HNA/HNB - Hafslund Q1 2012: Satisfactory EBITDA despite low power prices

Highlights:

-  EBITDA: NOK 607 million, down seven percent from 1Q 2011.

-  Sound underlying operations; profit affected by low power prices and mild temperatures.

-  Hydropower generation: 10 percent above normal for the quarter.

-  Hydropower sales price: NOK 0.27 per kWh, down 43 percent from 1Q 2011.

-  Network: power distribution business reported stable operations and normal profit.

-  Power Sales: profit on a par with 1Q 2011; modest customer-base growth.

-  After-tax profit: NOK 214 million, including value changes and non-recurring items totalling NOK 72 million.

The Hafslund Group achieved an EBITDA of NOK 607 million (NOK 656 million) in the first quarter of 2012. The Group’s operating profit was affected by low power prices, increased Hydropower generation, and reduced Power Sales and District Heating demand due to relatively mild temperatures in the first quarter of 2012. The Network power distribution business enjoyed stable operations and normal profits based on the regulatory income ceiling currently in force. Hydropower generation was 601 GWh, up 62 percent compared with the first quarter of 2011; generation was ten percent above normal for the reporting period. The Hydropower business sold its power production at NOK 0.27 per kWh, a steep 43 percent decline compared with the first quarter of 2011. Power Sales’ first-quarter 2012 profit is on a par with the year-earlier figure despite a drop in demand as a result of mild weather.

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

Hafslund ASA,
Oslo, 3 May 2012

For further information, please contact:

CEO, 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