"The sound trend in the first quarter this year has continued through the second quarter. Underlying operations have been good, and all operational entities have progressed well in terms of results compared with second-quarter 2008," says Hafslund's President and CEO, Christian Berg.

Major projects underway
Hafslund is investing substantially in renewable energy. This includes both hydropower, drawing on Hafslund's impressive 110 years' experience, and heating, based on a variety of energy sources.

"In Oslo, we are now rapidly developing our district heating network, and aim to double our deliveries in the next 5-7 years, based primarily on waste incineration, bioenergy and heat pumps. We are building a new energy recovery facility in Sarpsborg, on Borregaard's industrial site, which will replace 20,000 tonnes of heavy fuel oil and cut greenhouse gas emissions by over 50,000 tonnes. The new facility will be ready for trial operations at the turn of the year. In the spring and early summer of next year, we will start trial production of wood pellets at our new plant at Averøy, the largest of its kind in Europe. We are also increasing hydropower output on the Glomma river, partly by building new facilities and partly by modernising the existing plants," adds Christian Berg.

Solid cash flow
Hafslund posted a second-quarter operating profit of NOK 315 million, with cash flow from operations totalling NOK 731 million. Profit after tax was NOK 160 million.
 
Increased sales revenues
Second-quarter sales revenues totalled NOK 2,305 million, NOK 381 million up on first-quarter 2008. The increase is largely owing to higher market prices for electricity on the Nord Pool power exchange.

 

Power generation at normal levels
Power generation for the second quarter totalled 902 GWh, 3 per cent less than second-quarter 2008 and on a level with normal output.

More district heating
District heating output rose by 6 per cent during the quarter. District heating prices follow electricity prices and, consequently, sales revenues rose by 31 per cent. The new district heating pipeline between Klemetsrud and Oslo city centre was officially opened on 23 June. The pipeline has a transmission capacity of 500 GWh, capable of satisfying the heating needs of 50,000 homes.

 

Hafslund has subscribed for 24.3 million shares in the rights issue in REC and, as a result, will maintain its 14.24 per cent stake in the company.

For more information, please contact:

 

Karen Onsager, SVP Communications and CR

Mobile: +47 92 08 70 07

E-mail: karen.onsager@hafslund.no

 

Morten J. Hansen, Finance Director

Mobile: +47 90 82 85 77

E-mail: mjh@hafslund.no

 

Lars Ove Johansen, Investor Relations Officer

Mobile: +47 99 29 14 60

E-mail: lars.ove.johansen@hafslund.no

 

 

Hafslund ASA

Oslo, 16 July 2009