Hafslund posted an operating profit of NOK 483 million and generated a cash flow from operations of NOK 1,238 million in the first quarter of the year.

 

"We are very satisfied with underlying operations in all parts of the Group in the first quarter. The result was boosted by high electricity sales, satisfactory power prices and high district heating production, remarked Berg.

 

However, Hafslund's power production was 35 per cent lower than in the corresponding prior-year period, and 13 per cent lower than normal for the quarter. This is primarily attributable to lower-than-normal precipitation and inflow levels.

 

"Hafslund shall help meet future demand for renewable energy, where the EU's 20-20-20 climate target will serve as a guide. We are currently implementing a number of major projects within hydropower, heat production, distribution and other renewable energy," stresses Berg.

 

A new power plant which will generate sufficient new power production to cover the needs of 5,000 households will be completed at Kykkelsrud in Askim in 2011. In Sarpsborg, Hafslund is constructing a waste-to-energy facility that will replace 20,000 tonnes of heavy oil usage and cut Norwegian chemicals company Borregaard's greenhouse gas emissions by more than 50,000 tonnes. Hafslund is also constructing a pellets factory that will be the largest of its kind in Europe, with a production capacity of 450,000 tonnes of wood pellets at Averøy. The pellets will be used for industrial purposes and in coal-fired power plants.

 

Operating revenues rose by NOK 598 million compared with the first quarter of 2008. The increase is primarily attributable to increased sales of electricity and district heating.

 

The operating profit in the first quarter totalled NOK 483 million, compared with NOK 581 million in the corresponding prior-year period. The result includes non-recurring effects relating to the dilution of the shareholding in Infratek ASA, and changes in value of foreign currency and interest rate derivatives totalling NOK 75 million. The operating result in the first quarter of 2008 was boosted by a profit of NOK 188 million from the sale of One Call AS.

 

The profit after tax for the first quarter was NOK 210 million. This corresponds to an EPS figure of NOK 1.07.

 

The Hafslund Group has a strong balance sheet with an equity ratio of 40 per cent, and a robust financing structure with long-term committed drawdown facilities.

 

The cash flow from operations was NOK 1,238 million, an increase of NOK 110 million compared with the corresponding prior-year period. At the end of the quarter the Group's net interest-bearing debt amounted to NOK 10.5 billion, which represents a reduction of NOK 0.9 billion during the quarter.

 

For further information:

 

Group Executive Vice President Finance (CFO), Gunnar Gjørtz

Mob: +47 92 21 72 00

E-mail: gunnar.gjortz@hafslund.no

 

Group Executive Vice President , Communications and Corporate Responsibility (CR), Karen Onsager

Mob: +47 92 08 70 07

E-mail: karen.onsager@hafslund.no

 

Investor Relations Officer (IRO) Lars Ove Johansen

Mob: +47 99 29 14 60

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

 

Hafslund ASA

Oslo, 6th May 2009