Performance in H1 2014: E-CO Energi reports lower H1 performance

26.08.14

Press release 06/14

E-CO Energi earned an H1 profit after tax of MNOK 299 in 2014, compared with MNOK 504 last year. The decline is largely ascribable to lower prices. Power production was 100 GWh lower than in H1 2013.

Combined with relatively normal precipitation, a mild early half of the year resulted in low power prices during the first six months of the year. The system price was 0.231 NOK/kWh. Hedging helped ensure that E-CO Energi obtained an average selling price of 0.266 NOK/kWh in H1, which was 15 per cent higher than the system price. In the early half of 2013, the average selling price was 0.334 NOK/kWh. The Group's power production totalled 5 024 GWh in H1 2014, compared with 5 123 GWh in H1 2013. Reservoir storage was about normal at the end of H1.

Revenues at mid-year came to MNOK 1 323, down MNOK 270 year-on-year. Operating expenses came to MNOK 568, up MNOK 67. The increase is generally ascribable to higher costs to feed into the Statnett grid. Earnings before tax came to MNOK 624, down MNOK 448 from H1 2013. After tax, H1 earnings were MNOK 299, entailing a decline of MNOK 205 year-on-year.

Investments came to MNOK 101 in H1 and consist mainly of maintenance and rehabilitation projects. After tenders were obtained for the development of the Mork power plant in Lærdal, it was decided that the project would not entail satisfactory profitability. E-CO Energi will examine opportunities for alternative, profitable development projects for the watercourse.

At 30 June 2014, the Group's equity ratio was 40.7 per cent (40.3 per cent), compared with 36.7 per cent at 1 January.

E-CO Energi has a strong level of price and currency hedging for the rest of 2014. Production is expected to be somewhat higher than normal. The net profit for the year is expected to be lower than last year.

Key figures* - E-CO Energi (MNOK):

 

H1 2014

H1 2013

2013

Operating revenues

1 323

1 693

3 228

Operating expenses

(568)

(501)

(1 075)

Operating profit/(loss)

755

1 192

2 153

Profit/(loss) before taxes

624

1 072

1 914

Profit after taxes

299

504

876

Equity

6 389

6 468

6 090

Equity and liabilities

15 818

15 902

16 269

*E-CO Energi's accounts are NGAAP-compliant.

 

Contacts:

Tore Olaf Rimmereid

President and CEO

+47 241 16910/909 92515

Stine Rolstad Brenna

CFO

+47 241 16915/928 03456

Torill Berdal

Vice President, HR and Communications

+47 241 16590/952 24373