Profit at end-September 2014: E-CO Energi - YTD profit of some MNOK 400

04.11.14

Press release 07/14

E-CO Energi reported a net YTD profit after tax of MNOK 403, down MNOK 219 year-on-year. The decline is first and foremost due to lower power prices. Once again this year, hedging has helped ensure that the Group obtained a higher selling price than the spot price on Nord Pool. The decision to build the Rosten Power Plant was taken in Q3.

The summer was warm and relatively dry, contributing to a rise in power prices in Q3 compared with Q2 2014. The difference between the system price and the area prices in southern Norway was also less than in Q2. Compared with Q3 2013, prices dropped on the spot market fairly moderately, i.e. about 7 per cent for the system price. Thus far this year, the price drop has been substantial, with the system price down by 18 per cent and the area prices in southern Norway down by about 25 per cent.

YTD revenues at end-September 2014 came to MNOK 1 929, a drop of 16 per cent from 2013. As a result of price hedging, the Group has obtained sales prices higher than the prices on the spot market. The actual YTD selling price was 0.268 NOK per kWh, which was 11 per cent higher than the system price and 21 per cent higher than the area prices in southern Norway. Despite good results compared with market prices, the actual YTD selling price has dropped by 18 per cent year-on-year.

The EBITA at end-September came to MNOK 1 110, down 27 per cent from 2013. The net profit after tax was MNOK 403, corresponding to a decline of 35 per cent compared with last year.

The Group's YTD power production aggregated 7 201 GWh at end-September 2014. In the same months of 2013, power production totalled 7 058 GWh. Production came to 2 177 GWh in Q3 2014, compared with 1 936 GWh a year ago.

In Q3, the decision was taken to develop the Rosten Power Plant in the River Gudbrandsdalslågen. Calculated production is 192 GWh/year. E-CO Energi has a 44 per cent stake in the power plant, and completion is scheduled for 2018.

The filling ratio was nearly normal in E-CO Energi's reservoirs at the beginning of Q4 2014 and production is expected to be above normal for the year as a whole.

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

 

YTD Q3 2014

YTD Q3 2013

2013

Operating revenues

1 929

2 296

3 228

Operating expenses

(819)

(774)

(1 075)

EBITA

1 110

1 522

2 153

Earnings before taxes

907

1 340

1 914

Net profit

403

622

876

Equity

6 493

6 586

6 090

Equity and liabilities

16 066

16 423

16 269

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

Contacts:

Tore Olaf Rimmereid

President and CEO

+47 241 16910/+47 909 92515

Stine Rolstad Brenna

CFO

+47 241 16915/+47 928 03456

Torill Berdal

Vice President, HR and Communications

+47 241 16590/+47 952 24373