RESULTS FOR THE HAFSLUND GROUP (HNA) - FOURTH QUARTER 2001
The group's result at the fourth quarter has been affected by high attained power prices for generation activities in Norway, write-downs associated with the chip-fired plant in the USA, good returns from the financial marketable securities portfolio, and write-downs of the venture portfolio and other long-term investments.
The Hafslund group's result after taxes at the fourth quarter was NOK 38 million (NOK 81 million), corresponding to earnings per share of NOK 0.34 (NOK 0.68). Operating profit at the fourth quarter amounted to NOK 62 million (NOK 160 million).
Operating profit for 2001 was NOK 231 million (NOK 435 million), income after taxes NOK 129 million (NOK 404 million), and earnings per share NOK 1.10 (NOK 3.39).
Comments to the result at the fourth quarter 2001
Operating profit for the Hafslund group in the fourth quarter amounted to NOK 62 million (NOK 160 million). The operating profit shows a positive result from the generation activities in Norway, and satisfactory margins from power sales operations. However, a negative profit contribution from power trading in the USA which includes a provision of USD 1.5 million for winding-up costs (shown under Business Area Investments) has caused a reduction in the income compared with the fourth quarter of 2000. Furthermore, depreciation and provisions of a total of NOK 18 million have been made in connection with the chip-fired power plant in Greenville, USA.
Income before taxes in the fourth quarter was NOK 18 million (NOK 120 million). Income after taxes in this period was NOK 38 million (NOK 81 million), corresponding to earnings per share of NOK 0.34 (NOK 0.68). This reflects returns of 18.2% from the financial marketable securities portfolio and the fact that write-downs have been made linked to long-term investments, including the Venture portfolio of NOK -118 million.
Balance sheet as of 31 December 2001
At the end of 2001, Hafslund has a total capital of approximately NOK 21.5 billion and a equity ratio of 26.2% (32.1%).
At the end of the year the group has a net interest-bearing debt of NOK 11.5 billion, of which NOK 5.1 billion is short-term debt. The substantial short-term debt is mainly due to withdrawals of capital, refinancing, and financing resulting from the merger with Viken Energinett and the purchase of Oslo Energi AS. In addition, Viken Energinett's purchase of Østnett in autumn 2001 was financed with short-term debt due to the merger negotiations with Hafslund.
The company is in the process of refinancing parts of it's loan portfolio.
Hafslund ASA's share capital is NOK 126,751,415 divided into 74,967,148 class A shares and 51,784,267 B shares of NOK 1. The price on the Oslo Stock Exchange as of 31 December 2001 was NOK 33.50 for A shares and NOK 30.50 for B shares. The price as of 31 December 2000 was NOK 44.00 for A shares and NOK 25.00 for B shares.
As owner of 67% of Viken Energinett AS, the City of Oslo will receive 40,497,796 A shares and 27,974,237 B shares in Hafslund when the merger between these two companies comes into effect on 16 March 2002.
At the end of 2001 the group has 4,466,787 of its own B shares at a total cost price of NOK 122 million.
Dividends 2001
A dividends of NOK 1.20 per share has been proposed to the general meeting (NOK 1.20).
Important transactions
- Merger between Hafslund and Viken Energinett
The merger with Viken Energinett AS was decided at the extraordinary general meeting on 20 December 2001. Hafslund ASA now owns the regional grids in Oslo, Akershus and Østfold and the distribution grid in Oslo and the largest part of Akershus. The creditor deadline expires on 16 March 2002.
- Agreement on the purchase of Oslo Energi AS
At the same general meeting it was decided to give the Board the authority to make a private placing directed towards Vattenfall AB, which was the 100% owner of Oslo Energi AS, a company with around 350,000 customers. The Board exercised its right on
31 December 2001.
In connection with the approved merger with Viken Energinett, the purchase of Oslo Energi AS, and the majority control in Tindra, a pro forma results for the years 2001 and 2000 has been compiled. Reference is made to the group shareholders' report for the fourth quarter of 2001 for further details of the pro forma result. The group shareholders report for the fourth quarter is available from the company's head office at Karenslyst Alle 11, at the Oslo Stock Exchange, or on the Internet address: http://www.hafslund.no.
For more information please contact Christian Berg, CFO, on tel. 23 01 42 00.
Oslo, 27 February 2002
HAFSLUND ASA
This press release with figures is available at the following link: