Contents. Directors report and accounts

Transcription

1 Interim report

2 Contents Interim report 3 Declaration 7 Profit and loss account 8 Balance Sheet 9 Extended consolidated profit and loss account 11 Cash flow statement 12 Changes in Group equity 13 Notes on the interim accounts 14 2

3 Interim report Lyse is a Norwegian industrial Group operating within the fields of energy and telecommunication. The business comprises the production and sale of energy and telecommunication products, plus the construction, operation and maintenance of infrastructure. The Group owns and operates significant infrastructure facilities associated with the business areas. Lyse sells energy and telecom products both here within the region and nationally to private and business customers. Its principal market is located in Sør-Rogaland. Customers are offered energy products such as electricity, heating, cooling, biogas and natural gas. The telecom products and services are sold under the brand name of Altibox and include internet, TV and alarms as well as video and voice services. Lyse is owned by 16 municipalities in the Sør-Rogaland district of Norway and has its head office in Stavanger. The company has a strong regional base. Lyse shareholders have a long-term industrial perspective concerning the development of the Group. High priority is given to profitability and to long-term stable returns on investments in operating activities. Financial results, first six months In the first six months of the year, the Lyse Group had operating income of NOK 2,795 million as against NOK 2,737 million during the first six months of The Energy business area was responsible for NOK 1,302 million of the collective operating income, while the operating income of the Group s Grid business was NOK 573 million. The Telecommunications business area had an operating income of NOK 728 million, an increase of NOK 154 million on the first six months of The operating result before depreciation (EBITDA) was NOK 1,735 million, while ordinary operating profit was NOK 1,360 million. The operating result is NOK 104 million better than in the corresponding period in the previous year. The change was mainly due to improved profits from the Energy business area as a result of positive unrealised changes in the value of financial power contracts entered into to secure the price of future power generation. The weakened financial results for the period are due mainly to the falling market value of financial investments that are available for sale. Profits after tax were NOK 456 million, as against NOK 472 million in the previous year. Unrealised positive changes in the value of power contracts and other financial instruments amount to NOK 378 million in the first six months, corresponding to NOK 271 million after tax. Corrected for unrealised changes in value, the interim result after tax was NOK 185 million, while for the corresponding period last year the figure was NOK 453 million. The Lyse Group increased its shareholding in Skangass AS from 67.1 % to 100 % as of 1 June this year. From the date of acquisition onwards, Skangass AS is included as a 100 % owned subsidiary in Lyse s consolidated accounts. In the following, unrealised changes in the value of power contracts and other financial instruments are kept outside the financial review of the interim accounts, to ensure that the operating results are analysed. Please refer to Note 5 in which unrealised changes in the value of power contracts and other financial instruments are displayed, subdivided into segments. Returns Operations gave a return of 7.1 % in the first six months, measured on operating profits in relation to average capital employed. Compared to the first six months of 2010 this is a weakening of 3.1 per cent. The return on equity, before unrealised changes in the value of power contracts and financial instruments, was 4.3 % (11.3 %) in the period, and the return on total capital before unrealised changes in the value of power contracts and financial items was 5.5 % (7.4 %). The Energy business area The operating results before unrealised changes in the value of financial power contracts was NOK 884 million. The corresponding result for the first six months of last year was NOK 1,110 million. The power prices in the first six months were influenced by a very strained hydrological situation, which caused a shortage of generation resources and high market prices. In Quarter 2, the melting snow and plentiful precipitation meant that the hydrological balance was strengthened significantly and is now being normalised. During the same period, the prices have been falling and have almost been halved in comparison with the market prices early in the winter. The average spot price in the Nordic countries was NOK 0.463/kWh in the first six months, while the area price in Lyse s generation area has been approx NOK 0.03/kWh higher. For the same period in 2010 the average spot price in the Nordic countries was NOK 0.42/kWh. 3

4 In the first six months, Lyse generated 2.5 TWh of hydroelectricity, which is 0.9 TWh lower than for the same period in the previous year. The operating result from the gas and heating products was NOK 73 million in the first six months, as against NOK 44 million in the previous year. The prices of alternative energy carriers have been high during the period, particularly in the first months of the year. Prices achieved for gas and district heating products are clearly better than those for the corresponding period last year. The unusually long, cold winter last year meant a huge demand for both natural gas and district heating, which this year has seen more normal temperature conditions and therefore lower supply volumes. 430 GWh of gas and district heating was supplied during the first six months, which is 30 GWh lower than for the same period in the previous year. The positive market trend is continuing, and new sales to date this year have guaranteed significant supply volumes in association with existing infrastructure. The LNG business went into commercial operation at the turn of the year and operating income for the first six months amounts to NOK 119 million. 27,000 tonnes of LNG have been supplied, equivalent to 403 GWh of energy in the first six months. Problems linked to trailer transportation in Quarter 1 meant that the company missed out on supply volumes properly paid for during this period. In the first six months, the business gave an operating profit before depreciation (EBITDA) of NOK 63 million and a negative operating result of NOK -93 million. This result reflects the fact that a significant proportion of the company s costs are fixed and that capacity utilisation at the LNG factory has been low. The building of a reception terminal at Øra is ongoing, and the project will be delivered within the planned cost and time frame. Reception of LNG at the terminal took place on 14 July this year. There is a large and growing market demand for this operation s products. Telecommunications business area In the first six months, this business area had a turnover of NOK 728 million, as against NOK 574 million in the same period of the previous year. This business area had an operating result before depreciation (EBITDA) of NOK 194 million in the first six months and an operating profit of NOK 22 million. Correspondingly, in the previous year, the result before depreciation (EBITDA) was NOK 102 million and the operating result was NOK -24 million. In its own region, Telecom has more than 51,500 customers, and the business is delivering stable growth where customer connections on the established infrastructure are given priority. In the company s own region, the operating result before depreciation (EBITDA) was NOK 74.8 million with investments amounting to NOK 56.8 million. For the same period last year, the results were NOK 61.3 million and NOK 66.4 million, respectively. Nationally the telecommunication business is still in a phase of strong growth with negative results and capital requirement. In general, the investments are linked to excavation / cable-laying work for fibre-optic infrastructure. The investments in Lyse s broadband business outside its own region was NOK 413 million in the first six months of including the purchase of shares in Skagerak Fibernett AS. The operating result before depreciation (EBITDA) was NOK 81.7 million, an improvement in profits of NOK 58.2 million in comparison with the same period in the previous year. There is still a great demand for the business s products, and sales have been good this summer. In the first six months, Altibox was voted Norway s best supplier of broadband and TV services in 2010, by both the Norsk Kundebarometer customer survey and the EPSI Norway rating organisation. Revenue per customer is high, and the most appreciable risk for the business lies in the rate of connection for new customers and the costs per connected customer. Electricity grid and other infrastructure The operating result from the Group s Grid business is NOK 153 million, as against NOK 162 million in the previous year. During the period, NOK 119 million have been invested in the Grid business, and those investments reflect the continuation of major construction activity in the region. The customer power interruption costs (KILE costs) in the first six months were NOK 3.4 million, which indicates a good level of operating reliability during the period. The return on net capital, measured in compliance with Norwegian accounting principles, was 7.6 % as against 11.9 % in the first six months of the previous year. The operating result from development, operations and maintenance is NOK 22 million as against NOK 16 million in the previous year. The company Lyse Infra handles development and operating duties for other companies in the Lyse Group, and otherwise competes for assignments on the market. Turnover during the first six months was NOK 411 million of which NOK 55 million were sales to external customers. Correspondingly, turnover during the first six months of the previous year was NOK 407 million of which NOK 36 million were sales to external customers. The company s reserve orders are long-term and will provide stable employment. 4

5 Marketing The Marketing and Customer Support business area covers services supplied by Lyse AS. These are primarily marketing, sales and customer contact plus metering, invoicing and collection of monies owed, on behalf of other Group companies. The operating result from marketing was NOK -1 million, which is an improvement of NOK 3 million as compared to the same period in the previous year. This business area makes efficiency and quality a high priority. In the first six months, the proportion of external sales constituted 9 % of the company s total turnover. Correspondingly, the proportion of external sales was 15 % for the same period in the previous year. Financial items and tax Net financial costs before writedowns of share investments constituted NOK 245 million in the first six months, as against NOK 179 million in the previous year. Interest on subordinated loan to the Group s shareholders constituted NOK 66 million as against NOK 64 million in Of the Group s interest-bearing debt of NOK 9,973 million, around 50 % has been hedged. At the end of the first six month period, certificate loans with a term of one year or less constituted NOK 1,700 million of an external borrowings portfolio of NOK 7,223 million. Repaid capital amounts to NOK 2,750 million. The investment in Noreco ASA has been written down during the period by NOK 116 million as a consequence of the very weak trend in share price for this company in Quarter 2.. Lyse Energi AS has a shareholding of 9.7 % in the company, and the Board is engaged in taking care of the values represented by the investment. The Group uses hedge accounting based on IFRS on interest and currency futures. Unrealised changes in value are not recognised in the profit and loss account, but are adjusted to Group shareholders equity. At the end of the first six months, unrealised changes in value in interest and currency futures were NOK 21 million and NOK -27 million, respectively, before tax. The tax costs constituted NOK 536 million in the first six months. The corresponding figure for the previous year was NOK 553 million. The profit per share in the first six months was NOK 452 as against NOK 468 in the same period last year. The consolidated accounts have been prepared on the going concern assumption. Cash flow and capital circumstances Operational activities produced a cash-flow of NOK 695 million, as against NOK 566 million in the same period of the previous year. The Group s liquidity reserve was NOK 4,213 million at the end of the period. In the first six months of, Lyse invested NOK 944 million in plant and machinery and financial assets, an increase of NOK 60 million on the same period in the previous year. Investments linked to the energy business constitute NOK 117 million. In the first six months, the LNG business in which Lyse now owns 100 % of the shares, invested NOK 114 million primarily in conjunction with building the LNG terminal at Øra. NOK 119 million was invested within the grid business. Investments in the Group telecommunications business including the acquisition of Skagerak Fibernett AS were NOK 470 million in the first six months of. Interest-bearing debt amounted to NOK 9,973 million at the end of June. At the start of, interest-bearing debt was NOK 9,652 million, which produces an increase in interest-bearing debt of NOK 321 million in the first six months. The level of interest-bearing debt was 51 %, as against 48 % at the end of the previous year. The Group s total capital is NOK 19 billion, and the equity ratio is 22 %. Including subordinated loans, the equity ratio is 36 %. The return on equity before unrealised changes in value was 4.3 % in the first six months, the equivalent return for the same period last year was 11.3 %. Health, environment and safety Sick-leave in the first six months was 4.45 % for the Group as against 3.83 % in the first six months of The H-value (the number of LTAs per million working hours) in the first six months is 1.4. There has been one injury which has led to sick-leave. The damage was not serious, and involved 5 days of absence. Future outlook Over a short period of time, the winter s extremely strained power situation was normalised thanks to higher than normal precipitation and large-scale imports throughout large parts of the winter. However, Lyse has much lower reservoir levels than the rest of the country because large parts of Lyse s reservoir capacity are in multi-year 5

6 reservoirs, i.e. reservoirs that are built with a view to guaranteeing supply in strained situations and which have a long fill time. The power generation will therefore also be relatively low this year and will be encumbered with greater uncertainty than normal with the generation volume in the somewhat longer term also. It has now finally been decided to introduce the electricity certificate market in Norway also as from It is thereby clear that we must prepare for a strong power balance in the years ahead. To ensure that the power surplus is utilised sensibly, it is important that more exchange capacity with foreign countries is realised rapidly and that power-intensive industry at least maintains its consumption. Bearing in mind the adopted phasing out of nuclear power plants in Germany and therefore further development of power over which there is little control there, greater exchange capacity will mean that the controllability of Norwegian hydroelectric power will be utilised. For several years, Lyse has been actively working to improve the exchange capacity. The NorGer project, which is planning a cable between Norway and Germany, is the most mature project and has reached a phase in which Lyse, together with Agder Energi and the Swiss company EGL, found it most appropriate to sell its shareholdings to Statnett. Together with Norwegian and foreign interested parties, Lyse has also started Northconnect which is evaluating the laying of a cable between Norway and the UK. With the certificate market in place, Lyse will evaluate different development options within both hydroelectric and wind power. Hydroelectricity generation is already highly taxed. Nevertheless there are strong forces at work to make property tax even more rigorous. The industry is collectively attempting to prevent this. The company Skangass AS, which owns and runs the LNG plant in Risavika in Sola municipality, is now 100 % owned by Lyse. The LNG plant has now been in successful operation for about six months. The reception terminal in Øra in Østfold was brought into operation in July and transport agreements for cars and boats are in place. The Nordic market for LNG is showing good growth and large parts of future production capacity have now been sold. Nevertheless, the deliveries for the current year and next year will be lower than the production capacity. The volume risk has been reduced to some extent, but the pricing of LNG is largely linked to the customer s alternative cost. This operation s profit trend is therefore influenced by the market development for alternative energy carriers. There is a need to reinforce the power supply to Sør-Rogaland. The development of the gas and district heating networks in the region have alleviated the pressure on the power grid, but the last two cold winters and anticipated future growth in the region have shown that there is an urgent need to reinforce the power supply in to that area. The existing grid does not provide sufficient spare capacity in the event of a major failure in the winter season. There is an increase in the number of hours in which a lack of spare capacity can mean problems. Although the power consumption flattens out mainly with families, the increase in the population of Sør-Rogaland will lead to an increase in consumption and a more strained supply situation. Lyse therefore believes that it is important rapidly to put in place a reinforcement of power supply to the region. In collaboration with Statnett, Lyse is examining the possible options for reinforcing the power supply to Sør-Rogaland. In this connection, Lyse has applied for a concession to create its own central grid company together with Statnett. The plan is to establish the company with 50/50 ownership. The NVE has rejected this application, and Lyse has appealed against that rejection to the Ministry of Petroleum and Energy. While the appeals procedure is taking place, Lyse continues to work on preparing a feasibility study as to how the region can reinforce the power supply. In the subsequent process, Lyse will be engaged in having a good dialogue with the municipalities and the other interested parties affected. Lyse has no influence over which solution is selected. The most important task for Lyse is to supply power to households, institutions and companies in the region. Lyse s telecommunications business, within fibre-optic networks, media and alarms, has grown to be a significant business area, both in relation to investments, turnover and as a workplace. More and more players on the national as well as the international scene are now choosing broadband solutions based on fibre-optic cable even in the private market. Lyse has a long-term ownership strategy within national telecommunications, and the Board intends to grow the business. The Board will continue with its work to achieve predictable and non-discriminating outline conditions a necessary precondition for the rapid and cost-effective development of a high-speed fibreoptic network. Stavanger 24 August The Board of Directors of Lyse Energi AS 6

7 Declaration The annual financial statements for the period 1 January to 30 June have been prepared according to applicable accounting standards and provide, in our opinion, a true and fair presentation of the company s assets, liabilities, financial position and result in all material aspects. We also declare that the Board s report provides a true and fair representation of the development, operating result and financial position of the Group, together with a description of the key factors regarding risk and uncertainty currently facing the Group. Stavanger, 24 August Ivar Rusdal Kristin Reitan Husebø Håkon Anders Rege Odd Kristian Reme Chair Deputy Chair Board Member Board Member Solveig Ege Tengesdal Eli Laland Gro Vetnes Leif Sigbjørn Rage Board Member Board Member Employee representative Employee representative Eimund Nygaard Group CEO 7

8 Profit and loss account (NOK thousand) Sales income Purchase of energy and cost of goods sold Payroll and other HR costs Depreciation and writedowns Other losses / profits (-) net Share of profits from associate companies and joint ventures Concession fees and property tax Other operating costs Operating profit/loss Financial income Financial costs Writedown of financial assets Profit before tax Surplus profits tax Resource rent tax Tax costs Profit for the period Allocated: Shareholders Non-controlling shareholder interests

9 Balance Sheet (NOK thousand) ASSETS Fixed assets Waterfall rights Other intangible assets Deferred tax benefit Deferred tax benefit resource rent Plant and machinery Investments in associate companies and joint ventures Financial assets available for sale Derivatives Other receivables Total fixed assets Current assets Stock Accounts receivable and other receivables Derivatives Bank deposits, cash etc Total current assets TOTAL ASSETS

10 Balance Sheet (NOK thousand) EQUITY AND LIABILITIES Shareholders equity Corporate capital Premium fund Earned equity Other equity not recognised Equity allocated to company shareholders Non-controlling shareholder interests Total shareholders equity Liabilities Borrowings Deferred tax Deferred tax resource rent Pension obligations Derivatives Provisions Other long-term liabilities Total long-term liabilities Borrowings Accounts payable and other short-term liabilities Tax payable Derivatives Provisions Total short-term liabilities Total liabilities TOTAL EQUITY AND LIABILITIES Stavanger 24. August Ivar Rusdal Kristin Reitan Husebø Håkon Anders Rege Odd Kristian Reme Chair Deputy Chair Board Member Board Member Solveig Ege Tengesdal Eli Laland Gro Vetnes Leif Sigbjørn Rage Board Member Board Member Employee representative Employee representative Eimund Nygaard Group CEO 10

11 Extended consolidated profit and loss account (NOK thousand) Profit for the period Extended profit: Financial assets available for sale Cash flow hedge forward exchange contracts Cash flow hedge interest swap arrangements Currency conversion differences Total extended profit after tax Total profit for the period Allocated: Shareholders Non-controlling shareholder interests Total profit for the period

12 Cash flow statement (NOK thousand) Net cash flow from operations Cash flows from investment activities Payment on purchase of plant and machinery Receipts from sale of plant and machinery Payment on purchase of subsidiary Payments on purchase of shares in associates and joint ventures Payment on loans to associate companies and joint ventures Payments out (-)/ in net other investments Net cash flow used for investment activities Cash flow from financing activities Borrowings Instalment on interest-bearing debt Dividend to company shareholders Net cash flow used for financing activities Change in cash and cash equivalents Cash and cash equivalents as at 1 January Change in cash acquisition of subsidiaries Cash and cash equivalents at end of period

13 Changes in Group equity (NOK thousand) Share capital and premium Other equity not recognised in the profit and loss account Earned equity Equity allocated to company shareholders Noncontrolling share-holding interests Total shareholders equity Shareholders equity as at 31 December Profit for the period Extended profit and loss account: Change in value of financial assets available for sale Cash flow hedge Reclassification to earned equity Conversion difference Total extended profit after tax Total profit for the year after tax Dividend Minority interests from business combinations Other changes entered directly against equity Shareholders equity as at 30 June Share capital and premium Other equity not recognised Earned equity Equity allocated to company shareholders Noncontrolling share-holding interests Total shareholders equity Shareholders equity as at 31 December Profit for the period Extended profit and loss account: Change in value of financial assets available for sale Kontantstrømsikring Omklassifisering til opptjent egenkapital Omregningsdifferanse Sum utvidet resultat etter skatt Årets totalresultat etter skatt Utbytte Minoritetsinteresser fra virksomhetssammenslutninger Andre endringer ført direkte mot egenkapital Egenkapital 30. juni

14 Notes on the interim accounts Note 1 - Summary of the most important accounting principles The consolidated accounts for the first six months of year have been drawn up in compliance with the accounting principles in the IFRS (International Financial Reporting Standard). The interim accounts are submitted in accordance with IAS 34. The interim accounts do not provide information to the same extent as the annual accounts and must therefore be viewed in relation to the consolidated annual accounts for The accounting principles applied in the interim accounts are the same as those described in Note 2 in the consolidated accounts for The interim report has not been subject to auditing. Note 2 - Net loss / profit (-) at fair value over profit or loss Options Financial power contracts - held for trading purposes Currency derivatives - held for trading purposes Long-term financial power contracts Reclassification added value acquisitions of subsidiaries Reclassification negative goodwill acquisition of subsidiaries Other losses / profits (-) net, classified as operations Forward exchange contracts at fair value over profit or loss (hedging currency loan) Currency loan measured at amortised cost Writedown investments available for sale Other losses / profits (-) net, classified as finance The writedowns of investments available for sale include the writedown of Norwegian Energy Company ASA by NOK 116 million as at 30/06/. This writedown is based on the quoted market value as at 30/06/. Note 3 Interest-bearing debt Net borrowings on the bond market and the certificates market amounted to NOK 170 million in the first six months of. In addition, repayments have been made on subordinated loans to a sum of NOK 50 million and payments of shareholders equity have been received from minority shareholders to a sum of NOK 70 million with the capital increase in subsidiaries. Note 4 Distributed dividend Total dividend distributed in was NOK 340 million. 14

15 Notes on the accounts The business areas are identified on the basis of the Group`s internal reporting structure. Essentially, the Group`s business operates within Rogaland. However, the Telecommunication business area has partnership agreements with companies located elsewhere in Norway. gross operating income associated with this is specified in particular in the table below. Transactions and transfers between Group business areas are carried out on ordinary business terms and conditions. No individual external customer contributes any more than 10 per cent on the enterprice`s operating income. Figures for comparison have been revised. The Energy business are operates within power generation, power trading, power sales to end-users, as well as natural gas, district heating and cooling plants. The LNG business area operates within processing, sales and distribution of LNG (Liquefied Natural Gas). This business area is included as part of the Lyse Group as from and including Quarter 2 of The production plant was completed at around the turn of the year 2010/. The Grid business area operates within the field of power distribution and is regulated by the Norwegian Water Ressources and Energy Directorate (NVE). This business area owns infrastructur associated with distribution of hydroelectronic power. The Telecommunication business area offers products and services within broadband, telephony, alarms and IT, and owns the fibre-optic infrastructure within the Group, which is generally limited to the company`s own region. The Development, Operation and Maintenance business area supplies sevices within the fields of infrastructure development, operations and maintenance. The services are supplies mainly to the business areas of Transmission, Energy and Telecommunication. The Marketing business area supplies services connected with marketing and customer services mainly to in-house business areas. The Corporate Functions item consists of corporate services within the fields of finance, human resources and other joint services. Corporate Functions is the owner of the company buildings. Reconciliation of operating profits with consolidated profits for the period Millioner kroner Operating profit/loss Financial income Financial costs Tax costs Profit for the period

16 Note 5 continues Profit/Loss NOK million Energy LNG Transmission Telecom Development, operation and maintenance Marketing Corporate functions Eliminations Group Gross income from the business area Sales between the business areas Income from external customers Operating profit/loss Of which: Unrealised changes in value Returned income surplus/deficit Other IFRS effects Total Gross income from the business area Sales between the business areas Income from external customers Operating profit/loss Of which: Unrealised changes in value Returned income surplus/deficit Other IFRS effects Total Gross income from the business area Sales between the business areas Income from external customers Operating profit/loss Of which: Unrealised changes in value Returned income surplus/deficit Other IFRS effects Total

17 Note 5 continues Total assets NOK million Energy LNG Transmission Telecom Development, operation and maintenance Marketing Konsernfunksjoner Elimineringer Konsern (11 345) (7 411) (11 884) Note 6 Business integration Purchase of remaining shares in Skagerak Fibernett AS Since 2007 Skagerak Fibernett AS has been an Altibox partner of the Lyse Group. The company has built up a fibreoptic infrastructure through partnerships and has supplied the Altibox product to the general public and businesses in Vestfold and Telemark. In April 2009, the Lyse Group took over 34 % of the shares in Skagerak Fibernett AS from Skagerak Energi AS. The purchase agreement also contained options for Skagerak Energi AS to sell out and for the Lyse Group to buy more shares. In July 2010 Skagerak Energi AS took advantage of the sales option in the agreement. As a consequence of this, the Lyse Group has taken over the remaining 66 % of the shares in Skagerak Fibernett AS as of 3 January. Procurement cost (In NOK thousands) Cash payment on acquisition, from 34 % to 100 % of the shares in Skagerak Fibernett AS Fair value of previous shareholding Total acquisition cost Calculation of goodwill Fair value of net acquired assets (see below) Goodwill The calculations are based on IFRS 3R which came into force as from Goodwill is linked to anticipated future earnings and growth, and referred to the Telecommunications business area. Fair value of goodwill is provisional until final valuation of net assets is available. In addition, the Group has recognised a profit of NOK 18.9 million as a consequence of the original shareholding in Skagerak Fibernett AS of 34% being valued at fair cost at the date of transfer of control. The profit is entered under share of profit/loss linked to associate companies and joint ventures. 17

18 Note 6 continues Provisional establishment of assets and liabilities as at the date of acquisition to 100 % (in NOK thousands) Book value Value surplus/ shortfall Fair value Concessions, patents, licences and similar Deferred tax benefit (deferred tax) Existing goodwill Customer relations Brand names Plant and machinery Contracts/entitlements Accounts receivable Other short-term receivables Cash and cash equivalents Pension obligations Other long-term liabilities Accounts payable Other short-term liabilities Other short-term liabilities Skagerak Fibernett AS had a collective turnover of NOK 76 million and a negative operating result after tax of NOK 5 million in the period 1 January to 30 June. Purchase of remaining shares in Skangass AS As at , Lyse Neo AS has a 67.1 % shareholding in Skangass AS. As at 1 June Lyse Neo AS bought the remaining 32.9 % of the shares in Skangass AS. In the accounts, this purchase is treated as a buyout of non-controlling shareholder interests. The purchase does not involve any new calculation of goodwill, nor does it have any impact on the profits on the date of the acquisition. Capital increase in Jørpeland Kraft AS In February a capital increase of NOK 210 million was implemented in Jørpeland Kraft AS. Lyse Produksjon AS participated in increasing the capital in relation to its % share in ownership. 18