Hafslund Q1 2009: Efficient operations secure solid result

Hafslund posted a solid result in the first quarter of 2009, due in
particular to high energy sales as a result of the cold winter. "The
Group's underlying operational performance was strong," remarked
President and CEO Christian Berg.
 
Hafslund posted an operating profit of NOK 483 million and generated
a cash flow from operations of NOK 1,238 million in the first quarter
of the year.
 
Satisfactory power prices
"We are very satisfied with underlying operations in all parts of the
Group in the first quarter. The result was boosted by high
electricity sales, satisfactory power prices and high district
heating production, remarked Berg.
 
However, Hafslund's power production was 35 per cent lower than in
the corresponding prior-year period, and 13 per cent lower than
normal for the quarter. This is primarily attributable to
lower-than-normal precipitation and inflow levels.
 
Focus on renewables
"Hafslund shall help meet future demand for renewable energy, where
the EU's 20-20-20 climate target will serve as a guide. We are
currently implementing a number of major projects within hydropower,
heat production, distribution and other renewable energy," stresses
Berg.
 
A new power plant which will generate sufficient new power production
to cover the needs of 5,000 households will be completed at
Kykkelsrud in Askim in 2011. In Sarpsborg, Hafslund is constructing a
waste-to-energy facility that will replace 20,000 tonnes of heavy oil
usage and cut Norwegian chemicals company Borregaard's greenhouse gas
emissions by more than 50,000 tonnes. Hafslund is also constructing a
pellets factory that will be the largest of its kind in Europe, with
a production capacity of 450,000 tonnes of wood pellets at Averøy.
The pellets will be used for industrial purposes and in coal-fired
power plants.
 
Operating result
Operating revenues rose by NOK 598 million compared with the first
quarter of 2008. The increase is primarily attributable to increased
sales of electricity and district heating.
 
The operating profit in the first quarter totalled NOK 483 million,
compared with NOK 581 million in the corresponding prior-year period.
The result includes non-recurring effects relating to the dilution of
the shareholding in Infratek ASA, and changes in value of foreign
currency and interest rate derivatives totalling NOK 75 million. The
operating result in the first quarter of 2008 was boosted by a profit
of NOK 188 million from the sale of One Call AS.
 
The profit after tax for the first quarter was NOK 210 million. This
corresponds to an EPS figure of NOK 1.07.
 
The Hafslund Group has a strong balance sheet with an equity ratio of
40 per cent, and a robust financing structure with long-term
committed drawdown facilities.
 
The cash flow from operations was NOK 1,238 million, an increase of
NOK 110 million compared with the corresponding prior-year period. At
the end of the quarter the Group's net interest-bearing debt amounted
to NOK 10.5 billion, which represents a reduction of NOK 0.9 billion
during the quarter.
 
For further information:
 
Group Executive Vice President Finance (CFO), Gunnar Gjørtz
Mob: +47 92 21 72 00
E-mail: gunnar.gjortz@hafslund.no
 
Group Executive Vice President , Communications and Corporate
Responsibility (CR), Karen Onsager
Mob: +47 92 08 70 07
E-mail: karen.onsager@hafslund.no
 
Investor Relations Officer (IRO) Lars Ove Johansen
Mob: +47 99 29 14 60
E-mail: lars.ove.johansen@hafslund.no
 
Hafslund ASA
Oslo, 6th May 2009
 
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