quarterly report

Transcription

1 quarterly report

2 highlights as at the 4th quarter 2011 The Group s operating revenues in 2011 were NOK million (9 345) according to IFRS. The main reasons for the increase were higher revenues from the Group s retail business and gains on electricity derivatives. Profit after tax amounted to NOK (751) million. Adjusted for unrealised gains and losses, profit after tax for 2011 was NOK 533 (866) million. Based on Norwegian generally accepted accounting principles (NGAAP), the controlling interest s share of the profit after tax was NOK 450 million. That is the figure used to calculate the dividend paid by Agder Energi AS. At the end of 2011 Agder Energi AS had NOK 837 million in distributable reserves before appropriations. Operating profit according to IFRS was NOK (1 634) million 1), while pre-tax profit was NOK million (1 380). Adjusted for unrealised gains and losses the Group s operating profit was NOK (1 988) million, and it made a pre-tax profit of NOK (1 531) million. Agder Energi s operations expose it to risk from changes in electricity prices, electricity generation levels, exchange rates and interest rates. In order to hedge and manage cash flows in these areas, the company uses hedging instruments. Unrealised gains and losses are measured through profit and loss. Unrealised gains and losses on electricity, currency and interest rate contracts can have a big impact on reported profits. In 2011, gains and losses contributed NOK 873 million to pre-tax profit, compared with NOK -151 million in In 2011, the amount of hydroelectric power generated was GWh (6 586 GWh), which is the second lowest amount in Agder Energi s history. The Group expects to generate approximately TWh in a normal year. In 2011, the average spot price (in the NO2 region) was 36.0 øre/kwh (40.7 øre/kwh), down 12% on last year. The Group s tax expense was NOK (623) million, giving an effective tax rate of 46.6% (45.1%). Agder Energi owns 16.7% of the shares in the telecoms company Ventelo. In December, Agder Energi and the other owners agreed to sell the company to the private equity fund EQT. The shares will be transferred in the first quarter In December the necessary regulations were put in place to allow the introduction of a common green power market in Sweden and Norway. Agder Energi is well-positioned to benefit from this, with just under 700 GWh of new hydropower generation under construction or in the planning stage. Key financial figures Driftsinntekter Operating revenues NOK millions mill. kr EBITDA NOK millions mill. kr EBITDA Adjusted justert* EBITDA* NOK millions mill. kr Driftsresultat Operating profit/loss NOK millions mill. kr Resultat Profit/loss før before skatt tax NOK millions mill. kr Resultat Profit/loss etter after skatt tax NOK millions mill. kr Driftsmargin Operating margin % 23,2 17,5 27,4 Egenkapitalavkastning Return on equity % 33,7 20,8 47,4 Avkastning Return on capital sysselsatt employed kapital % 23,4 16,4 33,6 Totalkapitalavkastning Return on total assets % 15,9 10,9 20,2 Egenkapitalandel Equity ratio % 22,6 20,9 25,5 Netto interest-bearing rentebærende liabilities/ebitda gjeld/ebitda 2,1 3,6 2,2 Netto interest-bearing rentebærende liabilities/rolling gjeld/rullerende adjusted 12 måneders EBITDA** justert** 3,2 3,1 2,2 * Adjusted EBITDA is calculated on a rolling 12-month basis and is corrected for unrealised gains and losses on electricity contracts. ** Rolling adjusted EBITDA comprises EBITDA for the last four quarters corrected for unrealised gains and losses on electricity contracts. 1) Agder Energi s consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS). The same accounting principles and calculation methods have been applied as for the annual financial statements for The accounts have not been audited. The financial statements of the parent company and subsidiaries adhere to Norwegian generally accepted accounting principles (NGAAP), and the business areas are presented in accordance with NGAAP in the interim report. 2 AGDER ENERGI årsrapport 2010 quarterly report 4 th quarter

3 Operating profit for the quarter Accumulated operating profit/loss NOK million NOK million Mill. kr st quarter 1. kv. 2 nd 2. quarter kv. 3 rd quarter 3.kv. 4 th 4. quarter kv. 1 st 1. quarter kv. 2 nd 2. quarter kv. 3 rd quarter 3.kv. 4 th quarter 4. kv The Energy business area In 2011, this business area, which consists of the company Agder Energi Produksjon, made an operating profit of NOK (1 541) million. In 2011, the amount of hydroelectric power generated was GWh (6 586 GWh), 16% less than the Group would expect to generate in a normal year. The main reason for the decline was low hydrological reserves in the first half of the year. In the fourth quarter, the company generated GWh (2 067 GWh). For 2011 as a whole, precipitation levels were roughly normal, but there were big variations between quarters. Hydrological resources at the end of the year were significantly higher than normal, and significantly higher than at the end of Electricity prices in 2011 were lower than in 2010, with the average price in the NO2 region being 36.0 øre/kwh (40.7 øre/kwh), down 12%. This was mainly due to a fall in prices in the second half of the year, and in the fourth quarter prices in our region were 26.0 øre/kwh (46.9 øre/kwh), down 44%. The NOK 296 million decline in operating profit was due to a smaller contribution from net energy sales, reflecting lower achieved prices than in The company s tax expense was NOK 762 (625) million, which meant that its effective tax rate was 60.9% (44.2%). The main reason for the higher tax expense was a NOK 214 million increase in estimated deferred resource rent tax. Profit after tax amounted to NOK 490 (790) million. The company invested NOK 222 (185) million in 2011, most of which related to reinvestments in projects. The parent company also sold its ownership interest in the wind power company Statkraft Agder Energi Vind DA to Agder Energi Produksjon. The Network business area This business area, which consists of the company Agder Energi Nett, had NOK (1 418) million of operating revenues in 2011, and achieved an operating profit of NOK 144 (386) million. The fall in profit was expected, and was mainly due to high revenues in 2010 as a result of compensation for high pension expenses and high KILE revenues (compensation for energy not supplied) in In addition, there was a temporary general increase in the income cap applied to grid operators in In 2011, the company invested NOK 348 (311) million, around half of which relates to new investments. In the fourth quarter, Frikstad substation in Kristiansand was commissioned after the completion of the NOK 30 million project to build it. The Market business area This business area comprises LOS, Sopran and Agder Energi Varme, and in 2011 it achieved an operating profit of NOK 93 million (NOK 112 million). In a highly competitive environment, LOS quarterly report 4 th quarter

4 maintained its share of the retail electricity supply market in Agder. Meanwhile, it increased the volume it supplied to the business market compared with In total, it supplied 9.8 TWh (8.7 TWh) to customers in The main reason for the increase in volumes was the acquisition of Statoil s electricity business in autumn In 2011, Agder Energi Varme made an operating profit of NOK 12 (12) million. It supplied 107 GWh (120 GWh) of heating and cooling energy, after a 28% decline to 33 MWh (46 MWh) in the fourth quarter, caused by large temperature variations. The underlying growth in Agder Energi Varme s customer base was around 10% in The business area invested NOK 65 (114) million over the course of the year. The debt collection company Sopran made an operating profit of NOK 8 (6) million in Profit rose as a result of the company doing more business. The Group s fibreoptic cable business in Agder and Vestfold has comprised the companies LOS Bynett, Bynett Privat and LOS Bynett Vestfold. An agreement has been signed to sell LOS Bynett and Bynett Privat to Telenor. The sale is contingent upon the approval of the competition authorities, and the Norwegian Competition Authority has temporarily blocked the transaction. The sale has not been included in the 2011 profit and loss account. The broadband business made an operating profit of NOK 9 (2) million in In the income statement and on the balance sheet, LOS Bynett and Bynett Privat are classified as discontinued operations. Up until August 2011, Nettkonsult was also part of this business area, but since September 2011 its results have not been included in Agder Energi s consolidated accounts. This is due to the sale of 49% of the shares in Nettkonsult to the Swedish enterprise Rejlers, and the shareholder agreement between the parties. Of the business area s NOK 93 (112) million operating profit, Nettkonsult contributed NOK -4 (11) million. The Contracting business area This business area, which consists of Otera, made an operating profit of NOK 23 (16) million in Turnover rose by NOK 189 million to NOK (1 251) million. The order book was satisfactory, and higher than at the end of Although the market was challenging in 2011, it is now showing signs of improvement. Moreover, Otera has undergone a major restructuring, which has involved a new management team laying the foundations for a new business culture, focused on profitable development. Cash flows and capital adequacy. Cash flow from operating activities rose to NOK (226) million in The increase over 2010 was largely due to a reduction in working capital and in taxes paid. A reduction in trade receivables at LOS was an important contributing factor to the reduction in working capital. In total the Group invested NOK 747 million (NOK 821 million) in Around 90% of the investments were in the Energy and Network business areas, as well as at Agder Energi Varme. Net financial losses for the year were NOK -306 (-254) million, a deterioration of NOK -52 million over the previous year. The interest expense on the Group s debt portfolio rose to NOK 289 (243) million, due to an increase in interest-bearing liabilities. The Group made a realised exchange rate gain on currency contracts of NOK 116 million (loss of NOK 56 million), whereas it made an unrealised loss on the value of interest rate swaps and currency contracts of NOK 111 million (gain of NOK 203 million). Associates contributed a profit of NOK 10 million (loss of NOK 27 million). The Group wrote down the value of its financial assets by NOK 10 (100) million. Interest-bearing liabilities averaged NOK (6 520) million. The average interest rate on the Group s debt portfolio was 4.5% (4.3%). The Group had a liquidity buffer of NOK (1 297) million at the close of 2011, consisting of unused credit facilities and unrestricted liquid assets. Profit after tax for 2011 was boosted by around NOK 60 million by the sale of the shares in Nettkonsult and of the Group s ownership interest in the NorGer interconnector. NOK 14 million of this was the result of a positive revaluation of the Group s remaining 51% interest in Nettkonsult. In December 2011, Agder Energi agreed to sell its 16.7% ownership interest in Ventelo to EQT. The completion of the quarterly report 4 th quarter

5 transaction is subject to the approval of the competition authorities. The agreement did not have any impact on the 2011 profit and loss account. The shares will be transferred in the first quarter At the end of 2011 Agder Energi AS had NOK 837 million in distributable reserves before appropriations. Operations and working environment At the close of 2011, the Group had (1 692) full-time and temporary employees, representing (1 647) full-time equivalents. The sickness absence rate in the reporting period was 4.7% (4.5%). There were 45 (48) occupational accidents resulting in injury recorded in the Group in Of the accidents, 22 (15) resulted in total lost time of 148 (83) days. 5 (5) of these accidents occurred in the fourth quarter, and resulted in a total of 43 (42) days being lost. The accident figures are equivalent to a lost time injury frequency (number of LTIs per million work hours) of 7.9 (5.1), a total injury frequency (number of injuries, whether or not they resulted in lost time, per million work hours) of 16.2 (16.2) and an injury severity rate (number of days lost per million work hours) of 53.3 (28). Throughout the Group, efforts are being made to improve our HSE performance. Outlook At the end of the year, the Group s hydrological resources (water and snow) were significantly above normal. Assuming normal precipitation levels, Agder Energi expects to generate more hydroelectric power in 2012 than in In the fourth quarter, futures prices for electricity fell steeply for the years , with price expectations for 2012 falling particularly sharply. Over the past quarter, the Group increased the amount of electricity that it sold through future contracts, and there is now a large unrealised gain on the value of these contracts. The Group is therefore in a good position to cope with the fall in prices in the futures market. Agder Energi expects higher revenues from power generation in 2012 than in It is expected that the introduction of a common green power market in Sweden and Norway on 1 January 2012 will lead Agder Energi to increase its future investments in hydroelectric and wind power in Norway. Kristiansand, 14 February 2012 The Board of Directors of Agder Energi AS quarterly report 4 th quarter

6 income statement q (Amounts in NOK millions) Energy Energisalg sales Transmission Overføringsinntekter revenues Other Andre operating driftsinntekter revenues Unrealised Urealiserte gains verdiendringer and losses energikontrakter energy contracts Total Sum driftsinntekter operating revenues Energy Energikjøp purchases Transmission Overføringskostnader expenses Other Andre raw varekostnader materials and consumables used Employee Lønnskostnader benefits Depreciation Avskrivninger and og write-downs nedskrivninger Property Eiendomsskatt taxes and og konsesjonsavgifter licence fees Other Andre operating driftskostnader expenses Total Sum driftskostnader operating expenses Operating Driftsresultat profit Share Resultat of net fra income tilknyttede from associates selskaper and og felleskontrollerte jointly controlled entities foretak Finance Finansinntekter income Unrealised Urealiserte gains verdiendringer and losses on valuta currency og and rente interest rate contracts Finance Finanskostnader costs Netto finance finansposter income/costs Profit Resultat before før skattekostnad tax Income Overskuddsskatt tax Resource Grunnrenteskatt rent tax Tax Skattekostnad expense Net Resultat income etter frome skatt continued fra videreført operations virksomhet Net Resultat income etter from skatt discontinued fra ikke videreført operations virksomhet Net Resultat income etter skattekostnad Of Herav which minoritetens attributable andel to non-controlling interests Of Herav which majoritetens attributable andel to controlling interest Earnings Resultat pr. per aksje share (kr) (NOK) Earnings Resultat pr. per aksje share, utvannet diluted (NOK) (kr) Utvidet resultatregnskap statement of comprehensive income Net Resultat income etter skattekostnad Actuarial Estimatavvik gains pensjoner and losses on pensions Cash Kontantstrømsikring flow hedges Tax Skattevirkning effect on actuarial estimatavvik gains and pensjoner losses and og cash kontantstrømsikring flow hedges Comprehensive Totalresultat income Of Herav which minoritetens attributable andel to non-controlling interests Of Herav which majoritetens attributable andel to controlling interest quarterly report 4 th quarter

7 balance sheet (Amounts in NOK millions) Deferred Utsatt skattefordel tax assets Intangible Immaterielle assets eiendeler Varige Property, driftsmidler plant and equipment Investeringer Investments in i associates tilknyttede and selskaper jointly controlled og felleskontrollerte entities foretak Other Andre non-current finansielle anleggsmidler financial assets Total Sum anleggsmidler non-current assets Inventories Varelager Receivables Fordringer Derivatives Derivater Cash Betalingsmidler and cash equivalents Total Sum omløpsmidler current assets Assets Eiendeler related ikke videreført to discontinued virksomhet operations TOTAL SUM EIENDELER ASSETS Paid-in Innskutt capital egenkapital Retained Annen egenkapital earnings Non-controlling Minoritetsinteresser interests Total Sum egenkapital equity Deferred Utsatt skatt tax Provisions Avsetning for forpliktelser Non-current Langsiktig rentebærende interest-bearing gjeld liabilities Total Sum langsiktig non-current gjeld liabilities Current Kortsiktig interest-bearing rentebærende liabilities gjeld Tax Betalbar payable skatt Derivatives Derivater Other Annen current kortsiktig non-interest-bearing rentefri gjeld liabilities Total Sum kortsiktig current liabilities gjeld Liabilities Gjeld ikke related videreført to discontinued virksomhet operations TOTAL SUM EGENKAPITAL EQUITY AND OG LIABILITIES GJELD quarterly report 4 th quarter

8 cash flow statement q (Amounts in NOK millions) Cash Kontantstrøm flow from fra operating driften activities Profit Resultat before før skatt tax from continued operations Profit Avskrivninger before tax og from nedskrivninger discontinued operations Depreciation and write-downs Unrealised Urealiserte gains verdiendringer and losses energi-, on energy, valuta- currency og rentekontrakter and interest rate contracts Resultat Share of fra net tilknyttede income from selskaper associates og and felleskontrollerte jointly controlled foretak entities Tax Betalte paid skatter Changes Endring netto in driftskapital working capital, m.v. etc Netto cash kontantstrøm provided by tilført operating fra driften activities Investment Investeringsaktiviteter activities Purchase Investeringer of property, i varige driftsmidler plant, equipment og immaterielle and intangible eiendeler assets Purchase Kjøp av virksomhet/finansielle of businesses/financial investeringer assets Netto change endring loans i utlån Sale Salg of av property, varige driftsmidler plant, equipment og immaterielle and intangible eiendeler assets Sale Salg of av businesses/financial virksomhet/finansielle assets investeringer Netto cash kontantstrøm used in investing benyttet activities til investeringsaktiviteter Financing Finansieringsaktiviteter activities New Opptak long-term av ny langsiktig borrowings gjeld Repayment 2 290Nedbetaling of long-term av langsiktig borrowings gjeld Netto change endring current kortsiktig liabilities gjeld Dividends Betalt utbytte paid Netto cash kontantstrøm used in financing benyttet activities til finansieringsaktiviteter Netto change endring cash i betalingsmidler and cash equivalents Cash Betalingsmidler and cash equivalents ved periodens at start begynnelse of period Cash Betalingsmidler and cash equivalents ved periodens at end utgang of period quarterly report 4 th quarter

9 statement of changes in equity Paid-in Retained Total for Non- Total capital earnings controlling controlling equity (Amounts in NOK millions) interests interest Egenkapital Equity at 1 Jan Comprehensive Årets totalresultat income Transfer Kapitalnedsettelse from paid - in capital Dividends Utbetalt utbytte paid Changes Endring som due følge to acquisitions, av oppkjøp, disposals, salg av virksomhet, etc. mv Equity Egenkapital at 31 Dec Comprehensive Totalresultat hittil income i år Dividends Utbetalt utbytte paid Changes Endring som due følge to acquisitions, av oppkjøp, disposals, salg av virksomhet, etc. mv Equity Egenkapital 31. Dec business areas Operating profit/loss under NGAAP q (Amounts in NOK millions) Energy Network Market Contracting Parent company/other/eliminations Group (NGAAP) Net income under NGAAP q (Amounts in NOK millions) Energy Network Market Contracting Parent company/other/eliminations Group (NGAAP) Of which attributable to non-controlling interests Of which attributable to controlling interests quarterly report 4 th quarter

10 Agder Energi P.O.Box 603 Lundsiden, 4606 Kristiansand Visiting address (head office): Kjøita 18, 4630 Kristiansand Tel. no.: Organisation number: NO Design/prosjektledelse: Gevir - Foto: Arild Danielsen/Kjell Inge Søreidew