E-CO Energi reports a strong first half

E-CO Energi earned a consolidated net profit in the first half of 2018 (H1) of MNOK 595, up MNOK 168 from H1 2017. The improvement in performance must generally be seen in the light of higher selling prices and the acquisition of Hafslund Produksjon in August 2017. Adjusted for unrealised results on price hedging contracts the net profit was MNOK 796, an increase of MNOK 418 from H1 last year.

“The profit for H1 2018 was very satisfactory. Smooth operations and high availability of the facilities have allowed us to take advantage of the
significant price rise we have seen in the markets”, reports President and CEO Tore Olaf Rimmereid.

Operating revenue came to MNOK 2 269 in H1, up MNOK 726 year-on-year. The profit was driven by positive contributions from higher power production, primarily owing to the acquisition of Hafslund Produksjon in August 2017 and higher selling prices in H1 2018 compared with the same months of 2017. Negative proceeds from the price hedging contracts pulled in the other direction.

The weighted area price in H1 2018 was 0.368 NOK/kWh, reflecting an increase of 33 per cent from H1 2017. In H1 2018, the average actual selling price was 0.361 NOK/kWh, a rise of 24 per cent from H1 2017.

At 30 June 2018, the Group’s power production totalled 7 171 GWh, which was 1 726 GWh more than in H1 2017. A total of 1 411 GWh of the increase was produced by Hafslund Produksjon’s power plants.

Operating expenses came to MNOK 697 in H1, up MNOK 122 year-on-year. The rise in costs is primarily due to the acquisition of Hafslund Produksjon in August 2017.

Net financial expenses during the period were MNOK 159, an increase of MNOK 77 from the same months of 2017. The increase was generally related to funding the acquisition of Hafslund Produksjon.

Investments aggregated MNOK 258 in H1. 80 per cent of that amount refers to investments in the development of the new Rosten, Nedre Otta and Vamma 12 power plants.

On 20 June 2018, the City of Oslo resolved to combine Hafslund and E-CO Energi into a new wholly-owned parent company. Hafslund E-CO AS was established on 4 July 2018 with the subsidiaries Hafslund AS and E-CO Energi Holding AS. Finn Bjørn Ruyter was appointed CEO of Hafslund E-CO. The funding and debt in the new group will be continued through the respective subsidiaries. The business combination does not entail changes in the key financial figures for Hafslund AS and E-CO Energi Holding AS.

As from 1 September, Tore Olaf Rimmereid will go move into a position as Deputy CEO and SVP Corporate Strategy at Hafslund E-CO. From the same date, Alf
Inge Berget will take over as President and CEO of E-CO Energi.

Key figures – E-CO Energi (amounts in MNOK):    
  H1 2018 H1 2017 2017
Operating revenue 2 269 1 543 3 592
Operating expenses -697 -575 -1 357
Operating profit/(loss) 1 571 968 2 235
Profit/loss before tax 1 413 886 1 987
Consolidated net profit 595 427 1 038
Equity 12 290 7 073 12 364
Equity and liabilities 29 959 19 945 30 458


Tore Olaf Rimmereid President and CEO +47 909 92515
Morten J. Hansen Acting CFO +47 908 28577
Print out