Hafslund ASA 10 July 2014 Finn Bjørn Ruyter, CEO

Transcription

1 Hafslund ASA 1 July 214 Finn Bjørn Ruyter, CEO

2 Second-quarter highlights 214 EBITDA of NOK 624 million up 1 percent on the previous year due to improvements in results within network and power sales. Customer growth and improved margins boosted power sales profits by 82 percent against the previous year. Hydropower production of 97 GWh 18 percent above the previous year and slightly above normal. Achieved power price of NOK.2 per kwh down 29 percent on the previous year. Takeover of Fortum s Networks business in Norway completed, and integration measures to coordinate and optimally organise the overall Networks business started. Equity ratio maintained at 31 percent despite the acquisition of Fortum s Networks business and the payment of NOK 488 million in dividends in the quarter. s.2

3 EBITDA second-quarter 214 and change from 213 EBITDA Q2 214 Change in EBITDA from Q2 213 NOK mill Production Heat Network Markets Other EBITDA EBITDA Production Q2 13 Heat Network Markets Other EBITDA Q2 14 s.3

4 Interest-bearing debt increased by NOK 1.8 billion in the quarter Change net interest-bearing debt in the quarter NOK million Net debt EBITDA 115 Interest paid 124 Net ibd (billion) Equity ratio % Tax paid Change in Net Paid Net debt working investments dividends capital Development net interest-bearing debt and equity ratio Purchase of Fortum's Networks business in Norway contributes to total investment of NOK 1.6 billion in the quarter. Dividend payments on NOK 488 million NOK 2.5 per share. Net interest-bearing debt of NOK 1.5 billion at 3 June. Equity ratio at 31 per cent despite the acquisition of Fortum's Network business and payment of dividends , 29% 9,8 31% 9,9 3% 8,7 31% 1,5 31% s.4 Q2 213 Q3 213 Q4 213 Q1 214 Q2 214

5 Production NOK million Q2 14 Q2 13 YTD 14 YTD 13 Operating revenue Gross margin EBITDA Operating profit Power price (NOK/kWh) Production volume (GWh) Investments EBITDA per quarter EBITDA rolling 12 months Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Operating profit reflects low power prices, despite increased production against last year. Limited transmission capacity gave significantly lower NO1 price than system price. Hedging partly compensates for low power prices. Production slightly above normal levels, and 18 percent higher than last year. Expected production 4 percent under normal levels for the third quarter. 4 percent hedging ratio next six months. s.5 EBITDA EBITDA rolling 12 months

6 Oslo price significantly lower than system price in second quarter NOK/kWh,3,28,26 Large price difference between system price and the price at Hafslund s area due to temporary limited transmission capacity,24,22,2 Average in the quarter.21 NOK/kWh,18,16,14 Average in the quarter.17nok/kwh,12,1 Jan Feb Mar Apr May Jun Oslo price (NO1) System price s.6 Source for price data: 3 June 214.

7 Hydropower Glomma waterway flow 3 m3/sec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Normal * Max.capacity utilization s.7 * Normal = Median flow last 1 years.

8 Production and power prices GWh NOK/kWh Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec. Normal* 214 System price s.8 Source for price data: and as of 3 June 214. *Normal = 31 GWh based on 1-year average production adjusted for efficiency improvements.

9 Heat NOK million Q2 14 Q2 13 YTD 14 YTD 13 Operating revenue Gross margin EBITDA Operating profit (35) (5) Production volume (GWh) Gross margin (NOK/kWh) Investments A seasonally weak quarter with 17 percent of normal annual production. Warm weather and low power prices gave decline in profit against last year. 8 percent lower production due to reduced energy demand. New customer tie-ins with a yearly outtake of 12 GWh connected the first six months. EBITDA per quarter EBITDA rolling 12 months percent hedging ratio next six months. Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 EBITDA EBITDA rolling 12 months s.9

10 Production in GWh District heating production costs and gross margin GWh GWh Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Bio-oil, oil, and natural gas Pellets Waste and biomass Electricity Heat pumps Warm weather led to 8 percent lower production than normal levels, and 12 percent lower than last year. A quarter with high share of base load. District heating price down NOK.7 per kwh due to low power prices also reduced production cost. Production of 255 GWh is down 55 GWh despite organic growth. Energy prices (NOK/kWh) Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Waste Heat pumps Biooil Pellets Electricity Total fuel cost District heating incl. Distribution Reduced contribution margin due to grid losses Gross contribution margin Result from hedging NOK 5 million. Gross margin of NOK.29 per kwh is down NOK.4 per kwh. s.1

11 District heating production and power prices 3 GWh NOK/kWh Jan Feb Mar Apr 9 86 May Jun 4 41 Jul Aug 68 Sep 14 Oct Nov Dec.5. Normal * 214 System price s.11 Source for price data: and as of 3 June 214. * Normal = Expected production in 214 given normal temperature (1-year average) and existing and planned customer tie-ins.

12 Network NOK million Q2 14 Q2 13 YTD 14 YTD 13 Operating revenue Gross margin EBITDA Operating profit Investments EBITDA per quarter EBITDA rolling 12 months Fortum s Network business in Norway (Hafslund Nett Øst) acquired from 3 May. Good operational stability and low KILE cost in the quarter. Reduced grid losses combined with stable network tariffs contribute to an increased profit against 213. With the current network tariffs and normal energy demand in the second half of 214, a 2 percent increase in operating profit is expected. Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 EBITDA EBITDA rolling 12 months s.12

13 Markets NOK million Q2 14 Q2 13 YTD 14 YTD 13 Operating revenues Gross margin EBITDA Operating profit Sold volume (GWh) Customer growth and improved margins gave profit growth of 82 percent against last year. 8 percent higher sold volume due to 148. more customers warm weather in the quarter affects negatively. EBITDA per quarter 15 EBITDA rolling 12 months 5 New customer service and invoicing system gives lower system costs against last year Profit after tax from power sales of NOK 63 per customer (NOK 41) customers at the end of the first half of 214. Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 EBITDA EBITDA rolling 12 months s.13

14 Summary of second-quarter 214 profit Change in EBITDA Q2 213 to Q2 214 Profit after tax Q2 214 MNOK Earnings per share EBITDA Q2 13 Gross margin Gain/loss financial items Operating expenses EBITDA Q2 14 EBITDA Q2 14 Depreciation Financial expenses Tax Profit after tax Q2 214 s.14

15 Summary Operating profit before depreciation (EBITDA) for the quarter of NOK 624 million up 1 percent from last year due to improvements in results within network and power sales. Customer growth and improved margins boosted power sales profits. The quarter is as normal characterized by high hydropower production and low energy demand. Achieved power price of nok.2 per kwh down NOK.8 per kwh from last year. Fortum s network business acquired and integration work has started. At the end of the first half of 214, forward prices for power delivery in the third and fourth quarter was NOK.23 and.27 per kwh respectively (system price). Hafslund s position as a leading energy company will be continued through efficient and stable operations, further focus on renewable energy, the electricity market and infrastructure for energy. s.15

16 Appendix

17 Nordic spot and forward prices NOK/kWh NOK/kWh * Nordic power price - System s.17 * Period average is based on the average of forward price for SYS as of Source: and

18 Group profit and loss account NOK million Q2 14 Q2 13 YTD 14 YTD 13 Operating revenue (26) Cost of energy (1 263) (1 64) 377 (3 552) (4 46) Gross margin Gain/loss financial items (7) Operating expenses (7) (67) (93) (1 41) (1 197) EBITDA Depreciation and write-downs (216) (195) (21) (418) (393) Operating profit Interest expences (96) (115) 19 (189) (245) Market value change loan portfolio (17) 7 (24) (33) (21) Financial expenses (114) (18) (5) (223) (266) Pre-tax profit Tax (126) (115) (11) (14) (22) Profit after tax Earnings per share (EPS) in NOK s.18

19 Group balance sheet NOK million Q Intangible assets Fixed assets Financial assets Accounts receivables and inventory (645) Cash and cash equivalents (1 91) 1 67 Assets (96) Equity (incl. min. int.) (353) Allocation for liabilities Long-term debt (572) 8 63 Other current liabilities Short-term debt (731) 2 28 Equity and liabilities (96) Net interest-bearing debt Equity ratio 31 % 31 % % 29 % s.19

20 Cash flow NOK million Q2 14 Q2 13 YTD 14 EBITDA Paid interests (115) (17) (8) (288) Paid tax (124) (125) 1 (274) Marketvalue changes and other liquidity adjustments (28) 55 (83) (24) Change in working capital, etc. (26) 214 (42) 749 Total cash flow from operations (455) Net operations and expansion investments (1 191) (199) (992) (1 688) Net purchase/sale of shares etc. (347) 2 (349) 14 Cash flow from investments activities (1 538) (197) (1 341) (1 674) Cash flow to down payments and interests (1 387) 49 (1 796) (132) s.2

21 Earnings per share Per quarter NOK 2.85 ** * s.21 * Profit after tax Q3 212 impacted negatively by NOK 551 million related to extraordinary write-downs and provisions. ** Profit after tax Q1 214 impacted positively by NOK 288 million related to waived tax claims regarding Hatros.

22 Capital employed and return on capital employed Capital employed NOK 21.5 billion per Markets 9% Return on capital employed 8.% 9.1% Production 2% Network 46% 4.6% 24% 1% Heat Other 212 * 213 ** 214 *** s.22 * 212 includes write-downs and provisions regarding BioWood Norway and Bio-El Fredrikstad of NOK -548 million. ** 213 includes the sale of shares in Infratek with a profit of NOK 9 million. *** 214 return last 12 months including the sale of shares in Infratek with a profit of NOK 9 million in Q3 213.

23 Loans portfolio data Debt maturity profile NOK million Commercial paper Bonds Other loans Loans at maturity, next 12 months NOK million Portfolio data Q2 14 Q1 14 Bonds 7 % 67 % 4 % Commercial paper 8 % 11 % -3 % Other loans 22 % 22 % % NOK million Q2 14 Q1 14 Nominal value - market value of loans (315) (298) (17) Market value interest rate and fx derivatives (16) (8) (8) Average interest incl. derivatives (%) 3.9 % 3.9 %. % Proportion of loan portfolio with fixed interest (%) 47 % 48 % -1 % Loans at maturity next quarter (3) Unused drawdown facilities Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun s.23 Commercial paper Bonds Other loans

24 Key figures Group YTD 214 YTD 213 Capital matters Total assets Capital employed Equity Market capitalization Equity ratio 31 % 29 % Net interest-bearing debt Profitability EBITDA Earnings per share (EPS) Cash flow per share Heat YTD 214 YTD 213 Capital employed Sales price District heating (NOK/kWh) Sales price Industrial energy (NOK/kWh) Gross margin (NOK/kWh) Sales volume (GWh) Network YTD 214 YTD 213 Capital employed Regulated gross margin for the year Excess/(under) income ytd 12 (12) NVE-capital (regulatory) Power Generation YTD 214 YTD 213 Capital employed Sales price (NOK/kWh).22.3 Production volume (GWh) Markets YTD 214 YTD 213 Capital employed of this working capital Volume power sales (GWh) s.24

25 Shareholders as of # Shareholder Class A shares held Class B share held Total Ownership Share of voting rights 1 City of Oslo % 58.5 % 2 Fortum Forvaltning AS % 32.8 % 3 Østfold Energi AS % 4.5 % 4 Odin Norge %. % 5 MP Pensjon PK %. % 6 Folketrygdfondet %.1 % 7 Danske Invest %. % 8 Skandinaviska Enskilda Banken %. % 9 AS Herdebred %.1 % 1 New Alternatives Fund Inc %.3 % Total, 1 largest shareholders % 96.3 % Other shareholders % 3.7 % Total % 1 % s.25

26 Definitions Name Definition Group Capital employed Equity + Net Interest-bearing debt + Net tax positions Equity ratio (in %) (Equity incl. Minority interests / Total assets) X 1 Earnings per share Cash flow per share Return on equity last 12 months Return on capital employed last 12 months Hedge ratio Hydro power Hedge ratio District heating Profit after tax / Average no. of shares outstanding Net cash from operations / Average no. of shares Result after tax last 12 months / Average equity (incl. Minority interests) last 12 months Operating profit last 12 months / Average capital employed last 12 months Ratio of the estimated production portfolio hedged in the period (excluding fixed-price contracts) Ratio of the estimated net power price exposure hedged, by: Sales reduced with electricity use and 1/3 heat pumps s.26

27 Investor information Additional information is available from Hafslund s website: You can subscribe to Hafslund press releases Group CFO, Heidi Ulmo heidi.ulmo@hafslund.no Tel: Financial Director and Investor Relations contact, Morten J. Hansen mjh@hafslund.no Tel: s.27

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