(Comparable pro forma results for 2002 in brackets.)

Operating profit before depreciation (EBITDA) was NOK 637 million (NOK 468 million), an improvement of NOK 169 million from the first quarter of 2002. The operating profit of NOK 420 million (NOK 257 million) shows a positive profit development of NOK 163 million compared with the corresponding quarter last year. Network activities show a positive performance resulting from continued efforts to make operational processes more efficient along with an increase in anticipated income. Production was 33 per cent lower in power generation compared with the same period last year. However, higher attained sales prices for power along with a good contribution from power trading nonetheless produce a positive profit trend in total compared with the same quarter last year. The combination of lower sold volumes and pressure on the net margins resulting from a volatile power price market this quarter have led to a decline in profit for Retail Sales compared with the same period in 2002. Growth in Hafslund Security continues, and the number of new domestic alarm customers has increased by 29 per cent this quarter. The profit centre is now capable of continuing further expansion. Support functions such as Hafslund Services and corporate staff units show a total profit improvement of NOK 39 million compared with last year. Moreover, restructuring costs of NOK 13 million connected to the reductions in the workforce in Hafslund Contracting of a total of 32 employees have been charged to the quarterly accounts.

 

Earnings from share investments and associated companies were NOK 33 million (NOK 96 million). The change is mainly because the current assets investment portfolio has now been reduced in size. Profit before financing expenses was NOK 453 million (NOK 353 million).

 

Profit before tax this quarter was NOK 231 million (NOK 145 million). Profit after tax was NOK 180 million (NOK 68 million), an improvement of NOK 112 million. This corresponds to earnings per share of NOK 0.88 (NOK 0.33). Diluted earnings per share correspond to earnings per share.

 

The full 1st Quarter Report can be downloaded from the following link:

 

The Shareholders Report can be downloaded from the following link: