Second-quarter 2011 Analytikerpresentasjon presentation to analysts 2. kvartal 2010

Transcription

1 Second-quarter 211 Analytikerpresentasjon presentation to analysts 2. kvartal 21 Hafslund ASA Hafslund 8 July 211 ASA Christian 15. juli Berg, 21CEO Christian Berg, CEO

2 Highlights second-quarter 211 High cash flow and Q2 211 EBITDA of NOK 78 million (exclusive of REC profit effect). Hydropower sales price: NOK.39 per kwh, up 11 percent from Q2 21. Hydropower production: returns to normal for the quarter. Hydropower reservoir content in south-central Norway improves dramatically: now at normal levels for the season. Network business: stable profit continues. Effect of REC investment s share price development on operating profit: minus NOK 564 million (Q2 21: minus NOK 747 million). New NOK 3.6 billion revolving credit facility strengthens liquidity reserve. s.2

3 EBITDA second quarter 211 MNOK Hydropower District Heating Network Power Sales Venture REC Other Activities EBITDA s.3

4 Stable cash flow from operations EBITDA development 12-month rolling EBITDA vs. wholesale power prices MNOK Q NOK/kWh Q2 9 Q3 9.3 Q4 9 Q % Q3 1.4 Q4 1.4 Q Q Cash flow from operations up 34 percent over the past two years: Renewable energy, infrastructure and Power Sales (NOK 412 million) Expansion costs and Bioenergy (NOK -88 million) Other business activities and support (NOK 172 million) One time effects (NOK 16 million) EBITDA sensitivity: a NOK.1 per kwh change in wholesale power prices results in an approximately NOK 34 million change in EBITDA EBITDA* Power prices rolling 12-month average** s.4 * EBITDA = rolling 12-month EBITDA excluding effect from financial investments and interest and currency derivatives (in NOK million). ** Power prices for Hafslund Hydropower rolling 12 month

5 Development interest-bearing debt and equity ratio Net interest-bearing debt and equity ratio Change in interest-bearing debt in Q2 11 Amounts in NOK million NOK billion Equity ratio % 6 Net interest-bearing debt EBITDA 144 Interest paid -142 Tax paid -94 Change in market value of financial instruments 569 Change in working capital 899 Investments Net loan portfolio adjustments Payment of dividend Q2 1 Q3 1 Q4 1 Q1 11 Q2 11 Net interest-bearing debt Net interest-bearing debt Equity ratio s.5

6 Working capital requirements- seasonal variation NOK mill Working capital and power prices NOK/kWh Seasonal variation in working capital driven by both volume sold and prevailing power prices. Strong demand for energy in the first and fourth quarters of the year..2 June through September is typically the least working-capital intensive period. -1 jun.9 sep.9 dec.9 mar.1 Working capital jun.1 sep.1 dec.1 Average power prices mar.11.1 jun.11 Working capital decreased a further NOK.9 billion in Q2 211 to NOK.3 billion as of 3 June GWh Power sales - sold volume Q2 9 Q3 9 Q4 9 Q1 1 Q2 1 Q3 1 Q4 1 Q1 11 Q2 11 s.6

7 Hydropower NOK million Q2 11 Q2 1 YTD 11 YTD 1 Operating revenue EBITDA Operating profit Sales price (NOK/kWh) Production volume (GWh) Investments quarter 12 months Profit and operating revenue figures reflect higher power production and power prices than in Q2 21. Production: 11 percent greater than in Q2 21. Nasdaq OMX (NO1) spot price: NOK.41 per kwh (Q2 21: NOK.37 per kwh). New aggregate in continuous operation since start-up in late April 211. Projected third-quarter 211 generation: approximately 94 GWh; anticipated volume is 6 GWh or 7% above normal for the third quarter. Q2 9 Q3 9 Q4 9 Q1 1 Q2 1 Q3 1 Q4 1 Q1 11 Q2 11 s.7 EBITDA per quarter EBITDA rolling 12-month

8 Hydropower production profile 35 GWh Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Normal s.8 *Normal annual production = 3,1 GWh based on 1-year average of production adjusted for capacity improvements.

9 District Heating NOK million Q2 11 Q2 1 YTD 11 YTD 1 Operating revenue EBITDA Operating profit Gross margin (NOK/kWh) Production volume (GWh) Investments Q2 is a seasonally weak quarter; deliveries are typically 16 percent of normal annual production. Lower district heating deliveries due to low market demand during early Q2. Contribution margin per kwh: up 6 percent. New delivery contracts signed in Q2 211: 64 GWh annual energy outtake. quarter months Investing in renewable energy sources: o 5 MW bio-oil boiler in Q1 212 o 56 MW wood powder-fired boiler scheduled for start-up in 212/ Q2 9 Q3 9 Q4 9 Q1 1 Q2 1 Q3 1 Q4 1 Q1 11 Q2 11 s.9 EBITDA per quarter EBITDA rolling 12-month

10 District Heating energy sources and unit cost Energy prices (NOK/kWh) Q2 1 Q3 1 Q4 1 Q1 11 Q2 11 Waste & biofuel Heat pumps Biooil and biodiesel Electricity Oil/natural gas Total production cost District Heating incl. Distribution Gross contribution margin GWh % Q2 has a seasonally low production cost per kwh due to high proportion of less-costly baseload energy inputs. Production costs depend on energy sources used and price differentials. Bio-oil implemented as a peakload energy source in three most recent quarters. Proportion of electricity and renewable energy sources up 4 percentage points to 8 percent in last 12 months Higher wholesale power prices result in increased district heating prices and production costs. Q2 1 Q3 1 Q4 1 Q1 11 Q2 11 s.1 Oil and natural gas Electricity Biooil og biodiesel Heatpumps Waste and biomasse Ratio Electricity and renewable energy sources rolling 12

11 District Heating production profile 35 GWh Jan Feb Mar Apr May Jun 3 37 Jul Aug 67 Sep 13 Oct Nov Dec Normal* s.11 * Normal = projected 211 production, given normal temperatures (1-year average) and current and planned customer tie-ins to the grid.

12 Network NOK million Q2 11 Q2 1 YTD 11 YTD 1 Operating revenue EBITDA Operating profit Investments Stable profit for Network business. Excellent supply reliability somewhat higher frequency of thunderstorms raised the number of service interruptions compared with Q2 21. Profit projection for 211 on a par with 21. quarter months Sale of Network s central grid infrastructure completed. Advanced Metering System (AMS) implementation regulations adopted: o o 8 percent of all installed meters to be AMS by 1 January 216. All customers electric meters to be replaced by 1 January 217. Q2 9 Q3 9 Q4 9 Q1 1 Q2 1 Q3 1 Q4 1 Q1 11 Q2 11 EBITDA per quarter EBITDA rolling 12-month s.12

13 Power Sales NOK million Q2 11 Q2 1 YTD 11 YTD 1 Operating revenues EBITDA Operating profit Sold volume (GWh) quarter Q2 9 Q3 9 Q4 9 Q1 1 Q2 1 Q3 1 Q4 1 Q months Q2 11 Revenue figure reflects increased prices for wholesale (spot) power contracts traded via Nasdaq OMX. 855 customers via wholly and partly owned companies. Satisfactory profit performance in a seasonally weak quarter; however, value decline on power derivatives results in NOK 21 million charge to Q2 211 profit. Power Sales had Q2 211 after-tax profit of NOK 3 per customer. Working capital down NOK 1.4 billion in 2Q 211. EBITDA per quarter EBITDA rolling 12-month s.13

14 Heat and Bioenergy NOK million Q2 11 Q2 1 YTD 11 YTD 1 Operating revenue EBITDA (7) 1 (1) Operating profit (9) (15) (8) (18) Energy production (GWh) Sales price (NOK/kWh) Used waste (thousand tonns) Investments Heat (energy recovery facilities): EBITDA: NOK 1 million, double the Q2 21 figure. Higher energy prices and increased use of waste-derived fuel. High steam delivery volumes at Borregaard plant. 1-week planned maintenance shutdown at Fredrikstad facility. Bioenergy (wood pellets production): Improvements to rock debris extractors and raw materials mills on schedule. Pilot operation and start-up expected in the third quarter of 211. s.14

15 Venture NOK million Q2 11 Q2 1 YTD 11 YTD 1 Operating revenue EBITDA Operating profit excl. REC 24 (8) REC effect on EBITDA (564) (747) (564) (1 991) Capital employed: Venture portfolio value growth: NOK 25 million in Q Capital employed, excluding REC: NOK 812 million. REC investment value decline: NOK 93 million, of which NOK 564 million (Q2 21: NOK 747 million) charged to operating profit. Energy efficiency and other investments 7% REC investment: 89. million shares or 8.93 percent of stock market value: NOK.8 billion (at NOK 9.28 per share). Telecom 59% 21% AMS (Advanced metering system) 12% Renewable energi s.15

16 Group profit and loss account NOK million Q2 11 Q2 1 YTD 11 Operating revenue Gain/loss financial items (527) (723) 196 (534) Cost og energy (1 9) (1 75) (194) (5 921) Gross margin Operating expenses (547) (558) 11 (1 69) EBITDA Depreciation (2) (245) 45 (41) Operating profit (56) (26) Interest expences (136) (124) (12) (258) Market value change loan portfolio (74) (37) (37) (48) Financial expenses (21) (161) (49) (36) Pre-tax profit (266) (367) Tax (15) (179) 29 (28) Profit after tax (416) (546) 13 (188) Earnings per share (EPS) in NOK (2.13) (2.8).67 (.96) s.16

17 Group balance sheet NOK million Intangible assets (9) Fixed assets (238) Financial assets (883) Accounts receivables and inventory (1 936) Cash and cash equivalents (544) 211 Assets (3 69) Equity (incl. Min. int.) (2 228) Allocation for liabilities Long-therm debt Other currently liabilities (69) Short-term debt (1 14) Equity and liabilities (3 69) Net interest-bearing debt Equity ratio 33 % 37 % -4 % 35 % s.17

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19 Additional analytic information

20 Earnings per share (excluding REC) By quarter NOK s.2

21 Group cash flow statement NOK million Q2 11 Q2 1 YTD 211 EBITDA excluding REC Interest paid (142) (13) (12) (332) Tax paid (94) (2) (74) (192) Market value changes and other liquidity adjustments (218) 591 Change in working capital Cash flow from operations (19) Investments in operations and expansion (256) (423) 167 (488) Sale of operating assets and business activities Portfolio changes Venture, etc (23) 292 (315) Cash flow, investment activities 46 (126) Cash flow for debt repayment and dividends s.21

22 Capital employed and return on capital employed Capital employed REC Market 4% 9% 2% Hydropower Return on capital employed (ROCE) excluding REC 11.5% 2.5 % 11.2% 2.5% 3% Venture 6.% Network 4% 5% Heat and Bioenergy 9. % 8.6% 21% District Heating 29 21* 211** s.22 * Return on capital employed (ROCE), of which 9.% is exclusive of the Hafslund Fibernett sales gain and the Biowood Norway write-down. ** Rolling 12-month return on capital employed, of which 8.6% is exclusive of the Hafslund Fibernett sales gain and the Biowood Norway write-down.

23 Capital structure development NOK billion Equity ratio % Q2 9 Q3 9 Q4 9 Q1 1 Q2 1 Q3 1 Q4 1 Q1 11 Q2 11 Net interest-bearing debt Equity ratio s.23

24 Loans portfolio data Debt maturity profile NOK million Portfolio data Q2 11 Q Bonds 47 % 47 % % Certificate loans 6 % 8 % -2 % Other loans 47 % 45 % 2 % 319 Q2 11 Q Certificate loans Bonds Other loans Loans at maturity, next 12 months NOK million 221 Nominal value - market value of loans Market value interest rate swaps Average interest incl. derivatives Proportion of loan portfolio with fixed interest Loans at maturity next quarter (NOK million) Unused drawing facilities (NOK million) ,4 % 4,2 %,2 % 45 % 37 % 8 % Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Certificate loans Bonds Other loans s.24

25 Power and CO2 price development 135 EUR EUR/MWh 3 15 EUR/tCO2 mai.9 jun.9 aug.9 sep.9 okt.9 des.9 jan.1 mar.1 apr.1 mai.1 jul.1 aug.1 sep.1 nov.1 des.1 jan.11 mar.11 apr.11 jun.11 jul.11 FWD 214 FWD 212 CO2 211 Nordic spotmarket s.25 Source: per 3 June 211

26 Hydropower Glomma waterway flow 3 m3/sek jan feb mar apr may jun jul aug sep oct nov dec Max. capacity utilization Q2 211 production: 3% below normal for the reporting period. Maximum capacity utilization: 1, m³. Projected Q3 211 production: about 94 GWh (approx. 6 GWh below normal for the reporting period) provided normal reservoir levels and precipitation. s.26

27 Other Activities NOK million Q2 11 Q2 1 YTD 11 YTD 1 Support (31) (27) (71) (59) Power trading (2) 9 (19) 6 Real estate Billing and customer service Financial derivatives, ass. comp Other (1) (1) Operating profit other s.27

28 Shareholders as of 3 June 211 # Shareholder Shareholding in thousands Class A shares held Class B shares 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 Norden %. % 5 MP Pensjon PK %. % 6 Odin Norge %. % 7 Folketrygdfonet %.1 % 8 Hafslund ASA %. % 9 AS Herdebred %.1 % 1 New Alternatives Fund, Inc %.3 % Total, 1 largest shareholders % 96.2 % Other shareholders % 3.8 % Total % 1 % s.28 Note: Shareholdings in thousand shares.

29 Key figures Group YTD 211 YTD 21 Capital matters Total assets Captial employed Equity Market capitalization Equity ratio 33 % 33 % Net interest-bearing debt Profitability excl. REC Profit after tax (188) (1 518) Earnings per share (EPS) (.96) (7.78) Cash flow per share District Heating YTD 211 YTD 21 Capital employed Sales price (NOK/kWh) Gross margin (NOK/kWh) Sales volume (GWh) Power Generation YTD 211 YTD 21 Capital employed Sales price (NOK/kWh) Production volume (GWh) Network YTD 211 YTD 21 Capital employed Annual Income ceiling NVE-capital (regulatory) Power Sales YTD 211 YTD 21 Capital employed of this working capital Total volume (GWh) Venture YTD 211 YTD 21 Capital employed exl REC Market value REC s.29

30 Definitions Items 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 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 positi Power generation Mean production Average power generation over the past 1 years.

31 Investor information Additional information is available from Hafslund s website: You can subscribe to Hafslund press releases Group SVP & CFO, Finn Bjørn Ruyter finn.bjorn.ruyter@hafslund.no tel: SVP Communications and Corporate Social Responsibility, Karen Onsager karen.onsager@hafslund.no tel: Financial Director and Investor Relations contact, Morten J. Hansen mjh@hafslund.no tel:

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