Record-high power production led to satisfactory Q1 performance for E-CO Energi


Press release 02/16

E-CO reported a profit after tax of MNOK 289 in Q1 2016, compared with MNOK 305 in Q1 2015. High power production largely offset low power prices. Good production management helped the Group obtain a selling price was 11 per cent higher than the area price.

A cold snap in January raised spot prices that month. However, mild weather in February and March brought prices down again. The average prices for the quarter were lower than last year.

"We have exploited our production capacity well during a quarter in which power prices have occasionally been high. We are satisfied with our Q1 performance in the light of the generally low price level in today's power market", comments President and CEO Tore Olaf Rimmereid.

He adds that he would prefer to see less of a gap between the price areas. In Q1, the price in NO5 where E-CO has two-thirds of its power production, was 0.015 NOK/kWh lower than in NO1, where all of the Group's power production was located prior to the enlargement of NO5 in 2013.

The average system price was 0.226 NOK/kWh in Q1 2016, compared with 0.246 NOK/kWh last year. The area price, weighted relative to the distribution of E-CO Energi's power production (ca. 2/3 in price area NO5 (Bergen) and 1/3 in NO1 (Oslo)), was 0.217 NOK/kWh, compared with 0.238 NOK/kWh in Q1 2015. The Group obtained an average selling price of 0.24 NOK/kWh, which was 11 per cent higher than the weighted area price. The selling price was 0.03 NOK/kWh lower than in Q1 2015.

Operating revenues aggregated MNOK 902 in Q1 2016, which is down MNOK 52 relative to the corresponding reporting period last year. The decline is due to lower selling prices. Higher power production largely offset the decline in prices.

Operating expenses came to MNOK 294, which is on a par with last year. The operating profit was MNOK 608, compared with MNOK 658 in Q1 2015.

The Q1 profit after tax amounted to MNOK 289, as against MNOK 305 last year, translating into a reduction of 5 per cent.

The Group's power production totalled 3 744 GWh in Q1 this year, the highest quarterly production in the history of the Group. The Group produced 3 508 GWh of power in Q1 2015.

Investments totalled MNOK 68 in Q1 2016, compared with MNOK 62 a year earlier. The largest ongoing investment project is the Rosten Power Plant in Gudbrandsdalen, scheduled for completion in 2018. E-CO Energi owns a 44 per cent stake.

Based on current forward prices for the rest of 2016, and providing precipitation is normal for the rest of the year, E-CO Energi expects a lower net profit for the year than in 2015.

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


Q1 2016

Q1 2015


Operating revenues



2 511

Operating expenses



(1 164)

Operating profit



1 698

Profit before taxes



1 116

Profit after taxes





6 200

6 368

5 911

Equity and liabilities

16 174

16 846

15 636

*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

Per Storm-Mathisen

Communication manager

24 11 65 91 /
982 55 406