second-quarter 2009 report · 2013-12-05 · norway’s ministry of petroleum and energy. • total...

s.1

Second-quarter 2009 report

Christian Berg, President and CEO

Hafslund ASA

16 July 2009

s.2

Highlights — second quarter 2009

• Satisfactory underlying operations.

• Operating profit: NOK 315 million (2Q 2008: NOK -142 million). 2Q 2008 figure includes a

NOK 396 million charge due to Venture portfolio value decline.

• Power generation: 902 GWh, 3 percent below 2Q 2008 and on a par with normal production for the

reporting period.

• Financial expenses reduced by NOK 119 million (NOK 128 million) due to loan value changes.

• After-tax profit: NOK 160 million (NOK -235 million; EPS: NOK 0.82 (NOK -1.20).

• Solid cash flow from operations: NOK 731 million (NOK 674 million).

• Hafslund subscribes to 24.3 million shares in Renewable Energy Corporation preemptive rights

issue.

s.3

Operating profitSecond quarter 2009NOK milion

31519243

0

100

200

300

400

Total operating

profit

Other activitiesVenturePower SalesNetworkDistrict Heating

8

Power

Generation

189

112

s.4

Operating profit — comparison with 2Q 2008 (excl. REC)

315

23914

562

141

341

180

Q2 09Other activitiesVenturePower SalesNetworkDistrict HeatingPower

Generation

Q2 08

• Profit improvement at all operating units.

• NOK 308 million value growth on Venture portfolio’s Fesil investment recorded in 2Q 2008 affects operating profit comparison with 2Q 2009.

• NOK 118 million power trading profit in 2Q 2008, due to correct positioning in relation to significantly higher forward power contract prices also affects profit comparison.

s.5

Earnings per share

Accumulated per- share profit for the period

By quarterIn NOK

* Excluding profit effect of the Group’s REC investment

2007 2008 2009

0,821,07

(1,56)

0,59

2,40

1,75

2,97

0,23

1,09

1,55

5,84* 3,18* 1,89*

s.6

Rates of return

Equity (ROE) Capital employed (ROCE)

* Excluding return on REC investment ** Rolling average, last 12 months

2009*

2%

2008**

7%

2007**

15%

2009*

5%

2008**

6%

2007**

8%

s.7

Steady power and CO2 prices in the 2. quarter

0

20

40

60

80

Jul-07 Jan-08 Jul-08 Jan-09 Jul-09

FWD 2011 CO2 2011

FWD 2014 Nordic spotmarket

EUR/MWh

EUR/tCO2

s.8

Power Generation

• Operating profit: up NOK 108 million compared with 2Q 2008, mainly due to NOK 0.125 per kWh higher power prices.

• Production: 902 GWh, down 3 percent from 2Q 2008 and on a par with normal generation for the period.

• Higher 2014 forward power prices result in a NOK 18 million (NOK -92 million) negative profit effect due to increased license power delivery obligations to municipalities.

• Hafslund maintains its strategy of exposure to spot market prices.

• Projected 3Q 2009 production: some 30 GWh below normal for period.

• Expansion and upgrade project on schedule.

NOK million 2Q 09 2Q 08 YTD 08 YTD 07

Operating revenue 265 157 418 365

Operating profit before

depreciation201 19 331 165

Operating profit 189 9 309 145

Investments 41 21 103 40

Production (GWh) 902 933 1 373 1 652

Sales price (øre/kWh) 29,9 17,4 30,9 22,7

9

120119 13592

55

297

271

189

29,933,6

20,2

11,2

33,4

29,6

17,4

38,743,1

2Q 07 4Q 07 2Q 08 4Q 08 2Q 09

Operating profit Sales price (øre/kWh)

s.9

New generator online in spring 2011

s.10

Hydropower waterway influx

• Spring melt started two weeks earlier than normal — abundant snow melted quickly in lower part of snowpack region.

• Highest spring flood flow rate: 1,685 m3/sec on 6 May 2009 (2008: 2,700 m3/sec).

• Water influx below normal throughout June due to scant precipitation and less-than-normal snow melting in mountains.

• Maximum capacity utilization: 940 m³.

0

500

1 000

1 500

2 000

2 500

3 000

Jan Feb Mar Apr Mai Jun Jul Aug Sep Okt Nov Des

m3/sek

Maks Min Normal 2009 2008

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Power generation profile

Note: Normal production = 10-year average of power generation, 1999-2008

3 248

1 373

3 104

0

50

100

150

200

250

300

350

GWh

2008 270 204 245 267 333 333 314 327 223 229 243 260

2009 175 150 146 260 347 295

Normal 209 167 168 233 339 328 330 263 240 281 291 255

Jan Feb Mar Apr Mai Jun Jul Aug Sep Okt Nov Des

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Licensed power obligations to municipalities

• Annual outtake of 62 GWh at a price of NOK 0.097 per kWh for licensed power obligations; price determined by Norway’s Ministry of Petroleum and Energy.

• Total license power obligations increased by NOK 18 million in the second quarter of 2009 to NOK 226 million, based on forward prices for delivery in 2014.

NOK

million

0,0

50,0

100,0

150,0

200,0

250,0

300,0

350,0

2Q

06

3Q

06

4Q

06

1Q

07

2Q

07

3Q

07

4Q

07

1Q

08

2Q

08

3Q

08

4Q

08

1Q

09

2Q

09

s.13

District Heating

• Operating revenues: up 31 percent compared with 2Q 2008 due to higher sales prices.

• Production: 188 GWh, of which 95 GWh supplied by Oslo municipal waste incineration plant.

• Seasonally a weak quarter, with about 16 percent of annual production.

• Production: up 6 percent.

• Production cost: up NOK 0.048 per kWh due to higher power prices.

• Operating profit: up NOK 14 million.

• 13.2 km trunk line unifying Oslo’s district heating networks completed on schedule in June 2009.

-22

-60

21

97

-22-40

111

-8

61

63,950,9

60,760,045,846,2

70 ,0 67 ,262,8

2Q 07 4Q 07 2Q 08 4Q 08 2Q 09

Operating profit Salesprice (in øre per kWh)





Operating profit -8 -22 103 75


Production (GWh) 188 178 770 628

Production cost (in øre per kWh) 24,3 19,5 28,1 23,8

Salesprice (in øre per kWh) 62,8 50,9 66,2 58,0

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District Heating – quarterly production mix

0

50

100

150

200

250

300

350

400

450

500

550

600

GWh

2Q 09

188

1Q 09

582

4Q 08

446

3Q 08

119

2Q 08

178

- Waste and bio

- Heat pumps

- Electricity

- Oil and natural gas

Energy source

s.15

Network

• Operating revenues: up 3 percent.

• 2009 income ceiling (exclusive of transmission costs of NOK 2,480 million): up NOK 491 million, compared with 2008.

• Income ceiling in 2Q 2009: NOK 129 million higher than in 2Q 2008.

• Maintenance activities on a par with 2Q 2008.

• NOK 39 million increase in operating profit reflects 2Q 2008 under income of NOK 52 million.

• Investments: NOK 103 million. Main activity: upgrading to 132 kV.

• Risk associated with inconsistent and unpredictable framework conditions.

Operating profit development


Operating revenue 772 750 1 678 1 593





154

70

11

8473 70

95 95

112

2Q 07 4Q 07 2Q 08 4Q 08 2Q 09

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Power Sales

• Operating revenues: up 35 percent.

• Operating revenue growth reflects higher wholesale prices compared with 2Q 2008.

• A satisfactory profit in a seasonally weak quarter due to lower power consumption.

• Approximately 16,000 more customers than in 2Q 2008.

• Sold volume: 2,602 GWh, down 2 percent despite customer-base growth. Volume contraction mainly due to lower volumes delivered to corporate customers.

• Operating profit after tax: about NOK 50 per customer.

Operating profit


Operating revenues 938 694 2 747 2 207




Sold volume (GWh) 2 602 2 654 6 971 6 767

66

3745

117

41

-50

108

128

43

2Q 07 4Q 07 2Q 08 4Q 08 2Q 09

s.17

Venture

• Operating revenues: down 13 percent. Decrease reflects completion of installation project for 270,000 remotely read power meters in Gothenburg.

• Minor portfolio value changes. 2Q 2008 recorded NOK 308 million value growth associated with Fesil investment.

• Hafslund subscribes to 24.3 million REC shares. NOK 643 million settlement payable in July.

• Following the share issue, Hafslund will own 94.7 million REC shares. Market value of REC investment including subscription rights: NOK 4.1 billion as of 30 June 2009.

• Capital employed: NOK 5.8 billion as of close of second quarter.

Venture portfolio (excl. REC)

12%

46% Renewable energy

18%

Telecom

Automatic meterreading

24%

Miscellaneous



Operating profit (excl REC) (2) 338 (0) 505

- REC 0 (704) 0 (10 139)

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Other Activities

• Energy recovery facility at Fredrikstadproduced 11 GWh (2Q 2008: 2 GWh).

• New Borregaard energy recovery facility ready for pilot operation at year-end 2009.

• Wood-pellet manufacturing plant scheduled for pilot operation in 2Q 2010.

• Value growth on derivatives: NOK -8 million.

• Successful CC9 climate conference.


Support (42) (49) (84) (82)

Power trading 18 118 (6) 105

Other renewable energy (7) (13) (11) (20)

Real estate 4 4 7 6

Billing and customer

service30 20 49 42

Financial derivatives, ass. comp.

(11) 43 75 52

Other (10) 0 (20) 0

Operating profit other (19) 122 9 103

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Group cash flow statement


Pretax profit 301 (175) 632 (9 163)

Depreciation 219 205 425 408

Profit and loss items without liquidity effects (305) 72 (532) 9 140

Cash flow from operations 216 102 525 385

Change in working capital, etc. 515 572 1 453 1 417

Total cash flow from operations 731 674 1 978 1 802

Cash flow per share from operations 3,7 3,5 10,1 9,2

Net operations and expansion investments (404) (551) (769) (748)

Portfolio changes Venture, etc. (2) (35) (16) (219)

Cash flow before financing activities and dividends 325 88 1 193 835

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Group profit and loss account


Operating revenue 2 305 1 924 5 803 4 948

Gain/loss financial items 23 (333) 115 (9 615)

Operating expenses (1 794) (1 528) (4 695) (3 921)

Operating profit before depreciation 535 63 1 224 (8 589)

Depreciation (219) (205) (425) (408)

Operating profit 315 (142) 799 (8 996)

Financial expenses (14) (33) (167) (167)

Pre-tax profit 301 (175) 632 (9 163)

Tax (142) (80) (263) (190)

Results discontinued operations 0 21 0 25

Profit after tax 160 (235) 369 (9 328)

Majority's share of profit 163 (239) 373 (9 327)

Earnings per share (EPS) in NOK 0,82 (1,20) 1,89 (47,79)

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Group balance sheet

NOK million 30.06.2009 31.03.2009 31.12.2008 30.06.2008

Intangible assets 2 318 2 330 2 308 2 598

Fixed assets 18 432 18 248 18 102 17 750

Financial assets 5 446 5 514 6 452 10 620

Accounts receivables and inventory 1 944 3 082 3 077 1 898

Cash and cash equivalents 942 989 681 586

Assets 29 083 30 163 30 620 33 451

Equity (incl. Min. int.) 11 715 12 042 12 426 17 987

Allocation for liabilities 3 232 3 141 3 072 2 893

Long-therm debt 8 807 8 562 7 653 7 455

Other currently liabilities 3 119 3 384 4 871 3 268

Short-term debt 2 210 3 035 2 599 1 848

Equity and liabilities 29 083 30 163 30 620 33 451

Net interest-bearing debt 10 661 10 548 11 442 9 869

Equity ratio 40 % 40 % 41 % 54 %

www.hafslund.nowww.hafslund.no

We make everyday life safer and better

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Additional information

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Capital structure development

Interest-bearing debt and equity ratioNOK billion

9,710,1

9,49,9

11,210,7

6,2 10,6

10,3

40,0

55,5

61,7

63,1

64,3

54,4

53,8

50,7 40,3

2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

Net interest-bearing debt Equity ratio

s.25

Loans

Debt maturity profile 2009-2019NOK million

Portfolio details

Loans at maturity, next 12 months.

NOK million

Portfolio details 30.06.09 31.03.09 Change

Bonds 51 % 56 % -6 %

Certificate loans 20 % 17 % 3 %

Other loans 29 % 27 % 2 %

Portfolio details 30.06.09 31.03.09 Change

Nominal value - market value of loans

70 (49) 119

Market value interest rate

swaps(112) (104) (8)

Average interest incl. derivatives

4,7 % 5,1 % -0,4 %

Proportion of loan portfolio

with fixed interest43 % 42 % 1 %

Loans at maturity next quarter

(NOK million)806 703 103

Unused drawing facilities (NOK

million)4 909 4 845 64

-

500

1 000

1 500

2 000

2009 2011 2013 2015 2017 2019

Certificate loans Bonds Other loans

,

-

200

400

600

800

1 000

1 200

Jul Aug Sep Okt Nov Des Jan Feb Mar Apr Mai

Certificate loans Bond loans Bank loans

s.26

Hafslund Power Sales in 2Q 2009: 2,602 GWh =

13% of total Norwegian consumption.

Hafslund power salesGWh

Norway’s gross general consumption of electricity*GWh

Note: * Gross general consumption encompasses gross consumption (excl. electro-boilers and pumped storage), which includes

households and agriculture, services, wood processing, mining and other industries (excl. power-intensive), construction,

transportation, and grid losses.

Source: NVE

0

1 000

2 000

3 000

4 000

5 000

1Q 2Q 3Q 4Q2007 2008 2009

-

5 000

10 000

15 000

20 000

25 000

30 000

35 000

1Q 2Q 3Q 4Q

2007 2008 2009

s.27

Shareholders (as of 30 June 2009)

Note: Shareholders in thousand shares

# ShareholderClass A

shares held

Class B

shares heldTotal Ownership

Share of

voting rights

Shareholding in thousands

1 City of Oslo 67 525 37 343 104 868 53,7 % 58,5 %

2 Fortum Forvaltning AS 37 853 28 706 66 559 34,1 % 32,8 %

3 Østfold Energi AS 5 201 4 5 205 2,7 % 4,5 %

4 Verdipapirfond Odin Norden 2 221 2 221 1,1 % 0,0 %

5 MP Pensjon - 1 564 1 564 0,8 % 0,0 %

6 Verdipapirfond Oden Norge - 1 041 1 041 0,5 % 0,0 %

7 Hafslund ASA - 491 491 0,3 % 0,0 %

8 AS Herdebred 107 271 378 0,2 % 0,1 %

9 JP Morgan Chase Bank 318 318 0,2 % 0,0 %

10 VP Danske Invest AK - 277 277 0,1 % 0,0 %

Total, 10 largest shareholders 110 686 72 236 182 922 93,7 % 95,9 %

Other shareholders 4 742 7 522 12 264 6,3 % 4,1 %

Total 115 428 79 758 195 186 100 % 100 %

s.28

Key figures

Group 2Q 2009 2Q 2008

Capital mattersTotal assets 29 083 33 451Captial employed 25 324 30 213Equity 11 715 17 987Market capitalization 14 350 21 382Equity ratio 40 % 54 %

Net interest-bearing debt 10 661 9 869

Profitability excl. RECProfit after tax 369 (9 328)Equityreturn (last 12 month) 2 % 17 %Earnings per share (EPS) 0,82 (1,20)Cash flow per share 3,7 3,5

Power Generation 2Q 2009 2Q 2008

Capital employed 4 020 3 836Sales price (øre/kWh) 29,9 17,4Production volume (GWh) 902 933Production as a % of normal 101 % 123 %

District heating 2Q 2009 2Q 2008

Capital employed 3 946 3 580Sales price (øre/kWh) 62,8 50,9Sales volume (GWh) 188 178

Network 2Q 2009 2Q 2008

Capital employed 8 972 9 013Annual Income ceiling 2 480 1 989NVE-capital (regulatory) 6 372 6 143

Power Sales 2Q 2009 2Q 2008

Capital employed 1 410 1 163Total volume (GWh) 2 602 2 654

Venture 2Q 2009 2Q 2008

Market value REC 1 705 1 794Capital employed 4 071 9 293

s.29

Definitions

Items Definition

Group

Captial employed Equity + Net interest-bearing debt + Net tax positions

Equity ratio (in%) (Equity incl. Minority interests / Total assets) X 100

Earnings per share Profit after tax / Average no. of shares outstanding

Cash flow per share Net cash from operations / Average no. of shares

Return on equity Result after tax / Average equity (incl. Minority interests)

Return on capital employed Operating profit / (Average equity + Net interest-bearing debt + Net tax positions)

Power generation

Mean production Average power generation over the past 10 years.

s.30

Investor information

• Additional information is available from Hafslund’s website:

– www.hafslund.no

– You can subscribe to Hafslund press releases

• Group SVP Treasury and CFO, Gunnar Gjørtz

– [email protected]

– Tel: +47 922 17 200

• SVP Communications, Karen Onsager


– Tel: +47 920 87 007

• Financial Director, Morten J. Hansen


– Tel: +47 908 28 577

www.hafslund.no

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second-quarter 2009 report · 2013-12-05 · norway’s ministry of petroleum and energy. • total...

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