financial results q1 2018 · exit from offshore wind completed: large gains 30% share in dudgeon...
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FINANCIAL RESULTS Q1 2018
CEO Christian Rynning-Tønnesen
CFO Irene Egset
26 April 2018
Health, safety and environment
Health and safety - No serious injuries in Q1 - Top priority to continuously improve safety performance
Environment - No serious environmental incidents in Q1
2 1TRI rate (12 months rolling): Total recordable injuries per million hours worked
0
2
4
6
8
10
2018 2017 2016
TRI-rate1
Highlights in Q1
Record high hydropower generation Underlying EBIT of NOK 5962 million, up NOK 1972 million Performance improvement programme realised NOK 480 million so far Large gain from divestment of Dudgeon offshore wind farm Successful listing of Fjordkraft Strong result: Net profit amounting to NOK 10282 million, up NOK 7534 million
3
Bordalsvatn
Cost reductions from the Performance Improvement Programme
4
480
800
320
Remaining Realised Target cost reduction
Estimated cost savings 2016-2018
Exit from offshore wind completed: Large gains
30% share in Dudgeon divested with a gain of NOK 5.1 billion
Statkraft’s strategy to exit from offshore wind resulted in total recognised gains amounting to NOK 8.7 billion in addition to contributions from holding period
5
Sheringham Shoal
Successful listing of Fjordkraft
Statkraft divested its shares through the Initial Public Offering (IPO)
Statkraft’s subsidiary Skagerak Energi and associated company BKK continue as investors in Fjordkraft after the listing
Gain amounting to NOK 1.7 billion
6
Outlook
Robust earnings and strengthened financial position: - Europe’s largest reservoir capacity and flexible power plants - Long-term contracts contribute to stabilising revenues and net profit - Ongoing performance improvement programme strengthens competitiveness - Divestments strengthen financial solidity
New renewable investments in hydro-, wind- and solar power
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Visualisation of a wind park at Fosen
NOK million Q1 2018 Q1 2017 The year 2017
Net operating revenues and other income 8 884 6 972 23 350 Operating profit/loss (EBIT) underlying 5 962 3 990 10 824 Net profit 10 282 2 748 11 707
First quarter 2018:
- Nordic prices measured in EUR up 24% Q-on-Q
- Overall generation up 23% Q-on-Q
Net profit impacted by gains from divestments of offshore wind asset and listing of Fjordkraft
Key figures
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Price drivers and the German power market
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Gas, NBP/TTF (EUR/MWh) Coal, ARA (USD/t) CO2, EUA (EUR/t)
Q1 2018 vs. Q1 2017
Coal, CO2 and gas prices increased
German power prices down by 14% - Mainly related to higher nuclear and
wind power generation
German power prices (EEX base)
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15
20
25
30
35
40
45
-14% 35,6
Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 2015 2016 2017 2018
Average quarterly price EUR/MWh
0
5
10
15
20
25
30
15121603160616091612170317061709171218030
2
4
6
8
10
12
14
1512 1603 1606 1609 1612 1703 1706 1709 1712 18030
5
10
15
20
25
30
1512 1603 1606 1609 1612 1703 1706 1709 1712 1803
Q1
Nordic reservoir level
Nordic reservoir level (total market) was below median at 81% end of March due to cold and dry weather.
0
10
20
30
40
50
60
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80
90
Q3 Q1 Q2 Q4
2017
2018
Median
%
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Nordic power prices
Nordic power prices 38.6 EUR/MWh, up 24% Q1 2018 vs. Q1 2017
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10
15
20
25
30
35
40
45
Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q1 Q4 Q3 Q2 Q1
Average monthly spot price EUR/MWh
2015 2016 2017
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2018
Energy management
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Q1 generation up 23% Q-on-Q
Technology TWh Change in TWh
Hydropower 19.9 4.1
Wind power 0.6 -0.2
Gas power 0.4 -0.1
Bio and solar power 0.1 -
Total 21.0 3.9 0
2
4
6
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
TWh Monthly power generation
2017 2018
Q1 net operating revenues and other income
13
NOK million
-24
320 490
835
233
-339
288 474
243 267
-548 Sale of gas
6 972
Generation Customers Grid and other revenues
Trading & Origination
Other operating income
Transmission costs
8 160
Total net operating
revenues and other income
5 456
0
8 884
Q1 2017
Q1 2018
Sales revenues less energy purchase
NOK 6 billion in underlying EBIT
Underlying EBIT up NOK 1972 million Q-on-Q
Primarily a result of - higher Nordic power prices - record high generation
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∆ Q1 18/Q1 17 +49%
10 824
3 990
5 962
Q1 2017 FY 2017 Q1 2018
NOK million
Financial items
15
5 4285 064
88
Other financial items
Currency gains and losses
548
Interest expenses
-272
Interest income Net financial items Q1 2018
NOK million
Breakdown Net financial items Q1 2018
Net profit
Solid contributions from operating activities
Gains from divestment of offshore wind assets and listing of Fjordkraft
16
NOK million Q1 2018 Q1 2017 The year 2017
Net profit 10 282 2 748 11 707
Underlying EBIT Q1 2017 Q1 2018
Q1 net profit breakdown
17
2 689
5 428
5001 460
368
591 913
10 282
5 962
3 990
Operating expenses
Net operating revenues and other income
Q1 2017 Operating profit/loss
(EBIT) underlying
Q4 2017 Net profit
Tax Net financial items
Share of profit/loss in equity
accounted investments
Impairments
10
Gain/loss from acquisitions/
divestments of business activities
Unrealised value changes from energy derivatives
Q1 2018 Operating profit/loss
(EBIT) underlying
NOK million
Booked net profit affected by items gains from divestments
Underlying EBIT Q1 2018 Net Profit Q1 2018
Underlying EBIT ∆ +49% vs. Q1/17.
Q1 segment financials
18
653 156
-15
87
605 170 191 80 131
614
Wind power
Industrial ownership
Market operations
European flexible generation
International power
District heating
2 648
4 872
2017
2018
NOK million
39 12 60
15
District heating
Wind power
European flexible generation
Market operations
International power
Industrial ownership
279
432
Operating profit/loss (EBIT) underlying
Share of profit/ loss in equity accounted investments
NOK 0.9
billion
Q1 2018 capital expenditure1
Distribution of CAPEX in the quarter: - 54% expansion investments - 45% maintenance/other investments - 1% shareholdings
New hydropower capacity under construction in Albania
Wind power developments in Norway
Maintenance primarily within Nordic hydropower and Norwegian grid
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European flexible
generation 28%
International power 17%
Industrial ownership
23%
Wind power 28%
Other2 5%
1 Excluding loans to equity accounted investments 2 Including District heating, Market operations and Other activities
14 217
21 352 6 277
5 813
4 889 64
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
16 000
18 000
20 000
22 000
24 000
26 000
28 000
Changes in debt Cash reserves 01.01 Investment activities From operations Currency effects Cash reserves 31.03
Cash flow in Q1
20
NOK million
Long-term debt repayment profile
NOK 2.2 billion debt repurchased in Q1
NOK 13.3 billion in net interest-bearing debt (NOK 32.4 billion in Q1 2017) - NOK 35%, EUR 59%, USD 2%, BRL 3%, CLP/CLF 1% - Average maturity: 5.6 years - Net interest-bearing debt-equity 11.8%
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0
2 000
4 000
6 000
8 000
10 000
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 >2028
Strong credit ratings
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A- / Stable Baa1 / Stable
Maintaining current ratings with S&P and Moody’s
Strong support from owner
CAPEX adapted to financial capacity
Rating impact assessment completed prior to new investment decisions
Delivering on strategy
Strong underlying operations
Robust financial position
Solid foundation for further growth in renewable energy
Summary
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www.statkraft.com
THANK YOU Investor contacts: Debt Capital Markets Financial information Funding manager Stephan Skaane Senior Financial Advisor Arild Ratikainen Phone: +47 905 13 652 Phone: +47 971 74 132 E-mail: [email protected] E-mail: [email protected] Vice President Tron Ringstad Vice President Bjørn Inge Nordang Phone: +47 905 13 652 Phone: +47 913 59 865 E-mail: [email protected] E-mail: [email protected]