Hafslund Q4 2012: Strong demand for energy in fourth quarter

Highlights:

-          A satisfactory result in fourth quarter. EBITDA: NOK 642 million in Q4 2012 (Q4 2011: NOK 373 million exclusive REC).
-          Hydropower sales price: NOK 0.27 per kWh, up NOK 0.02 per kWh from 4Q 2011.
-          Hydropower generation: 25 per cent above normal for the quarter.
-          Strong demand for energy due to low temperatures late in the quarter.
-          Network distribution business: stable operations; profit influenced by high energy deliveries.
-          Negative cash flow from operations: minus NOK 659 million due to NOK 1 109 million increase in working capital.
-          The Board of directors proposes a NOK 2.50 per-share dividend for the 2012 accounting year.

The Hafslund Group achieved an EBITDA of NOK 642 million (NOK 207 million) in the fourth quarter of 2012. The Production and Heat businesses reported a combined EBITDA of NOK 307 million in the quarter, up NOK 108 million compared with the fourth quarter of 2011. Profit growth is largely attributable to the quarter’s 1 559 GWh energy production, which is 236 GWh higher than the comparable fourth-quarter 2011 figure. The Hydropower business sold its production at NOK 0.27 per kWh, up NOK 0.02 per kWh from the fourth quarter of 2011. The Group’s Network distribution business had stable operations in the quarter. Network’s EBITDA of NOK 305 million (NOK 211 million) is above normal for the reporting period and must be viewed in light of high energy deliveries late in the quarter due to cold weather. Hafslund’s Markets business segment achieved an EBITDA of NOK 52 million (NOK 41 million), which was below expectations for a quarter featuring high energy consumption. Under-performance is attributable to Power Sales’ weak margins in certain periods of the quarter as a consequence of increased wholesale power prices and start-up of new business activities in Sweden. In drawing year-on-year comparisons, the Hafslund Group’s fourth-quarter 2011 EBITDA was impacted by a NOK 164 million value decline associated with the Group’s former shareholding in Renewable Energy Corporation (REC).

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

Hafslund ASA
Oslo, 7 February 2013

For further information, please contact:

CFO Heidi Ulmo: Tel.: +47 909 19 325;
E-mail: heidi.ulmo@hafslund.no

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