Satisfactory H1 performance for E-CO Energi

26.08.15

Press release 05/15

The profit after tax came to MNOK 350, up MNOK 51 from H1 2014. The increase is due to higher production. As a result of hedging, the actual selling price was 27 per cent higher than the area price in H1.

"The H1 profit is satisfactory in the light of the market situation", states President and CEO Tore Olaf Rimmereid.

The early half of 2015 was characterised by a mild winter and abundant precipitation. In May-June, temperatures were relatively cool, and the snow melted more slowly than usual. Much of the precipitation in the mountains fell as snow during this period. At the end of H1, reservoir levels were below normal, while snow levels were significantly above normal.

A mild winter and abundant precipitation contributed to low power prices in H1. The average area price in southern Norway in H1 2015 was 0.204 NOK/kWh, which was slightly lower year-on-year (0.207 NOK/kWh), and the lowest price since 2007. Hedging helped ensure that E-CO Energi obtained an average selling price of 0.26 NOK/kWh in H1, 27 per cent higher than the area price. In H1 2014, the average selling price was 0.266 NOK/kWh. The Group's power production totalled 5 235 GWh in H1 2015, compared with 5 024 GWh of power in H1 2014.

H1 operating revenues came to MNOK 1 379, up MNOK 56 year-on-year. The increase is primarily attributable to higher power production than last year. Operating expenses came to MNOK 578, compared with MNOK 568 in H1 2014. Most of the increase of MNOK 10 is ascribable to higher feed-in costs to Statnett. The operating profit was MNOK 801, reflecting growth of MNOK 46 year-on-year.

Net financial expenses in H1 came to MNOK 114, a decrease of MNOK 17 compared with H1 2014. The decline is due to lower interest rates on the Group's interest-bearing liabilities. Earnings before tax totalled MNOK 687, an increase of MNOK 63 from the early half of 2014. The profit after tax came to MNOK 350, marking an increase of MNOK 51 since last year.

Investments added up to MNOK 121 in H1. The largest investment project is the Rosten Power Plant in Gudbrandsdalen, where construction began last autumn. It is scheduled for completion in 2018. Otherwise, the investments were primarily in existing facilities.

Assuming precipitation will be normal for the rest of the year, production in 2015 will be slightly above normal. Based on the market's price expectations for the rest of the year, the net profit for 2015 is expected to be lower than in 2014.

Key figures* - E-CO Energi  (MNOK):

 

1 2015

H1 2014

2014

Operating revenues

1 379

1 323

2 863

Operating expenses

(578)

(568)

(1 165)

Operating profit

801

755

1 698

Profit before taxes

687

624

1 491

Profit after taxes

350

299

713

Equity

6 413

6 389

6 063

Equity and liabilities

15 615

15 818

16 064

*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