and Elverum Nett (49%).
NOK 9 million has been taken to accounts under results from associated companies in 2000. This mainly concerns the investment in Viken Energinett (25%). The basic operations in Viken are reflected by considerable costs associated with the development of new operations. The group's investment in Mjøskraft, with a cost price of NOK 335 million, is also presented as an associated company. Book value of the group's total minority investments in grid activities was NOK 1,670 million at the end of the year.
Hafslund Power Trading
This profit segment has been revised in relation to the previous Hafslund Markets, and now consists only of power trading operations in the Nordic countries and the USA. The portfolio activities have been sold and are presented under other business units.
Operating profit for Hafslund Power Trading in the fourth quarter was NOK 38 million (NOK 10 million), of which NOK 40 million is derived from power activities in the USA. The good result for the fourth quarter in the USA is mainly due to deals in the regular power market by utilising effects related to transfer problems, and physical trading on the PX and ISO exchanges. Great uncertainty both market-wise and politically has led to an almost total lack of activity in power trading in the USA from December 2000 to the present time.
Hafslund End User
With accounting effect from 1 January 2000, Hafslund Energi was merged to form Tindra Energi AS. At the beginning of 2001, Hafslund's power sales activities consist of ownership interests in Tindra Energi AS and Økokraft AS. The group's total booked investment in end user market was NOK 391 million at the turn of the year.
Hafslund Invest
The business area Hafslund Invest had an accounting result from investments of NOK 46 million (NOK 34 million) in the fourth quarter.
Hafslund's financial marketable securities portfolio had a return of -13.3% in the fourth quarter compared with the Oslo Stock Exchange total index of -13.5% . The return for 2000 was 22.5% compared with -1.7% for Oslo Stock Exchange total index. Book value of the financial marketable securities portfolio at the end of 2000 was NOK 812 million. Unrealised earnings at the end of 2000 are NOK 75 million, a reduction of NOK 199 million from the beginning of the fourth quarter. The accounting result in the fourth quarter was NOK 66 million (NOK 4 million) for the portfolio of financial marketable securities.
The accounting result from long-term investments was NOK -20 million in the fourth quarter. The result is reflected by write-downs NOK -17 million.
Other business units
Other business units, which consist of Hafslund Alfa, Corporate staff, Orion System, Agriculture and Hafslund Manor along with winding down the previous Hafslund Markets, had an operating result in the fourth quarter of 2000 of NOK -5 million (NOK -9 million).
Important transaction in the fourth quarter
- The merger between Hafslund Energi, Din Energi AS and Østkraft AS has been formally established in the fourth quarter. Hafslund has an ownership interest of 36.6% in the merged company, Tindra Energi AS. Other large shareholders are Akershus Energi with 38.0% and Energiselskapet Buskerud with 24.5%. Tindra Energi has a customer base of around 250,000 customers. The merger has accounting effect from 1 January 2000. Quarterly figures previously presented have been revised as a result of this.
- With accounting effect from 22 December 2000, Hafslund has sold all shares in Haram Energi AS to Vestnes Energi AS. The total sales amount for the shares, including taking over a subordinated loan, was NOK 97 million. Hafslund has incorporated earnings of NOK 9 million in the fourth quarter as a result of the sale.
- With effect from 22 December 2000, Hafslund has sold the company's class A shares in Tussa Kraft AS (9.53 %) for NOK 136 million. The accounting gains of NOK 12 million are incorporated in the fourth quarter of 2000.
The group's results report for 4 quarter 2000 is available at the companys head office in Karenslyst Alle 11, at the Oslo Stock Exchange and on the Internet address: http://www.huginonline.com/Norway/HNA/
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