Hafslund made an operating profit of NOK 221 million in the third quarter 2009, and generated a cash flow from operating activities of NOK 480 million. Sales revenues in the third quarter totalled NOK 1,834 million, NOK 461 million less than in the same quarter last year. This can be ascribed largely to lower electricity prices compared with last year. While this had a particular impact on electricity sales revenues, it also affected the performance of the power generation, district heating and other renewable energy business units.

Output in the third quarter was high. At 962 GWh, it was 11 per cent higher than in the third quarter 2008. However, electricity prices in the third quarter were 35 per cent lower than last year. As a result power generation posted an operating profit of NOK 196 million in the third quarter, NOK 101 million down on the same quarter in 2008. The Group's cash flow remains solid at NOK 480 million, compared with NOK -306 million in the same quarter last year.

 

Hafslund's electricity sales companies made a combined operating profit of NOK 20 million, an improvement of NOK 70 million compared with last year. Sales revenues totalled NOK 662 million, 30 per cent less than last year. "The result must be seen in light of what is normally a seasonally weak quarter due to low consumption. However, sales of products other than traditional electricity products had a positive impact on profits. The number of customers purchasing electricity also grew, which we are very pleased with in an increasingly tough competitive situation," said President and CEO Christian Berg.

 

Hafslund Venture made an operating loss (excluding REC) of NOK 108 million in the third quarter 2009. This reflects a NOK 86 million reduction in the fair value of the venture portfolio. The continued turbulence in the financial market, which was characterised by a high degree of uncertainty and volatility, makes the market value of the portfolio, comprising unlisted companies (excluding REC), uncertain.

Hafslund's district heating results were affected by a seasonal low in heating consumption and district heating prices. The district heating business made an operating loss of NOK 43 million, NOK 3 million lower than in the third quarter 2008. Sales revenues totalled NOK 48 million, down NOK 17 million on the year before. The price of district heating tracks the price of electricity and the reduction is largely due to lower electricity prices. With around 10 per cent of annual output in the third quarter this will seasonally be the weakest quarter of the year. "The district heating business will provide our customers with cheaper and more environmentally friendly heating. Our experience so far is that district heating becomes a popular alternative in those areas in which it is available," said President and CEO Christian Berg.

A growing number of people want to share in this environment-friendly form of heating. High-profile buildings and major consumers, such as the outdoor sports arena Frognerbadet/Frogner Stadion and the Colosseum cinema complex, have recently become district heating customers, and the objective is to increase deliveries of district heating corresponding to the heating needs of a third of Oslo's population over a seven-year period.

 

 

 

For more information, please contact:

 

Morten J. Hansen, Finance Director

Mobile: +47 90 82 85 77

E-mail: mjh@hafslund.no

 

Gunnar Gjørtz, CFO

Mobile: +47 92 21 72 00

E-mail: gunnar.gjortz@hafslund.no

 

Karen Onsager, SVP Communications and CR

Mobile: +47 92 08 70 07

E-mail: karen.onsager@hafslund.no

 

 

Hafslund ASA

Oslo, 28 October 2009