RESULTS FOR THE HAFSLUND GROUP (HNA) - FIRST QUARTER 2002
The group's operating profit excluding depreciation (EBITDA) in the first quarter was NOK 468 million (NOK 390 million). After depreciation, the operating profit was NOK 257 million (NOK 168 million). The improvement in the result is mainly due to better margins on sales of power to the end-user market and the increased trading contribution from power trading activities. Own generation of power in Norway was high in the first quarter (compared with the normal level), and the sales prices were satisfactory. The underlying earnings from the business areas Infrastructure and Contracting were in line with the first quarter of last year. Strong organic growth along with the establishment of new sales offices in the security market contribute to a negative result for Hafslund Security in the first quarter.
Cash flow from operations, including share investments but before net interest costs, was NOK 564 million (NOK 451 million). Income from the total share investments was satisfactory. Returns from the financial marketable securities portfolio were 8.6 per cent in the first quarter, which is better than the OSEBX index.
Income before taxes in the first quarter was NOK 145 million (NOK 12 million), while income after taxes was NOK 68 million (NOK -106 million). This corresponds to earnings per share of NOK 0.33 (NOK -0.56).
Hafslund Power Generation
EBITDA for Hafslund Power Generation in the first quarter was NOK 80 million (NOK 90 million), while the operating profit in the first quarter was NOK 66 million (NOK 77 million). Total investments in this quarter were NOK 7 million, in line with the same period last year. The underlying operations in the power stations in Glomma have been good, and they reflect a high own generation (compared with the normal level) and good sales prices. The business in the USA continues to be affected by a historic low hydroelectric power generation.
EBITDA for the Norwegian power generation activities in the first quarter was NOK 77 million (NOK 76 million). Operating profit was NOK 67 million (NOK 67 million). The attained sales price in the first quarter was 17.4 øre/kWh (16.4 øre/kWh). The average spot price was 16.4 øre/kWh in this quarter (20.1 øre/kWh). Power generation in the first quarter was 586 GWh (629 GWh) and was 12 per cent over the normal level. Controllable operation and maintenance costs have been reduced by NOK 3 million (27 per cent) compared to the corresponding level last year.
EBITDA for the power generation business in the USA in the first quarter was NOK 3 million (NOK 14 million). The operating result was NOK -1 million (NOK 10 million). This result is affected by a historic low own generation in the hydroelectric power stations, with own generation in the first quarter amounting only to 51 per cent of the normal level. As a result of low power prices and high fuel costs, the biomass plant in Greenville was only in operation in January
Hafslund Infrastructure and Contracting
EBITDA for Hafslund Infrastructure and Contracting in the first quarter was NOK 397 million (NOK 413 million). Operating profit in this period was NOK 228 million (NOK 235 million), and total investments were NOK 53 million (NOK 88 million).
The underlying operations have been stable, and the fall in profit is due to non-recurring conditions in the first quarter of 2001. The operating profit includes the contracting activities. During the second quarter of 2002, these will become a separate company, Hafslund Contracting AS, and from the same date the company will be part of Hafslund Contracting and Security.
NOK 27 million have been incorporated into the profit from the group's minority investments, including from Viken Fjernvarme (33%) and Mjøskraft (49%).
Hafslund End-User Sales
EBITDA for Hafslund End-User Sales in the first quarter was NOK 43 million (NOK -30 million). The operating profit in the first quarter was NOK 24 million (NOK -54 million).
The improvement is mainly due to the fact that satisfactory margins have been achieved on the sale of power to the end-user market. As a result of a milder winter, the sale of power to the end-user market was reduced by 14.5 per cent compared with the corresponding period last year. Sales of power to the end-user market in the first quarter were 5,018 GWh (5,867 GWh). At the end of the quarter the business area has approximately 634,000 customers in the mass market. This is an increase of 12,000 from the turn of the year. The figure does not include customers in companies where Hafslund has less than 50 per cent of the capital.
In addition, NOK -1 million has been included in the result from the minority investments.
Hafslund Security
EBITDA for Hafslund Security in the first quarter was NOK -7 million, and the operating result was NOK -12 million. Total investments in this period are NOK 20 million. The first quarter has been affected by strong organic expansion and the establishment of new sales offices. The number of home alarm system customers increased by 39 per cent during the first quarter.
During the first six months of 2002 the security business will be part of the new business area Hafslund Contracting and Security.
Hafslund Investments
EBITDA for Hafslund Investments in the first quarter (including income from the share investments) was NOK 84 million (NOK 8 million). The operating result in this period was NOK 8 million (NOK -42 million). The improved operating result compared with the same period last year is due to higher trading revenues from power trading activities.
Income from share investments in the first quarter was NOK 69 million (NOK 41 million), and from the financial marketable securities portfolio NOK 43 million with returns for the quarter totalling 8.6 per cent. This is 1.5 per cent points better than the OSEBX index. Returns of NOK 28 million from the sale of the ownerhip interest in Pelican in February have been included from long-term investments. Net shares for approximately NOK 110 million have been realised during the first quarter.
Other business areas
Other business areas include corporate staff, shared functions and business development.The operating result for the first quarter was NOK -57 million (NOK -48 million).
Transactions so far in 2002
· Tindra - now a wholly-owned company
Hafslund has purchased the remaining 34.4 per cent of the shares in the power trading company Tindra AS from Energiselskapet Buskerud AS for NOK 298 million. After this transaction, Hafslund now owns 100 per cent of the company. The purchase comes into effect from 1 April 2002, and the agreement enables a coordination of power sales and power trading activities in the Hafslund group.
· The merger was made in compliance with company law
The merger between Hafslund ASA and Viken was carried out according to company law and took effect from 22 March 2002.
Balance sheet as of 31 March 2002
At the end of the first quarter Hafslund has a total capital of approximately NOK 21.8 billion and an equity ratio of 26.7 per cent.
Net interest-bearing debt as of 31 March 2002 was NOK 10.9 billion, a reduction of NOK 0.5 billion from the turn of the year.
Hafslund ASA's share capital is NOK 195,223,448 divided into 115,464,944 class A shares and 79,758,504 B shares of NOK 1. The price on the Oslo Stock Exchange as of 27 March 2002 was NOK 38.10 for A shares and NOK 31.5 for B shares. The price as of 31 December 2001 was NOK 33.50 for A shares and NOK 30.50 for B shares.
At the end of the first quarter the group has 4,466,787 of its own B shares, the total cost price for these being NOK 122.0 million.
The group shareholders report for the fourth quarter is available from the company's head office at Sommerogaten 1 (Solli Plass), at the Oslo Stock Exchange, or on the Internet address: http://www.hafslund.no.
For the full report including financial tables follow this link: