Hafslund Q3 2011: High hydropower production, but lower prices

Highlights:

- Strong cash flow of NOK 0.9 billion in the quarter.

- Marked improvement in water levels in Østlandet.

- High hydropower production in the quarter, 22 per cent higher than in a normal year.

-  Power price of 250 NOK/MWh for power production business, down 31 per cent on the previous year.

-  The investment in REC negatively impacted the operating result by NOK 360 million.

-  Sale of the shares in Cogen and Network Norway will release capital of NOK 534million.

Hafslund posted EBITDA, excluding the effect on profit of REC, of NOK 499 million. The result from operations shows normal seasonal variations within the individual results units, and is reflected in high hydropower production and weak performance from the district heating and power sales businesses. The Group's total energy production amounted to 1,282 GWh, which represents an increase of 9 per cent on the previous year. The result reflects a significant fall in power prices compared with the previous year, in particular in the latter part of the quarter.

Read the flip-book report at www.hafslund.no/english/report (http://www.hafslund.no/english/report)

Hafslund ASA,
Oslo, 28 October 2011

For further information, please contact:

Senior Vice President Finance, Finn Bjørn Ruyter: Tel.: +47 911 38 199;
E-mail: finn.bjorn.ruyter@hafslund.no  

Finance Director Morten J.Hansen: Tel.: +47 908 28 577;
E-mail: morten.j.hansen@hafslund.no  

Senior Vice President Communications, Karen Onsager: Tel.: +47 920 87 007;
E-mail: karen.onsager@hafslund.no