"We are very satisfied with the H1 2012 results. Despite considerably lower prices than in 2011, the result improved from last year due to higher production and successful price hedging" says Tore Olaf Rimmereid, President and CEO of E-CO Energi.
H1 2012 was very different from the same months of 2011. Last year, the Scandinavian power system had a significant hydrological deficit relative to the normal level through most of the first six months. Hydropower production was low and power prices were higher. Heavy precipitation in the latter half of 2011, and a mild autumn and early winter, led to full reservoirs at the outset of 2012. The inflow during H1 has also been relatively high. This has led to high power production and significantly lower power prices than in 2011. The spot price quoted for Oslo was nearly half of what it was last year.
Price and currency hedging largely cushioned the price fall for E-CO Energi. The Group's actual selling price was 28 per cent lower than last year and 32 per cent higher than the average Oslo price (NO1) at mid-year. At the same time, E-CO Energi's power production climbed by 40 per cent.
Operating revenues totalled MNOK 1 778 in H1, up four per cent year-on-year. Earnings before tax came to MNOK 1 135, an increase of two per cent from last year. However, the tax rate dropped to 49 per cent against last year's 59 per cent, meaning taxes were MNOK 100 lower than last year. The decrease is because the resource rent tax is calculated on the basis of the market's spot prices and not the actual selling price. The net profit in H1 2012 was MNOK 577, up 28 per cent from last year).
The Group's power production was 5 575 GWh in H1 this year, compared with 3 985 GWh in H1 2011.
The area price for Oslo (NO1) was 0.242 NOK/kWh on average for H1, compared with 0.47 NOK/kWh in the same months last year. The Group's average actual selling price, excluding concessionary power, was about 0.32 NOK/kWh (roughly 0.45 NOK/kWh).
At 30 June 2012, the Group's equity ratio was 40.3 per cent (37.9 per cent), compared with 36.1 per cent at 31 December 2011.
E-CO Energi has a relatively good level of price and currency hedging for the rest of 2012. In the light of the current outlook for prices and production, the Group nonetheless expects a more modest profit for the latter half of 2012 than for the same months last year.
Key figures*- E-CO Energi (MNOK):
| H1 2012 | H1 2011 | 2011 | |
|
Operating revenues |
1 778 | 1 716 | 3 514 |
|
Operating expenses |
(507) | (479) | (1 064) |
| EBIT | 1 271 | 1 237 | 2 450 |
| Profit before taxes | 1 135 | 1 108 | 2 171 |
| Profit after taxes | 577 | 450 | 943 |
|
Equity |
6 381 | 6 111 | 5 804 |
| Equity and liabilities | 15 820 | 16 136 | 16 088 |
*E-CO Energi's accounts are NGAAP-compliant.
Contacts:
|
Tore Olaf Rimmereid |
Managing Director |
+47 241 16910 / |
|
Stine Rolstad Brenna |
CFO |
+47 241 16915 / |
|
Torill Berdal |
Vice President, HR and Communications |
+47 241 16590 / |
E-CO Energiis one ofNorway?s leading energy groups. E-CO owns and operates power plants throughout southernNorwayand is the country's second largest power producer.The Group owns stakes in Oppland Energi AS, Opplandskraft DA, Vinstra Kraftselskap DA, Embretsfosskraftverkene DA and Norsk Grønnkraft AS.
