E-CO Energi: Satisfactory net profit for 2014

10.03.15

E-CO Energi earned satisfactory results in 2014. Consolidated operating revenues totalled MNOK 2 863, compared with MNOK 3 228 in 2013. The average selling price was 0.271 NOK/kWh, compared with 0.323 NOK/kWh in 2013. The net profit for the year was MNOK 713, compared with MNOK 876 last year. The Board of Directors proposes a dividend of MNOK 740.

"In the light of what the power market was like in 2014, we are well satisfied with the result. Smooth operations and control of production were important factors. In the long run, we see a significant energy glut building up in the Nordic market. This may put further pressure on prices and have an impact on E-CO Energi's bottom line'', reports President and CEO Tore Olaf Rimmereid.

2014 was a mild and relatively wet year. Combined with lower prices for fossil fuels and declining power prices on the Continent, this translated into low power prices in the Nordic market relative to 2013. Good production planning and successful hedging helped ensure that E-CO Energi obtained an average selling price that was 19 per cent higher than the weighted hourly spot price for Oslo (NO1) and Bergen (NO1 and NO5). The average selling price for 2014 was 0.271 NOK/kWh, as against 0.323 NOK/kWh in 2013. The Group's annual production in 2014 aggregated 10 579 GWh, compared with 10 045 GWh in 2013. E-CO Energi's reservoir storage was at normal levels at both the beginning and the end of the year.

E-CO Energi's operating revenues came to MNOK 2 863 in 2014, down MNOK 365 from the year before. The decline is due to lower selling prices. Higher power production and a significantly higher contribution from financial power and currency hedging have helped curb the effect of lower spot prices for power, compared with 2013.

Operating expenses came to MNOK 1 165, up MNOK 90 from 2013. The increase can generally be ascribed to higher costs for feeding power into the central grid due to higher fixed rates and higher marginal loss rates. The Group earned a gain for accounting purposes of MNOK 49 from the sale of Norsk Gronnkraft in 2014. EBT (earnings before tax) came to MNOK 1 491 in 2014, compared with MNOK 1 914 last year. Taxes totalled MNOK 778, compared with MNOK 1 038 in 2013. The tax rate dropped from 54 per cent in 2013 to 52 per cent in 2014.

The net profit for the year added up to MNOK 713 in 2014, compared with MNOK 876 in 2013, a decline in profits of MNOK 163.

Investments in tangible fixed assets added up to MNOK 236, as against MNOK 343 in 2013. Investments in 2014 were primarily maintenance-related. Oppland Energi started the construction of the Rosten Power Plant in Gudbrandsdalen in autumn 2014. Estimated production for Rosten will come to about 200 GWh, of which E-CO Energi's share will be about 90 GWh.

The cash flow from operating activities came to MNOK 694, compared with MNOK 1 346 in 2013. Long-term loans totalling MNOK 546 were raised from Japanese investors and on the Norwegian bond market. The equity ratio was 38 per cent at year end, which was on a par with year-end 2013.

For the 2014 fiscal year, E-CO Energi proposes paying a dividend of MNOK 740 to its owner, the City of Oslo.

Contacts:

Tore Olaf Rimmereid

President

+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

 

E-CO Energi is one of Norway's leading energy groups. E-CO owns and operates power plants throughout southern Norway and is the country's second largest power producer.The Group has stakes in Oppland Energi AS, Opplandskraft DA, Vinstra Kraftselskap DA and Embretsfosskraftverkene DA.