the most important infrastructure. of...
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The most important infrastructure. Of all.
One focused business
The most important infrastructure. Of all. 3
Facts 2014
The most important infrastructure. Of all.
4
Grid size 11-12,000 km high voltage lines
Substations 170
Employees 1121
Balance sheet NOK 41,1 billion
Revenues (adj) NOK 6,2 billion
EBITDA (adj) NOK 3,2 billion
Profit after tax
(adj)
NOK 1,3 billion
One defined mission
The most important infrastructure. Of all. 5
“ To build the next generation power system in Norway by 2030.
2
Focused
investments
Investments in the power system
- the long term picture
7Focused investments
Bringing Statnetts investments
to a new level
Focused investments 8
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2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Expected Investments(2014)
(Investments in billion NOK)
Secure power supply
Lofoten (substations)
2015
Increased
transformer capacity
Northern Norway
(substations)
2017/2018
Ørskog-Sogndal
(new powerline)
Voltage upgrade
west corridor;
Solholm-
Arendal
Feda-Ertsmyra
Lyse-Førre-
Saurdal
Ofoten - Balsfjord (new
powerline) 2017/2018
AC-cables Tjeldsundet
(reserve power) 2015
Voltage upgrade Central
Norway;
Klæbu-Namsos and Namsos-
Nedre Røssåga 2017
Increased transformer
capacity Eastern Norway
2015/2016
New 420 kV AC
cables Oslofjord
2018
Nordlink, sea cable
connecting Norway and
Germany 2020
NSN, sea cable
connecting Norway
and Great Britain
2021
Lakselv substation
2015
Projects under construction 2015
Recently commissioned:
- Skagerak 4
- Sima-Samnanger
- Østre Korridor
- Varangerbotn-Skogfoss
- Ytre Oslofjord
Focused investments
Connecting the European power market
NSN (UK)-Capacity app. 1400 MW
-Est. compl. 2021
NordLink-Capacity app. 1400 MW
-Est. compl. 2020
Focused investments
60 helicopter flights per tower – 36 000 for
the Ørskog – Sogndal project in total
Work in high voltage environment
Marine operations – laying of sea cable
Health and safety, comes first – always
• Injury frequency halved
• No severe environmental damages
• Stable, absence due to illness- 3,2 in 2014
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2013-12 2014-02 2014-04 2014-06 2014-08 2014-10 2014-12
Development injury frequency,incl. Contractors,
(12 month rolling mean)
H1-verdi StatnettSkadefraværsfrekvens i StatnettAbsence frequency of injury in Statnett
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S&P research update, May 2014
3
Ownership and financing
«Business Risk: Excellent»
2012 Meld. St. #14
“
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Long term state ownership
All investments politically sanctioned (license,
white paper on grid development)
Equity injection 2014 supported by two governments
Mature and predictable regulation
The TSOs essential role in the power system makes it important that these functions are unified and owned by the State.
Predictable revenues and profitability
«Business Risk: Excellent» 18
Costs 40% Costs 60% efficiency score
Efficiency score: 100%
Successful benchmark with other European TSOs
The 15% efficiency programme
Timely compensation
No time lag on investments, system service costs or depreciation, two years lag on operational costs
(compensated with inflation)
2. Regulated rate of return:
(2,5%+inflation+0,875*5%)
0,73
1. Revenues:
* 40% + (5ySwap rate+margin) * 60%
Conservative finance policy
Sufficient liquidity
• 12 months reserves
• NOK 6,5 bn RCF
Low counterparty risk
• Minimum rating requirements
• Credit Support Annex (CSA)
Reduced interest rate risk
• New regulated rate of return from 2013
• Seek to correlate rate on debt with NVE-interest rate
Low finance risk 20
Multiple sources of capital as of 30.06.2015
Low finance risk 21
Issues in SEK (SEK 200 million)
Domestic Bonds (NOK 6 060 million)
Issues in CHF (CHF 400 million)
Issues in JPY (JPY 4 000 million)
Drawn Bank Loans EIB & NIB (NOK 5 466 million)
Issues in USD (USD 720 million)
Issues in EUR (EUR 70 million)
Issues in Domestic Commercial Papers (NOK 500 million)
Low re-financing risk as of 30.06.2015
Low finance risk 22
0
500
1000
1500
2000
2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 2045
Bank Loans (EIB & NIB)
Domestic Bonds
International Bonds
Commercial Paper
Long term funding
NOK 3.1 billion in new long term loans in 2014
• Three transactions from two different markets
• Average volume weighted tenor 11,5 years
Significant funding program going forward – across markets
Core bank group:
Low finance risk 23
Summary
5
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Key investments
Under implementation Location Expected investment
in million NOK
Ørskog - Sogndal, new 420 kV power line Møre og Romsdal/Sogn og Fjordane 4 600 - 5 600
Ofoten - Balsfjord, new 420 kV power line Nordland/Troms 3 000 - 4 000
Licences pending or appealed
Western Corridor, voltage upgrade Vest-Agder/Rogaland 6 000 - 9 000
Namsos - Trollheim, new 420 kV power line Trøndelag/Møre og Romsdal 5 400 - 7 700
Balsfjord - Hammerfest, new 420 kV power line Troms/Finnmark 5 000 - 8 000
Interconnectors
Cable to England EUR 750 - 1 0001)
Cable to Germany EUR 750 - 1 000)
Latest commissioned facilities
Skagerak 4 Norway/Denmark
Eastern Corridor Vest-Agder/Telemark
Ytre Oslofjord Telemark/Østfold
Focused investments 28 1) Statnett's share
Reconciliation of financial key figures
Appendix 29*You will find these figures in note 4 in the annual report
In million NOK
Unadjusted figures 2007 2008 2009 2010 2011 2012 2013 2014 H1- 2015
Revenue 3 415 4 256 2 862 7 247 5 497 5 334 4 561 5 563 2 874
EBITDA 1 535 1 722 259 3 945 2 426 2 260 1 394 2 528 1 769
EBIT 1 025 1 194 -403 3 279 1 628 1 433 346 1 378 1 010
Profit after tax 651 1 517 -480 2 198 1 000 837 82 829 607
Adjustments
Accumulated higher revenue* -293 428 -633 1 554 2 617 3 455 2 413 1 790 1 494
Adjustment for changes in acc. higher/lower revenue -20 -721 1 061 -2 187 -1 064 -838 1 042 623 296
Adjusted figures
Adjusted revenue 3 395 3 535 3 923 5 060 4 433 4 496 5 603 6 186 3 170
EBITDA 1 515 1 001 1 320 1 758 1 362 1 422 2 436 3 151 2 065
EBIT 1 005 473 658 1 092 564 595 1 388 2 001 1 306
Profit after tax 637 998 284 623 234 234 832 1 284 823
Calculation of allowed regulated revenue
Appendix 30