"E-CO Energi turned in a strong performance in 2016. The Group managed its production resources well, with high production when prices were good", reports Tore Olaf Rimmereid, president and CEO of E-CO Energi.
E-CO Energi earned higher operating revenues and a stronger profit in 2016, compared with the year before. The improvement is mainly due to higher spot prices. Contributions from financial power and currency hedging were significantly lower than in 2015, but successful production management helped the Group to nevertheless obtain a higher selling price than the weighted hourly spot price for 2016.
Operating revenues aggregated MNOK 2 723, up MNOK 212 from 2015. The main explanation for the increase is higher spot prices, which climbed by an average of 33 per cent in the price areas in which E-CO has its power production (NO5 and NO1). The Group's selling price was 8 per cent higher than the average area price. In 2015, the sales price was 34 per cent higher as a result of contributions from price hedging. The boost in revenues was also fuelled by higher production. The Group's power production was 10 737 GWh, which was 176 GWh higher than in 2015.
Operating expenses were at the same level as the year before, so that the operating earnings of MNOK 1 559 were MNOK 212 higher than in 2015. Earnings before tax came to MNOK 1 340, up MNOK 224 year-on-year from 2015. Taxes increased from MNOK 583 in 2015 to MNOK 750 in 2016. Higher resource rent tax accounts for most of the increase.
The net profit for the year was MNOK 590 in 2016, an increase of MNOK 56.
Investments came to MNOK 335. In 2016, investments consisted of maintenance, as well as ongoing work at the new power plants at Rosten and Nedre Otta. Work on Rosten began in 2014 and completion is planned for 2018. Total production is estimated at 195 GWh, and E-CO Energi owns a 44 per cent stake. In Nedre Otta, construction began in 2016, and completion is planned for 2020. The power plant will have an estimated normal annual production of 315 GWh. E-CO Energi owns a 27 per cent stake.
E-CO's Board of Directors Energy proposes that a dividend of MNOK 610 be paid to the owner, Oslo Municipality.
The transition to IFRS and change in interim reporting:
As from the 2017 fiscal year, the Group will be converting to reporting routines pursuant to IFRS, the International Financial Reporting Standard, and switch from quarterly reporting to semi-annual reporting.
|(Amounts in MNOK)||2016||2015||2014|
|Operating revenues||2 723||2 511||2 863|
|Operating profit||1 559||1 347||1 698|
|Profit before taxes||1 340||1 116||1 491|
|Net profit for the year||590||533||713|
|Total assets||16 373||15 636||16 064|
|Subord. loan, Oslo Municipality||3 347||3 347||3 347|
|Equity||5 891||5 911||6 063|
|Cash and cash equivalents||1 069||349||608|
|Equity ratio||36 %||38 %||38 %|
|Net interest-bearing debt||7 081||7 268||6 924|
|Return on equity 1||10 %||9 %||12 %|
|Return on total assets 2||10 %||9 %||11 %|
|Cash flow from operating activities||1 213||689||694|
|EBITDA||1 837||1 621||1 971|
|EBITDA-margin 3||67 %||65 %||69 %|
|Number of employees||172||177||174|
|Power production (GWh) 4||10 737||10 561||10 579|
|1 Net profit/average equity|
|2 Ordinary earnings before taxes +
financial expenses/average total assets
|3 EBIT + amortisation/operating revenues|
|4 Production less share of production by associates|
Tore Olaf Rimmereid
President and CEO
+47 241 16910
Stine Rolstad Brenna
+47 928 03456
Vice President, HR and Communications
+47 241 16590