E-CO Energi - high production volume in Q1


Press release 04/15

E-CO reported a profit after tax of MNOK 305 in Q1 2015, compared with MNOK 285 in Q1 2014. The actual selling price was lower than last year, but a larger production volume more than offset the decline in prices. Hedging had a positive effect, entailing that the selling price was 13 per cent higher than the area price in southern Norway.

"We are satisfied with the result. Low prices were largely compensated by the production volume being well above normal for the quarter. The high production volume is due to smooth operations and full availability at all the power plants", reports Tore Olaf Rimmereid, president and CEO of E-CO Energi.

Power prices were low in Q1 2015 due to an extremely mild winter, a good inflow, increasing production from renewables and continued low prices on fossil fuels and CO2 trading permits. The average system price was 0.246 NOK/kWh in Q1 2015, compared with 0.252 NOK/kWh last year. The area price in southern Norway was 0.238 NOK /kWh, compared with 0.247 NOK/kWh in Q1 2014. Forward prices for the rest of 2015 and for next year dropped by 0.02 to 0.04 NOK/kWh during the quarter.

Operating revenues aggregated MNOK 954 in Q1 2015, which is a rise of MNOK 29 relative to the corresponding reporting period in 2014. The increase is ascribable to a higher volume of power production year-on-year. The average selling price during the quarter was 0.27 NOK/kWh, which is 0.03 NOK/kWh lower than last year. Hedging entailed that the Group obtained a selling price that was 13 per cent higher than the area price in southern Norway.

Operating expenses came to MNOK 296, which is on a par with last year. The Q1 operating profit improved by 5 per cent, i.e. from MNOK 626 last year to MNOK 658 this year.

The Q1 profit after tax came to MNOK 305, as against MNOK 285 last year, equivalent to an increase of 7 per cent.

The Group's power production totalled 3 508 GWh in Q1 this year. The Group produced 3 105 GWh of power in Q1 2014.

Investments totalled MNOK 62 in Q1 2015, compared with MNOK 24 a year earlier. The largest ongoing investment project is the Rosten Power Plant in Gudbrandsdalen, which was commenced last autumn. E-CO Energi owns a 44 per cent stake.

Assuming normal precipitation for the rest of the year, E-CO Energi expected power production for the year as a whole to be higher than normal production.

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


Q1 2015

Q1 2014


Operating revenues



2 863

Operating expenses



(1 165)

Operating profit



1 698

Profit before taxes



1 491

Profit after taxes





6 368

6 375

6 063

Equity and liabilities

16 846

17 027

16 064

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



Tore Olaf Rimmereid

President and CEO

+47 241 16910/+47 909 92515

Stine Rolstad Brenna


+47 241 16915/+47 928 03456

Torill Berdal

Vice President, HR and Communications

+47 241 16590/+47 952 24373