First-quarter 2011 presentation to analysts. Hafslund ASA 4 May 2011 Christian Berg, CEO

Transcription

1 First-quarter 211 presentation to analysts Hafslund ASA 4 May 211 Christian Berg, CEO

2 Highlights first quarter 211 EBITDA: NOK 656 million - operating businesses on a par with Q1 21. Power Sales and District Heating: Strong demand in the first quarter of 211. Hydropower production: Low drainage basin influx resulted in 35 percent below-normal hydropower generation in the quarter. Hydropower sales price: NOK.474 per kwh, up four percent from Q1 21. Network: Profit level was normal for the quarter. High cash flow in the quarter: NOK 2.6 billion, of which NOK 1.5 billion is attributable to capital freed through asset sales. Board of Directors recommends an extraordinary dividend of NOK 5. per share in addition to an ordinary dividend of NOK 2.5 per share for the 21 accounting year. s.2

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

4 EBITDA: change from Q1 21 MNOK Q1 1 Hydropower District Heating Network Power Sales Venture Other Activities Q1 11 s.4

5 Development cash flow from operations EBITDA development 12-month rolling EBITDA vs. wholesale power prices MNOK % NOK/kWh Cash flow from operations up 38 percent over the past two years: Increased Powerprices (NOK 28 million) Network (NOK 18 million) Power sales (NOK 194 million) Increased renewable energy production: NOK 5 million EBITDA sensitivity: a NOK.1 per kwh change in wholesale power prices results in an approximately NOK 36 million change in EBITDA Q1 9 Q2 9 Q3 9 Q4 9 Q1 1 Q2 1 Q3 1 Q4 1 Q1 11. EBITDA* Power prices rolling 12-month average** s.5 * EBITDA = rolling 12-month EBITDA excluding financial asset value changes (in NOK million). ** Power prices for Hafslund Hydropower rolling 12 month

6 Interest-bearing debt: down NOK 2.9 billion in Q1 211 Net interest-bearing debt and equity ratio Change in interest-bearing debt in Q1 11 Amounts in NOK million NOK billion Equity ratio % 6 Net interest-bearing debt EBITDA 656 Interest paid -19 Tax paid -98 Change in market value of financial instruments 22 Change in working capital 923 Investments Net loan portfolio adjustments Net interest-bearing debt Q1 1 Q2 1 Q3 1 Q4 1 Q1 11 Net interest-bearing debt Equity ratio s.6

7 Working capital requirements- seasonal variation NOK mill 4 3 Working capital and power prices NOK/kWh,7,6 Seasonal variation in working capital driven by both volume sold and prevailing power prices. 2 1,5,4 Working capital normally peaks in Q1 and Q4 due to strong sold volumes.,3 Working capital: NOK 1.1 billion, down NOK 1 billion in Q ,2 mar.9 jun.9 sep.9 des.9 mar.1 jun.1 sep.1 des.1 mar.11 Working capital Average power prices 6 GWh Power sales - sold volume Q1 9 Q2 9 Q3 9 Q4 9 Q1 1 Q2 1 Q3 1 Q4 1 Q1 11 s.7

8 Hydropower NOK million Q1 1 1 Q Operating reven ue EBITDA Operating profit Sales price (NOK/kWh),47,46,39,28 Production volume (GWh) Investments quarter 12 months Profit and operating revenue figures reflect low power production and power prices somewhat above Q1 21. Production 35 percent below normal for the first quarter. Nasdaq OMX (NO1) spot price: NOK.531 per kwh (Q1 21: NOK.58 per kwh). New FKF 4 generator went online in late April 211: 1 GWh added to Hydropower s capacity. Projected Q2 211 generation: approximately 83 GWh; anticipated volume is 2 GWh or 13 % below normal for Q Q1 9 Q2 9 Q3 9 Q4 9 Q1 1 Q2 1 Q3 1 Q4 1 Q1 11 s.8 EBITDA per quarter EBITDA rolling 12-month

9 Hydropower production profile 35 GWh Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Normal s.9 *Normal annual production = 3, GWh based on 1-year average of production adjusted for capacity improvements.

10 District Heating NOK million Q1 11 Q Operating revenue EBITDA Operating profit Gross m argin (NOK/kWh),34,35,34,33 Production volume (GWh) Investments Higher wholesale power prices resulted in Q1 211 revenue growth compared with Q1 21. Q1 is a seasonally strong quarter; deliveries are roughly 4 percent of normal annual production. Production: 19 percent above normal for the quarter due to strong demand. quarter months Contribution margin per kwh somewhat lower due to higher production costs. New delivery contracts signed in Q1 211: 5 GWh annual energy outtake. NOK 5 million invested in new renewable production capacity in Q Q1 9 Q2 9 Q3 9 Q4 9 Q1 1 Q2 1 Q3 1 Q4 1 Q1 11 s.1 EBITDA per quarter EBITDA rolling 12-month

11 District Heating energy sources and unit cost Energy prices (NOK/kWh) Q1 1 Q2 1 Q3 1 Q4 1 Q1 11 Waste & biofuel,17,18,19,18,2 Heat pumps,21,15,12,22,21 Biooil and biodiesel,77,68 Electricity,53,48,58,61,57 Oil/natural gas,46,43,58,53,55 Total production cost,38,26,25,48,46 District Heating incl. Distribution,73,65,66,75,8 Gross contribution margin,35,39,41,27,34 Production costs depend on energy input source and price. Proportion of electricity and renewable energy sources up 6 percentage points to 8 percent in last 12 months. Use of bio-oil as peak load source in Q GWh % 9 Production costs increased NOK.77 per kwh from Q Q1 1 Q2 1 Q3 1 Q4 1 Q1 11 s.11 Oil and natural gas Electricity Biooil og biodiesel Heatpumps Waste and biomasse Ratio Electricity and renewable energy sources rolling 12

12 District Heating production profile 35 GWh Jan Feb Mar 116 Apr 73 May 45 Jun 3 37 Jul Aug 67 Sep 13 Oct Nov Dec Normal* s.12 * Normal = projected 21 production, given normal temperatures (1-year average) and current and planned customer tie-ins to the grid.

13 Nett NOK million Q1 11 Q Operating revenue EBITDA Operating profit Investments quarter 12 months Q Q2 9 Q3 9 Q4 9 EBITDA per quarter Q1 1 Q2 1 Q3 1 Q4 1 Q1 11 EBITDA rolling 12-month Regulatory income ceiling after grid losses for 211: NOK 2 13 million, down NOK 274 million from 21. Continuing high delivery quality and positive trend as to service interruptions. Several power outages due to Statnett substation problems in Romerike and Østfold regions. Profit projection for 211 on a par with 21, based on income framework notification from regulatory body NVE, planned maintenance, and anticipated interest rate levels. New licensee manpower competence regulations introduced that will affect Hafslund Network s business model. Regulatory decision to mandate the installation of AMS advanced metering systems is expected by July 211. s.13

14 Power Sales NOK million Q1 11 Q Operating revenues EBITDA Operating profit Sold volume (GWh) Revenue figure reflects increased prices for wholesale (spot) power contracts traded via Nasdaq OMX and increased power sales volume. Customer-base growth: 22 more customers compared with Q1 21. quarter 12 months Satisfactory profit performance in a seasonally strong quarter Q Q Q Q Q Q Q Q Q Power Sales had Q1 211 after-tax profit of NOK 1 per customer. Working capital: NOK 1.8 billion, down NOK.3 billion in Q EBITDA per quarter EBITDA rolling 12-month s.14

15 Heat and Bioenergy NOK million Q1 11 Q Operating revenue EBITDA 1 5 (51) (11) Operating profit 1 (3) (386) (27) Energy production (GWh) Sales price (NOK/kWh),27,24 Used waste (thousand tonns) Investments Heat (energy recovery facilities): Energy production up 25 percent from Q1 21. Formal take-over of Borregaard facility in Q Operating profit: NOK 14 million (Q1 21: NOK million); the figure includes a NOK 9 million positive nonrecurring item. Bioenergy (wood pellets production): Process improvements for eliminating rock debris and better raw material milling. Pilot operation and production start-up expected in second half of 211. s.15

16 Venture NOK million Q1 11 Q Operating revenue EBITDA 19 (1 199) (914) (198) Operating profit 9 (1 219) (1 14) (299) Capital employed: Sale of Fesil shares at NOK 374 million, yielded NOK 5 million gain. Capital employed, excluding REC: NOK 744 million. REC investment: 89. million shares or 8.93 percent of stock market value: NOK 1.7 billion (at NOK per share). Energy efficiency and other investments 7% Telecom 56% 27% AMS (metering system) 1% Renewable energi s.16

17 Group profit and loss account NOK million Q1 11 Q Operating revenue Gain/loss financial items (7) (1 219) (883) Operating expenses (4 543) (4 196) (347) (13 23) EBITDA 656 (52) Depreciation (21) (213) 12 (1 27) Operating profit 455 (733) Interest expences (121) (14) (17) (498) Market value change loan portfolio 25 (1) Financial expenses (96) (15) 9 (471) Pre-tax profit 359 (839) Tax (13) (133) 2 (574) Profit after tax 228 (972) 1 2 (392) Earnings per share (EPS) in NOK 1.17 (4.98) 6.15 (2.1) s.17

18 Group balance sheet NOK million Intangible assets (1) Fixed assets Financial assets (156) Accounts receivables and inventory (1 314) Cash and cash equivalents Assets (24) Equity (incl. Min. int.) Allocation for liabilities Long-therm debt (975) 1 98 Other currently liabilities (434) Short-term debt Equity and liabilities (24) Net interest-bearing debt (2 929) Equity ratio 37 % 35 % 2 % 34 % s.18

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20 Additional analytic information

21 Earnings per share (excluding REC) By quarter NOK s.21

22 Group cash flow statement NOK million Q1 11 Q EBITDA 656 (52) Paid intrests (19) (189) (1) (536) Paid tax (98) 14 (112) (148) Marketvalue changes and other liquidity adjustments (1 26) 982 Change in working capital, etc. 923 (533) (1 656) Total cash flow from operations Net operations and expansion investments (232) (258) 26 (1 647) Sold operations Portfolio changes Venture, etc (6) Cash flow from investments activities 1 38 (264) (1 36) Cash flow to down payments and interests (264) (741) s.22

23 Capital employed and return on capital employed Capital employed REC Market 7% 12% 18% Hydropower Return on capital employed (ROCE) excluding REC 11.5% 2.5 % 9.4% 2% Venture 6.% 4% Heat and Bioenergy 9. %* Network 38% 19% District Heating ** s.23 * 12-month return on capital employed (ROCE) excluding sale of Fibernett and the BioWood Norway write-down. * * Rolling 12-month return on capital employed (ROCE)

24 Capital structure development NOK billion Equity ratio % Q1 9 Q2 9 Q3 9 Q4 9 Q1 1 Q2 1 Q3 1 Q4 1 Q1 11 Net interest-bearing debt Equity ratio s.24

25 Loans portfolio data Debt maturity profile NOK million Portfolio data Q1 11 Q4 1 Bonds 47 % 4 % 7 % Certificate loans 8 % 12 % -4 % Other loans 45 % 48 % -3 % Certificate loans Bonds Other loans 22 Loans at maturity, next 12 months NOK million Nominal value - market value of loans Market value interest rate swaps Average interest incl. derivatives Q1 11 Q ,2 % 4, %,2 % Proportion of loan portfolio with fixed interest Loans at maturity next quarter (NOK million) Unused drawing facilities (NOK million) 37 % 33 % 4 % Apr Mai Jun Jul Aug Sep Okt Nov Des Jan Feb Mar Certificate loans Bonds Other loans s.25

26 Power and CO2 price development 135 EUR EUR/MWh 3 15 EUR/tCO2 mar.9 jun.9 sep.9 des.9 mar.1 mai.1 aug.1 nov.1 jan.11 apr.11 FWD 214 FWD 212 CO2 211 Nordic spotmarket s.26 Source: (as of 1 April 211)

27 Hydropower Glomma waterway flow 2 m3/sek jan feb mar apr may jun jul aug sep oct nov dec Max. capacity utilization Q1 211 production: 35% below normal for the reporting period. Maximum capacity utilization: 93 m³/second. Projected 2Q 211 production: about 93 GWh (approx. 2 GWh below normal for the reporting period) provided normal reservoir levels and precipitation. s.27

28 Other Activities NOK million Q1 11 Q Support (4) (31) (129) (152) Power trading (18) (3) 29 (1) Real estate () Billing and customer service Financial derivatives, ass. comp Other 49 (53) Operating profit other (28) s.28

29 Shareholders as of 31 Mars 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 Hafslund ASA %. % 8 Folketrygdfonet %. % 9 AS Herdebred %.1 % 1 Bank of New York %.3 % Total, 1 largest shareholders % 96.2 % Other shareholders % 3.8 % Total % 1 % s.29 Note: Shareholdings in thousand shares.

30 Key figures Group YTD 211 YTD 21 Capital matters Total assets Captial employed Equity Market capitalization Equity ratio 37 % 34 % Net interest-bearing debt Profitability excl. REC Profit after tax 228 (972) Earnings per share (EPS) 1.17 (4.98) Cash flow per share 6.73 (.) District Heating YTD 211 YTD 21 Capital employed Sales price (NOK/kWh),8,73 Gross margin (NOK/kWh),34,35 Sales volume (GWh) Power Generation YTD 211 YTD 21 Capital employed Sales price (NOK/kWh),47,46 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.3

31 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.

32 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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