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					             Third-quarter 2007 report




       Third-quarter 2007 highlights

       >               After-tax profit of NOK 1,346 million (NOK 1,454 million), of which NOK 1,302 million
                       (NOK 1,263 million) is attributable to the Group’s investment in Renewable Energy
                       Corporation (REC).

       >               Operating profit excluding REC: NOK 209 million — down NOK 229 million from the third
                       quarter of 2006.

       >               Significantly lower spot power prices compared with 3Q 2006 result in poor profit
                       performance by Hafslund’s power generation and district heating businesses.

       >               Return on equity, excluding REC: 13.2 percent for the 12-month period ending 30
                       September 2007 (16.3 percent for the 2006 accounting year).

       >               Decision made to apply for Oslo Stock Exchange listing of Hafslund’s Technical Services
                       business area.




                                                                               Earnings per share

                                                                                NOK      6.90


> Operating profit, excluding REC                          > Profit per share, excluding REC                       > Equity ratio
             800                                                  2,0                                               64 %                                 63 %
                                                                                                                                                  62 %
             700               659                                                1,63                              62 %
                                                                                          1,55
                                      563
             600                                                  1,5                                               60 %
 NOK mill.




                         453
                                                            NOK




             500                                                                                 1,09               58 %
                                             398                        0,98
                                                                                                                                           55 %
             400                                                  1,0                                               56 %
             300                                                                                                    54 %   53 %     53 %
                                                    209
             200                                                  0,5                                               52 %
                                                                                                        0,23
             100                                                                                                    50 %

                   -                                              0,0                                               48 %
                        3Q06   4Q06   1Q07   2Q07   3Q07                3Q06      4Q06    1Q07   2Q07   3Q07               3Q06     4Q06   1Q07   2Q07   3Q07
                                                                                                               k                                                k
    Third-quarter 2007 report




     Key figures

             Third quarter                                                                                       YTD                                      Year

            2006              2007 Profit and loss (NOK million)                                            2007                 2006                     2006

            2,308             1,667 Operating revenue                                                      6,527                 7,692                   10,796
            1,901             1,742 Operating profit before depreciation                                  12,060               11,257                    13,480
            1,701             1,511 Operating profit                                                      11,431               10,712                    12,740
            1,616             1,394 Profit before tax and discont operation                               11,139               10,453                    12,380
            1,454             1,346 Profit after tax                                                      10,823                 9,964                   11,650

                                     Capital matters

           30,101            40,163 Total assets                                                          40,163               30,101                    32,969
           52.8 %            63.1 % Equity ratio                                                          63.1 %               52.8 %                    53.3 %
            9,649             9,767 Net interest-bearing debt                                              9,767                 9,649                    9,379

                                     Per-share figures (NOK)

             7.45              6.90 Profit (EPS)                                                           55.45                 51.05                    59.69
             2.92              1.59 Cash flow from operations                                                7.22                  7.20                    7.41

                                     Key figures (GWh)

              706               852 Power generation                                                       2,508                 2,107                    3,029
            1,745             2,200 Power sales                                                            8,886                 8,140                   11,242




                                                                              The Hafslund Group’s return on equity over the past 12
     Third-quarter 2007 report                                                months, excluding the Group’s REC investment, was 13.2
                                                                              percent. For comparison, return on equity for the 2006
                                                                              accounting year was 16.3 percent.
     Figures are in NOK unless otherwise stated. Comparative
     third-quarter 2006 figures appear in parentheses.                        Third-quarter 2004-2007 (excluding REC)
                                                                              (NOK million)
     The Hafslund Group had a third-quarter 2007 profit after
     tax of NOK 1,346 million (NOK 1,454 million), down seven                  500                        472
     percent compared with the third quarter of 2006.                          450
                                                                                                                             438

     Earnings per share (EPS) for the third quarter amounted
                                                                               400
     to NOK 6.90 (NOK 7.45), which is also the figure for
                                                                               350
     diluted EPS. Profit attributable to the Group’s REC
     investment was NOK 1,302 million in the third quarter of                  300
                                                                                         236                     232
     2007 (NOK 1,263 million). Operating profit, excluding                     250
                                                                                                                                                   209
     profit on Hafslund’s Renewable Energy Corporation (REC)                                                                         191
                                                                               200
     investment was NOK 209 million (NOK 453 million), down                    150
     54 percent compared with the third quarter of 2006. The
                                                                               100             79
     comparatively lower operating profit is mainly                                                                                                        44
                                                                                50
     attributable to poor profit performance by the Group’s
     power generation and district heating businesses that                           -
                                                                                           2004               2005              2006                    2007
     resulted from low power prices, and the effects of a new                                       O pe ra t ing pro f it   P ro f it a f te r t a x
     regulatory regime, introduced 1 January 2007, governing
     Hafslund’s power grid activities.




2                                                                                                               SHAREHOLDER REPORT HAFSLUND ASA
    Third-quarter 2007 report




     The Hafslund Group’s Power Generation business, which         The Hafslund Group’s Power Sales business had a third-
     includes the Group’s power trading profit center, had a       quarter 2007 operating profit of NOK 37 million, up NOK
     third-quarter 2007 operating profit of NOK 110 million,       19 million compared with the third quarter of 2006. The
     down NOK 140 million compared with the third quarter of       total volume of power sold to corporate and residential
     2006. The effect of lower wholesale power prices was a        customers in the third quarter of 2007 was 2,200 GWh, up
     NOK 235 million reduction in profit contribution, in a        26 percent compared with the third quarter of 2006. The
     profit analysis comparison with the third quarter of 2006.    increase reflects customer base growth and lower
     The average price at which power was sold in the third        temperatures in the third quarter of 2007 compared with
     quarter of 2007 was 76 percent lower than in the third        the third quarter of 2006.
     quarter of 2006. However, a solid power trading profit
                                                                   The Group’s Residential Security business (Sikkerhet
     contributed to Power Generation’s third-quarter 2007
                                                                   Privat) had an operating profit before depreciation of
     operating profit.
                                                                   NOK 25 million, up 14 percent compared with the third
     Hafslund’s Heat district heating business had an operating    quarter of 2006. The number of residential alarm
     profit of -NOK 63 million in the third quarter of 2007. The   customers was 77,000 at the close of the quarter.
     poor profit performance is a consequence of a seasonally      Operating profit for the third quarter of 2007 was NOK 10
     weak quarter that accounts for about eight percent of         million (NOK 13 million). Efforts to improve customer
     average annual production. Low power prices for electric      satisfaction and operational efficiency are proceeding as
     power traded via Nord Pool and a NOK 20 million write-        planned. The goal is to achieve, by year-end 2007, a rate
     down affecting the first six months of the year also cut      of customer-base departures of less than ten percent and
     into third-quarter 2007 profit.                               a NOK 50 million reduction in costs compared with the
                                                                   fourth quarter of 2006.
     Hafslund’s Network business had an operating profit of
     NOK 70 million. The new regulatory model introduced as        Hafslund’s Renewable Energy Corporation (REC)
     of 2007, which determines Network’s income ceiling —          investment had NOK 1,302 million (NOK 1,263 million) in
     along with the income effects of changes in regulations       value growth in the third quarter of 2007. The Hafslund
     governing grid companies’ duty to deliver power to            Group’s REC investment is recorded at market value in
     customers — weakened third-quarter 2007 profit                the balance sheet; market valuation is determined by the
     compared with the third quarter of 2006 by NOK 50             closing share price on the Oslo Stock Exchange on the
     million.                                                      balance sheet date. The closing price of REC shares as of
                                                                   30 September 2007 was NOK 248.50, up eight percent in
     The Telekom business had an operating profit before
                                                                   the quarter and 118 percent in the first nine months of
     depreciation of NOK 17 million. Operating profit for the
                                                                   2007.
     third quarter of 2007 was NOK 7 million. Adjusted for
     profit from business activities transferred to other parts    Financial expenses amounted to NOK 117 million in the
     of the Group, the NOK 7 million operating profit is an        third quarter of 2007 (NOK 85 million). As of 30
     improvement of NOK 5 million compared with the third          September 2007, the Group’s gross interest-bearing debt
     quarter of 2006. As of 30 September 2007, Telekom owns        amounted to NOK 10.2 billion (NOK 10.3 billion); the
     and leases 1,995 kilometers of fiber optic network.           average coupon interest was 5.7 percent (5.1 percent).
                                                                   Higher market interest rates resulted in greater financial
     The Technical Services business area had a third-quarter
                                                                   expenses for floating-interest debt. However, the Group’s
     2007 operating profit of NOK 29 million, up 21 percent
                                                                   fixed-interest-rate debt more than offset the impact of
     compared with the third quarter of 2006 taking into
                                                                   rising interest rates, due to fair-value recording of fixed-
     account a NOK 12 million non-recurring item recorded in
                                                                   interest loans in the balance sheet. Changes in the
     the third quarter of 2006. Net operating margin was eight
                                                                   market value of fixed-interest loans reduced third-
     percent in the third quarter of 2007. All Technical
                                                                   quarter 2007 financial expenses by NOK 23 million.
     Services business units continued to enjoy high activity
     levels and solid order situations in the third quarter of     The Group’s tax expense for the third quarter of 2007
     2007. The third quarter is typically a good quarter for the   was NOK 47 million, which corresponds to an effective tax
     industry with high activity levels and solid margins.         rate of three percent. The low effective tax rate is
                                                                   largely attributable to the untaxed value growth on




3                                                                                            SHAREHOLDER REPORT HAFSLUND ASA
    Third-quarter 2007 report




     venture investments (shares). Norway’s tax on                                                                 > Power Generation
     hydropower generation facilities amounted to NOK 2                                                                                       Third quarter        YTD
     million in the third quarter of 2007 (NOK 75 million) due
                                                                                                                   NOK million                 2007     2006    2007     2006
     to low power prices in the quarter.
                                                                                                                   Operating revenues           156      377     532      926
     > Cash flow, investments, and capital matters                                                                 Operating profit before
                                                                                                                                                121      261     418      733
     Cash flow from operations decreased to NOK 310 million                                                        depreciation
                                                                                                                   Operating profit             110      250     386      704
     in the third quarter of 2007, down NOK 259 million
                                                                                                                   Sales price (øre/kWh) *     11.2     46.5    18.2     37.7
     compared with the third quarter of 2006. The decrease
                                                                                                                   * 100 øre = NOK 1
     includes a NOK 16 million reduction in working capital in
     the quarter, compared with a NOK 47 million increase in
     the third quarter of 2006. Net cash flow for operational                                                      Hafslund’s Power Generation business had operating
     and expansion investments amounted to NOK 338 million                                                         revenues of NOK 156 million in the third quarter of 2007,
     (NOK 268 million).                                                                                            down 58 percent compared with the corresponding 2006
                                                                                                                   reporting period. The decrease is attributable to lower
     Net interest-bearing debt amounted to NOK 9.8 billion as
                                                                                                                   sales prices in the third quarter of 2007 compared with
     of 30 September 2007, up NOK 0.1 billion in the third
                                                                                                                   the corresponding 2006 reporting period, despite a solid
     quarter. The Hafslund Group had total assets of NOK 40.2
                                                                                                                   power trading profit for the third quarter of 2007.
     billion as of 30 September 2007, up NOK 1.3 billion in the
     quarter, which corresponds to the value growth on the                                                         Excluding power trading activities, Power Generation had
     Group’s REC investment.                                                                                       a third-quarter 2007 operating profit of NOK 57 million,
                                                                                                                   down NOK 194 million compared with the corresponding
     The Group’s equity ratio at the close of the third quarter
                                                                                                                   2006 reporting period. The volume-weighted sales price
     of 2007 was 63 percent, up from 62 percent at the close
                                                                                                                   for the third quarter of 2007 was NOK 0.112 per kWh,
     of the second quarter.
                                                                                                                   down 76 percent compared with the third quarter of
     Net interest-bearing debt                                                                                     2006. The effect of lower power prices was a NOK 235
     (NOK billion)                                                                                                 million reduction in profit contribution, compared with
                                                                                                                   the third quarter of 2006.
      13

              11.6
                                                                                                                   In the third quarter of 2007, generated power was sold at
       11.2          11.2                                                                                          130 percent (96 percent) of the spot-market price for the
                            10.9
      11                                  10.5 10.5                                                                period, as a result of some downside hedging. Power
                                   10.2                                 10.1 10.0
                                                                                                            9.8    generation was 852 GWh, 21 percent higher than in the
                                                      9.6         9.5               9.6
                                                                                          9.4         9.7          third quarter of 2006, and four percent above median
                                                            9.2

      9
                                                                                                                   production for the reporting period. Greater-than-normal
                                                                                                                   power production contributed NOK 16 million to the
                                                                                                                   quarter’s profit, compared with the third quarter of
                                                                                                                   2006.
       7
                                                                                                6.2
                                                                                                                   Following a summer season with a great deal of
                                                                                                                   precipitation, waterway influx in the Glomma waterway
       5                                                                                                           has subsided. At the close of week 47, reservoir levels in
       3Q03          1Q04          3Q04       1Q05          3Q05        1Q06        3Q06        1Q07        3Q07   the drainage basin supplying Hafslund’s power plants are
                                                                                                                   85 percent of normal for the season. Long-term
                                                                                                                   projections based on current hydropower reservoir levels
                                                                                                                   and normal precipitation, indicate that Hafslund’s fourth-
                                                                                                                   quarter power generation will be approximately 85 GWh
                                                                                                                   below normal levels.




4                                                                                                                                            SHAREHOLDER REPORT HAFSLUND ASA
    Third-quarter 2007 report




     Power generation vs. 10-year average                                    > Heat
     (GWh)                                                                                              Third quarter         YTD

              350                                                            NOK million                 2007     2006      2007    2006

              300
                                                                             Operating revenues            43           2    353      23
                                                                             Operating profit before
                                                                                                            -8      -3        87      32
              250                                                            depreciation
                                                                             Operating profit             -63       -4       -11      29
              200                                                            Sales price (in øre per
                                                                                                         45.8               51.2
                                                                             kWh)
              150


              100
                                                                             In the above table, 2006 figures for Heat, the Hafslund
               50                                                            Group’s district heating profit center, are figures
                                                                             reported by Hafslund Fjernvarme AS and Hafslund’s
                0
                     J     F     M   A   M    J   J    A   S   O   N   D     proportionate share of profit from Viken Fjernvarme AS,
             2006    216   171 152   207 340 314 199   255 253 286 308 328   which was 33 percent owned by Hafslund through year-
             2007    287 213 223 243 349 341 347 321 184                     end 2006 and treated as an associated company. As of 2
             M ean   210   167   161 217 337 325 317 267 238 255 236 219
                                                                             January 2007, Viken Fjernvarme AS is a wholly owned
     Note: Mean / Normal = 10-year average production.                       Hafslund subsidiary. Thus, figures for 2007 and 2006 are
                                                                             not comparable.
     Exposure to spot prices is expected to continue to make
     profits from Hafslund’s power generation business largely               Hafslund’s Heat business had third-quarter 2007
     driven by market price developments. As of 25 October                   operating revenues of NOK 43 million. Operating profit
     2007, forward power contract prices show a strong                       before depreciation amounted to -NOK 8 million. The
     upward trend toward year-end 2007 and into 2008.                        operating profit must be considered in light of a
                                                                             seasonally weak quarter (about eight percent of annual
     The upgrade program involving five of the oldest
                                                                             production), and low district heating prices in the third
     generators at Hafslund’s Vamma hydropower plant is
                                                                             quarter of 2007. Heat had a third-quarter 2007 operating
     proceeding according to schedule. Greater efficiency,
                                                                             profit of -NOK 63 million; the figure includes NOK 20
     throughput, and production capacity will be achieved by
                                                                             million in depreciation associated with the first six
     the modernization and upgrade program. Production at
                                                                             months of the year.
     the Vamma facilities will increase by some 30 GWh
     annually once the upgrade program has been completed                    The energy volume of 98 GWh sold in the third quarter of
     in the spring of 2011. Planning associated with the                     2007 was 40 percent greater than the third-quarter 2006
     construction of a new 40 MW hydropower facility at                      pro forma (including Viken Fjernvarme) figure. The price
     Kykkelsrud is proceeding according to plan, and turbine                 of energy sold in the third quarter of 2007 was NOK 0.458
     and generator contracts have been signed. When the new                  per kWh, down 34 percent compared with the third
     generating facilities go online in the spring of 2010, total            quarter of 2006. The price decline should be viewed in
     Kykkelsrud annual generation capacity will be                           the context of significantly lower Nord Pool power prices.
     approximately 85 GWh.
                                                                             As part of efforts to streamline Viken Fjernvarme’s core
     The Hafslund Group’s power trading activities had a                     business activities, various tasks are being phased out.
     third-quarter 2007 operating profit of NOK 55 million                   Accordingly,     personnel     performing     operational
     (NOK 47 million). A NOK 2 million increase in licensed                  maintenance were transferred to Hafslund Entreprenør in
     power obligations (NOK 48 million) resulted in a total                  the third quarter of 2007.
     power trading profit for the third quarter of 2007 of NOK
     53 million (NOK 1 million). Licensed power obligations to
     municipalities are valued based on an annual outtake of
     62 GWh at NOK 0.09 per kWh, a price determined by
     Norway’s Ministry of Petroleum and Energy.




5                                                                                                      SHAREHOLDER REPORT HAFSLUND ASA
    Third-quarter 2007 report




     > Network                                                      The Norwegian Water Resources and Energy Directorate
                                Third quarter         YTD           (NVE) determines the annual income ceiling of each grid
                                                                    company, in part based on its investments in grid
     NOK million                 2007     2006     2007     2006
                                                                    infrastructure and maintenance. Hafslund anticipates a
     Operating revenues           656      679    2,310     2,418   rate of return, over time, on capital invested in
     Operating profit before
                                  189      250      719      930    Network’s activities (so-called NVE capital) of three
     depreciation
     Operating profit              70      122      345      545    percentage points above risk-free interest. At current
     Investments                   80       90      226      201    interest rates, that return corresponds to a normalized
                                                                    return, over time, of approximately eight percent.
                                                                    However, the annual rate of return achieved may differ
     Hafslund’s Network business had third-quarter 2007             from the target figure due to various factors. Among the
     operating revenues of NOK 656 million, down three              factors affecting a company’s annual income ceiling is
     percent compared with the third quarter of 2006.               NVE’s method for determining industry-wide cost norms,
     Operating profit before depreciation amounted to NOK           which are calculated using a number of parameters and
     189 million in the third quarter of 2007 (NOK 250 million).    data sets for select years.
     Network’s operating profit was NOK 70 million (NOK 122
     million), down 43 percent compared with the third              Number of service interruptions – rolling 12-month
     quarter of 2006.                                               average

     The new regulatory regime governing Norwegian grid              1,400

     companies that went into effect 1 January 2007, resulted
                                                                     1,200
     in a total negative profit effect of NOK 50 million,
                                                                                 1,028
     compared with the third quarter of 2006. Modest
                                                                     1,000
     increases in maintenance costs due to higher                                        891
                                                                                               857
                                                                                                      785                                            792
     procurement prices also affected profit. These negative          800                                   749                           737 752
                                                                                                                   716             707                     716
     factors resulted in a NOK 70 million third-quarter 2007
                                                                                                                         613 624
     operating profit for Hafslund’s Network business.                600

     The number of supply interruptions shows improvement
                                                                      400
     in recent years. On a 12-month rolling basis, supply
     interruptions were reduced by 30 percent from the third          200
     quarter of 2004. Significant investments in remedial
     measures have resulted in fewer power outages. The                      -
     number of service interruptions decreased by ten percent                    3Q04          1Q05         3Q05         1Q06      3Q06       1Q07         3Q07

     in the third quarter of 2007; the decrease is mainly
     attributable to fewer lightening strikes and thunder
     storms accompanied by strong winds in the third quarter
     of 2007, compared with the corresponding 2006 period.
     Penalties for service interruptions (KILE charges) for the
     third quarter were on a par with the corresponding 2006
     reporting period, despite a regional-grid power outage in
     August that affected one-third of Oslo’s power
     customers; the incident triggered a NOK 7.5 million KILE
     charge.

     Hafslund Network will continue its efforts to maintain a
     stable, robust distribution grid that features excellent
     supply reliability and safe working conditions. In the
     period 2008-2010, Hafslund’s network business will invest
     between NOK 2.5 billion and NOK 3 billion on grid
     maintenance and infrastructure investments.



6                                                                                                             SHAREHOLDER REPORT HAFSLUND ASA
    Third-quarter 2007 report




     > Telekom                                                     (13 percent). Adjusted for a NOK 15 million non-recurring
                                Third quarter         YTD          item recorded in the third quarter of 2006, Technical
                                                                   Services’ third-quarter 2007 operating profit was up 38
     NOK million                 2007     2006     2007     2006
                                                                   percent, compared with the third quarter of 2006.
     Operating revenues             65      78      240      140
     Operating profit before                                       High activity levels and solid order books continued at
                                    17      26       46       50
     depreciation                                                  most Technical Services business units. The third quarter
     Operating profit                7      16       14       25   is generally a strong quarter for the industry with high
     Investments                    66      19      172       97
                                                                   activity levels and relatively solid margins. The labor
                                                                   market continued to be tight and there is a great deal of
     Hafslund Telekom’s third-quarter 2007 operating               focus on efficient resource utilization and good project
     revenues amounted to NOK 65 million, down 17 percent          execution. Hiring in-sourced, additional workforce and
     compared with the third quarter of 2006. The revenue          subcontractors has been necessary to meet seasonal
     decline must be seen in light of the transfer to other        workload variations.
     parts of the Hafslund Group of Telekom’s former IT
                                                                   Sales to other Hafslund Group companies comprised some
     Service business and activities related to remote reading
                                                                   34 percent (34 percent) of total third-quarter 2007
     of power meters.
                                                                   revenues.
     Operating profit before depreciation was NOK 17 million,
                                                                   Organizational modifications have been completed to
     down NOK 9 million compared with the third quarter of
                                                                   respond to markets that are undergoing change and to
     2006. Adjusted for the transferred business activities, the
                                                                   define more clearly the several business units for
     NOK 17 million figure represents a NOK 5 million
                                                                   customers and other participants. Accordingly, Technical
     improvement over the third quarter of 2006.
                                                                   Services has three business areas: Infrastructure,
     Operating profit for the third quarter of 2007 was NOK 7      Technical Systems, and Guard Services.
     million (NOK 16 million). Investments as of the third
                                                                   Infrastructure, which comprises Hafslund Entreprenør
     quarter amounted to NOK 172 million, of which NOK 116
                                                                   (contracting) and Hafslund Lys (street lighting), had third-
     million is attributable to fiber optic network expansion,
                                                                   quarter 2007 operating revenues of NOK 179 million, up
     largely in Oslo and nearby Follo and Nittedal
                                                                   48 percent from the third quarter of 2006. Operating
     municipalities. As of 30 September 2007, Hafslund
                                                                   profit for the quarter was NOK 18 million (NOK 13
     Telekom owns and leases 1,995 kilometers of fiber optic
                                                                   million); the net operating margin was 10 percent (10.5
     network.
                                                                   percent). Activity levels were high in the quarter and
                                                                   markets stronger than in the third quarter of 2006. Use of
                                                                   third-party suppliers, though, resulted in some pressure
     > Technical Services                                          on margins.
                                Third quarter         YTD
                                                                   Technical Systems, which comprises Hafslund Sikkerhet
     NOK million                 2007     2006     2007     2006
                                                                   Teknikk (security technology), Hafslund Installasjon
     Operating revenues           337      272      947      772   (electrical installation), and Hafslund Elsikkerhet AS
     Operating profit before
                                    34      44       72       78   (electrical safety), had aggregate third-quarter 2007
     depreciation
     Operating profit               29      36       57       61
                                                                   operating revenues of NOK 111 million, up 2.3 percent
     Net operating margin          8%      13%       6%      8%    compared with the corresponding 2006 reporting period.
                                                                   The street and highway lighting business (Light) was
                                                                   organized as a separate Technical Services profit center
     The Technical Services business area had third-quarter        in January 2007. As of the third-quarter of 2007, Light is a
     2007 operating revenues of NOK 337 million, up 24             component of the Infrastructure business area of
     percent compared with 2006’s third quarter.                   Technical Services. Technical Systems’ third-quarter 2007
     Operating profit for the third quarter of 2007 amounted       operating profit of NOK 6 million is significantly below the
     to NOK 29 million (NOK 36 million). Technical Services’       corresponding 2006 figure (NOK 19 million). Operating
     net operating margin for the quarter was eight percent        profit was negatively affected by a strategic shift to




7                                                                                            SHAREHOLDER REPORT HAFSLUND ASA
    Third-quarter 2007 report




     greater focus on open, competitive contracting markets.         the relatively cold summer season and customer base
     Revenue losses and restructuring costs ensued. Third-           growth. The volume of power sold to corporate-market
     quarter 2007 profit was also affected by costs associated       customers was 904 GWh, up 55 percent compared with
     with integration of previously acquired companies.              the third quarter of 2006. The volume growth is largely
     Comparison with the third quarter of 2006 is also affected      attributable to the contracts signed with the City of Oslo
     by a NOK 15 million profit contribution from a non-             and the supermarket group NorgesGruppen.
     recurring item recorded by the electrical safety business.
                                                                     Power Sales – volume sold
     Electrical Safety enjoyed solid activity levels in the third
                                                                     (GWh)
     quarter of 2007. Net operating margin was five percent in
     the quarter, compared with 17.8 percent in the third             5,000
     quarter of 2006.

     Guard Services, which comprises Hafslund Sikkerhet Vakt,         4,000

     had operating revenues of NOK 58 million (NOK 43
     million) in the third quarter of 2007 and significant            3,000
     operating margin improvement. Third-quarter 2007
     operating profit was NOK 5 million (NOK 3 million). The
                                                                      2,000
     increase in operating profit shows that focusing of
     business activities and a new organizational model are
     paying off.                                                      1,000



                                                                          0
     > Power Sales                                                                 1Q           2Q              3Q             4Q
                                                                                               2005    2006    2007
                                Third quarter         Year

     NOK million                2007     2006     2007       2006

     Operating revenues            423      901    2,204     3,376
     Operating profit before
                                    39       21      229       107
     depreciation                                                    > Residential Security
     Operating profit               37       18      223       101                               Third quarter            YTD
     Power sales (GWh)           2,200    1,745    8,886     8,140
                                                                     NOK million                     2007     2006     2007     2006

                                                                     Operating revenues                65       62      196         191
     Hafslund’s Power Sales business had operating revenues          Operating profit before
                                                                                                       25       22       56          54
     of NOK 423 million in the third quarter of 2007 (NOK 901        depreciation
     million), down 53 percent compared with the                     Operating profit                  10       13        9          28
     corresponding 2006 reporting period. The decrease in            Customers                   77,000     78,300    77,000   78,300

     operating revenues is attributable to significantly lower
     power prices on Nord Pool’s spot market, despite higher         Operating revenues of Hafslund’s residential alarm
     sales volumes. Power Sales had a third-quarter 2007             business (Sikkerhet Privat) amounted to NOK 65 million
     operating profit of NOK 37 million, up NOK 19 million           (NOK 62 million) in the third quarter of 2007. The
     compared with the corresponding 2006 reporting period.          increase is attributable to changes in the income
     Profit for the third quarter of 2007 is considered              recognition of sales of add-on equipment. The total
     satisfactory for a traditionally weak quarter.                  number of residential alarm customers as of 30
     The 2,200 GWh volume of power sold in the third quarter         September 2007 was 77,000.
     of 2007 is 26 percent above the corresponding 2006              Third-quarter 2007 operating profit before depreciation
     figure. The volume of power sold to residential-market          was NOK 25 million, up 14 percent compared with the
     customers totaled 1,296 GWh (1,161 GWh). The 12-                year-earlier figure. Operating profit in the quarter was
     percent residential-market volume increase, compared            NOK 10 million (NOK 13 million). Depreciation amounted
     with the third quarter of 2006, must be viewed in light of      to NOK 15 million (NOK 9 million), due to a large




8                                                                                               SHAREHOLDER REPORT HAFSLUND ASA
    Third-quarter 2007 report




     customer base, which is capitalized in the balance sheet,       Hafslund Venture is targeting the retail market for mobile
     and customer departure write-downs.                             telephony via the company OneCall AS, which is 87
                                                                     percent owned by Hafslund Venture. OneCall continued
     The Residential Security business continues its focused
                                                                     to experience strong customer-base growth in the third
     improvements to the total customer experience and
                                                                     quarter of 2007; the company now has approximately
     operational efficiency. The residential security business is
                                                                     80,000 customers, up about 18,000 customers from year-
     on schedule to achieve its goals of a rate of customer
                                                                     end 2006.
     base departures of less than ten percent by year-end
     2007 and annual cost savings of NOK 50 million, compared
     with the fourth quarter of 2006. So far this year, 70 man-
     years have been eliminated. The measures implemented            > Other Activities
     in the first nine months of 2007 will yield annual cost                                     Thrid quarter       YTD

     savings of NOK 35 million compared with fourth-quarter          NOK million                  2007     2006   2007     2006
     2006 cost levels; NOK 24 million of this cost-cutting was
                                                                     Operating profit               20      -12     77      -14
     achieved in the first nine months of 2007.
                                                                     - result financial items       17       -3     76       56


     > Venture                                                       Total third-quarter 2007 operating profit for the Group’s
                                Third quarter          YTD           Other Activities, including staff support functions,
     NOK million                  2007     2006      2007    2006    amounted to NOK 20 million (NOK -12 million), up NOK 32
                                                                     million from the third quarter of 2006. Higher profits
     Operating revenues             70          4     155      16
                                                                     from financial assets generated NOK 20 million of the NOK
     Operating profit            1,293    1,262     10,336   9,233
                                                                     32 million increase.
     - of which REC              1,302    1,263     10,262   9,257
                                                                     Total third-quarter 2007 operating profit for Group staff
                                                                     and support functions amounted to NOK 3 million, up NOK
     The operating revenues of Hafslund Venture comprise the         12 million from the third quarter of 2006. The profit
     operating revenues of companies in which Hafslund               growth must be viewed in light of lower losses on
     Venture holds an ownership interest that exceeds 50             customer receivables of the invoice management unit,
     percent; such companies are consolidated in the accounts        due to lower power prices.
     of the Hafslund Group.

     Hafslund Venture’s third-quarter 2007 operating profit
     was NOK 1,293 million (NOK 1,262 million). The Group’s          Key events
     venture portfolio investment in Renewable Energy
     Corporation accounted for NOK 1,302 million (NOK 1,263
     million) of Venture’s operating profit. The closing REC         > Stock-exchange listing of the Technical Services
     share price as of 30 September 2007 was NOK 248.50 per          The Board of Directors of Hafslund ASA has assessed
     share, up eight percent in the quarter and 118 percent          alternative structures for the Technical Services business
     from the 31 December 2006 closing price. Hafslund owns          area for some time. To achieve greater market impact
     70.4 million REC shares, which corresponds to 14.25             and to more closely align business capabilities and
     percent of all outstanding REC shares.                          customers, Hafslund has evaluated listing the Technical
     The Scudder Latin Power Funds sales process is                  Services business area on the Oslo Stock Exchange. Such
     proceeding as expected. In October 2007, Hafslund               listing would be an important step in the continued
     received a partial settlement of NOK 71 million. Total          development of Hafslund and would create new
     capital to be freed up is projected at the Funds’ book          commercial opportunities for Technical Services.
     value of approximately NOK 214 million, as recorded in          Accordingly, the Board has decided to apply for exchange
     Hafslund’s balance sheet.                                       listing of Technical Services; listing by the Oslo Stock
                                                                     Exchange is expected in early December 2007. The new




9                                                                                               SHAREHOLDER REPORT HAFSLUND ASA
     Third-quarter 2007 report




      company that encompasses Technical Services’ profit          to the interest on Norway’s treasury bills with one year
      centers is called Hafslund Infratek ASA.                     term to maturity. Under the proposal, the changes will go
                                                                   into effect as of 2007.
      Technical Services has a strong position in markets
      undergoing change. As an independent, exchange-listed
      company Technical Services would become more
      attractive to customers and employees. The financial         Shares and shareholders
      market can be more fully utilized and provide greater
      opportunities for structural changes and further value       matters
      creation.

      The listing of Technical Services is contingent upon         28 September 2007:
      satisfactory capital market acceptance and share-pricing.
                                                                                                    A-       B-             Holdin
      Hafslund ASA will retain majority ownership of Hafslund      ('000)                                           Total
                                                                                                shares   shares                  g
      Infratek ASA, and promote further development of the         Oslo Kommune                 67.525   37.343   104.868   53,7 %
      former Technical Services profit centers through active      Fortum Forvaltning AS        37.853   28.706    66.559   34,1 %
      ownership.                                                   Østfold Energi AS             5.201       4      5.205    2,7 %
                                                                   MP Pensjon                             1.564     1.564    0,8 %
                                                                   State Street Bank and
                                                                                                    6     1.433     1.439    0,7 %
      > Decision by Court of Appeal                                Trust Co
                                                                   JP Morgan Chase Bank                   1.069     1.069    0,5 %
      On 29 June 2007, a Norwegian Court of Appeal ruled in
                                                                   Fidelity Funds                          675       675     0,3 %
      favor of Hafslund Nett AS in a tax matter heard earlier in
                                                                   State Street Bank and
      June. The case involves a decision by the tax appeal                                                 600       600     0,3 %
                                                                   Trust Co
      board regarding the company’s allocation of goodwill in      BNP Paribas Sec. Services
                                                                                                     -     500       500     0,3 %
      the purchase amount paid for Network activities acquired     Paris
                                                                   JP Morgan Chase Bank              -     362       362     0,2 %
      in 2001. In its 2001 tax return, Hafslund Nett reported
                                                                   Total 10 largets            110.585   72.256   182.841   93,7 %
      goodwill for taxation purposes of NOK 441 million. The
                                                                   Other shareholders            4.843    7.502    12.345    6,3 %
      tax appeal board determined that the value of goodwill
      was NOK 116 million and the value of the grid license was    Total                       115.428   79.758   195.186    100 %

      NOK 325 million. Hafslund brought the matter before Oslo
      municipal court, which ruled in favor of Hafslund in June
                                                                   Hafslund had 7,344 shareholders as of 28 September
      2005. Norway’s corporate tax office appealed the
                                                                   2007. The ten largest shareholders own a total of 93.7
      decision to the Court of Appeal. The government
                                                                   percent of the company’s share capital. Hafslund stock is
      appealed the court’s decision; the Appeal Committee of
                                                                   listed on the Oslo Stock Exchange. As of the close of the
      the Supreme Court has agreed to have the case heard by
                                                                   third quarter of 2007, Hafslund’s market capitalization
      Norway’s Supreme Court. The case will come before the
                                                                   was NOK 29.3 billion (HNA-share NOK 50.00 kroner and
      court in Week 8 of 2008.
                                                                   HNB-share NOK 50.50 kroner). For the first nine months of
                                                                   2007, the yield on Hafslund shares amounted to 40
                                                                   percent, including the NOK 3.5 billion in dividend
      > Proposed Norwegian government budget — change in           payments made in May. A total of 3.4 million shares
      hydropower taxation                                          traded in the third quarter of 2007; in the first nine
      The Norwegian government has proposed changes to the         months of the year, a total of 17.3 million Hafslund
      taxation of hydropower facilities that collectively          shares traded.
      constitute an increase in the so-called economic rent tax.
      Among the proposed modifications are raising the
      economic rent tax from 27 percent to 30 percent and
      removing the risk premium regarding nominative interest
      in calculating the applicable tax-free income. Further, it
      is proposed that the risk-free interest should correspond




10                                                                                             SHAREHOLDER REPORT HAFSLUND ASA
     Third-quarter 2007 report




                                                                     Hafslund records its REC investment at market value in its
      Outlook                                                        balance sheet. Thus, REC share-price fluctuations can
                                                                     significantly impact Hafslund’s reported profit.

      In the Board’s opinion, Hafslund is well prepared to meet      Hafslund has built a solid foundation — both commercially
      the challenges the Group will face. Targeting of               and financially — for continued growth.
      renewable energy, exploiting the Group’s comparative
      advantages as to operations and infrastructure building,
      and utilizing its market position in power and security,                         Oslo, 25 October 2007
      position Hafslund well to continue to develop its role as
                                                                                        Board of Directors
      one of Norway’s leading integrated energy corporations.
                                                                                          HAFSLUND ASA
      The Group will continue its efforts to offer more
      streamlined products and services, improve customer
      services, raise quality in all parts of the value chain, and
      provide more readily understood products. This approach
      also reinforces the Group’s reputation. Going forward,
      the Board will specifically monitor efforts in these areas.
      The Group will continue efforts to achieve further
      operational efficiency and capital optimization by further
      developing and strengthening the Group’s existing
      business units.

      Earnings in the Network business are expected to
      decrease as a result of the new regulatory regime,
      introduced in 2007, governing power distribution
      companies in Norway. The profit performance of the
      Group’s Power Generation business is to a great degree
      subject to power-market price developments and
      prevailing weather conditions affecting the drainage
      basins tapped by Hafslund’s hydropower plants. Hafslund
      are exposed to spot prices and are well positioned to
      forward prices at Nord Pool to be delivered in 2008-2010.

      The planned listing of Technical Services on Oslo Stock
      Exchange will strengthen the basis for continued positive
      value creation for Hafslund ASA shareholders. The
      Group’s other profit centers are well positioned to
      continue to develop favorably.




11                                                                                            SHAREHOLDER REPORT HAFSLUND ASA
     Third-quarter 2007 report




      Group profit and loss account


               Third quarter                                                                                YTD                     Year

                  2006              2007 NOK million                                                     2007              2006            2006

                 2,308              1,667 Operating revenues                                            6,527          7,692           10,796
                 1,199              1,314 Gain/loss financial items                                    10,491          9,252           10,883
                (1,150)             (758) Purchased materials and energy                               (3,391)        (4,289)         (6,106)
                  (262)             (298) Salaries and other personnel expenses                         (948)              (808)      (1,200)
                  (195)             (183) Other operating expenses                                      (618)              (590)           (893)

                 1,901              1,742 Operating profit before depreciation                         12,060         11,257           13,480

                  (200)             (231) Depreciation                                                  (629)              (545)           (740)

                 1,701              1,511 Operating profit                                             11,431         10,712           12,740

                     (85)           (117) Net financial items                                           (293)              (259)           (360)

                 1,616              1,394 Profit before tax and discontinued operations                11,139         10,453           12,380

                  (161)              (47) Tax                                                           (315)              (489)           (730)
                        -                - Profit discontinued operations                                    -                 -               -

                 1,454              1,346 Profit after tax                                             10,823          9,964           11,650

                 1,454              1,348 Majority's share of profit                                   10,818          9,967           11,658
                       0               (2) Minority's share of profit                                       5                (3)             (8)
                    7.45             6.90 Earnings per share (in NOK)                                   55.45          51.05            59.69




      Group balance sheet



      NOK million                                                                         30/09/2007         30/09/2006            31/12/2006

      Intangible assets                                                                        2,635               2,064                2,098
      Fixed assets                                                                           17,582               14,298               14,362
      Financial assets                                                                       18,229               11,518               12,966
      Accounts receivable and inventory                                                        1,619               1,855                2,423
      Cash and cash equivalents                                                                  97                 366                 1,119

      Assets                                                                                 40,163               30,101               32,969

      Equity, majority                                                                       25,296               15,881               17,553
      Equity, minority                                                                           45                  20                      21
      Allocations for liabilities                                                              2,734               1,968                2,082
      Other long-term debt                                                                     7,268               6,193                7,023
      Short-term liabilities                                                                   4,820               6,038                6,289

      Equity and liabilities                                                                 40,163               30,101               32,969




12                                                                                                         SHAREHOLDER REPORT HAFSLUND ASA
     Third-quarter 2007 report




      Group cash flow statement


                                                               Third quarter                            YTD                       Year

      NOK million                                                2007            2006                 2007             2006       2006

      Profit before tax                                         1,424           1,616               11,169        10,454        12,380
      Items without cash flow effect                           (1,130)         (1,000)             (10,248)       (9,188)      (10,692)
      Change in net working capital                                16             (47)                 489              140       (242)

      Cash flow from operations (A)                               310             569                1,410         1,406         1,446

      Investments (operation and expansion)                     (338)           (268)               (2,966)            (693)    (1,128)
      Sale of assets including business segments                     -             42                   22               42        407
      Venture investments etc                                      (5)             21                4,810              101         53

      Cash flow to investments activities (B)                   (343)           (205)                1,866             (550)      (668)

      Change interest-bearing liabilities                       (140)           (413)                 (823)            (269)       571
      Dividend and other equity changes                           (18)               -              (3,475)            (487)      (496)

      Cash flow used for financial activities ( C)              (158)           (413)               (4,298)            (756)        75

      Cash flow in the period (A+B+C)                           (191)             (49)              (1,022)             100        853
      Cash at beginning of periode                                288             415                1,119              266        266

      Cash at end of periode                                       97             366                   97              366      1,119




      Equity reconciliation


                                                                                             YTD                                  Year

      NOK million                                                                          2007                2006               2006

      Equtiy as of 1 January                                                             17,575                6,417             6,417
      Profit for the period, majority's share                                            10,825                9,967            11,658
      Profit for the period, minority's share                                                 5                  (3)                (8)
      Change, minority's interests                                                           19                  10                 16
      Adjustments booked to equtiy                                                           (3)                  6                  6
      Value adjustment to equity at transition to subsidiary                                354                    -
      Changes in class A and B shares held (treasury shares)                                (21)                 (4)               (30)
      Dividend                                                                           (3,458)               (439)              (439)
      Other changes affecting equtiy                                                         45                 (52)               (45)

      Equtiy at end of reporting period                                                  25,341               15,902            17,575




13                                                                                                     SHAREHOLDER REPORT HAFSLUND ASA
     Third-quarter 2007 report




      Notes to the accounts

      1) Framework and key accounting principles
      The third-quarter consolidated Group accounts, for the period ending 30 September 2007, have been prepared and
      presented in accordance with International Financial Reporting Standards (IFRS). The consolidated accounts comprise those
      of Hafslund ASA and its associated companies and subsidiaries. Hafslund prepares and presents its quarterly consolidated
      accounts according to IAS 34, Interim Financial Reporting. The information provided by quarterly accounts is not as
      comprehensive as that provided in the annual accounts; thus, the quarterly accounts should be viewed in conjunction with
      the 2006 annual accounts. Accounting principles applied in the quarterly accounts are the same as those described in Note 1
      to the 2006 annual accounts of the Hafslund Group.

      2) Operating profit — significant items
      Value growth on Hafslund’s ownership interest in REC represents a significant investment for the Group. Going forward,
      Hafslund’s profit performance may be significantly affected by REC share price developments. In the first nine months of
      2007, the value of the Group’s REC shareholding increased by NOK 9.5 billion; as of 30 September 2007, the REC investment
      is recorded in the Group’s balance sheet at NOK 17.5 billion. Value growth on the REC shareholding is reported in the profit
      and loss account as Profit, financial assets and associated companies.

      3) Business segments reporting
              Third quarter                                                                       YTD                    Year

              2006            2007 NOK million                                                 2007           2006              2006

               377             156 Power generation                                              532           926           1,234
                 2               43 Heat                                                         353            23                31
               679             656 Network                                                     2,310          2,418          3,305
                78               65 Telecom                                                      240           140               229
               272             337 Technical services                                            947           772           1,139
               901             423 Power sales                                                 2,204          3,376          4,852
                62               65 Residential security                                         196           191               256
                 4               70 Venture                                                      155            16                53
               (67)           (149) Other activities/eliminations                              (410)          (170)             (304)

             2,308            1,667 Total operating revenue                                    6,527          7,692         10,796

               250             110 Power generation                                              386           704               995
                (4)            (63) Heat                                                        (11)            29                35
               122               70 Network                                                      345           545               628
                16                7 Telecom                                                       14            25                29
                36               29 Technical services                                            57            61                91
                18               37 Power sales                                                  223           101               175
                13               10 Residential security                                           9            28                13
             1,262            1,293 Venture                                                   10,336          9,233         10,542
               (12)              19 Other activities/eliminations                                 73           (14)              233

             1,701            1,511 Total operating profit                                    11,431         10,712         12,740



      4) Interest-bearing loans and credit facilities
      Hafslund has assumed a NOK 800 million loan from DEPFA BANK plc. The loan, which has a five-year term to maturity, will be
      used for refinancing purposes. The terms of the loan are highly competitive.




14                                                                                               SHAREHOLDER REPORT HAFSLUND ASA
     Third-quarter 2007 report




      As of 30 September 2007, the accounting value of Hafslund’s loan portfolio is NOK 9,988 million, of which NOK 6,782 million
      is long-term debt, NOK 1,873 million is classified as current liabilities maturing over the next twelve months, and NOK 1,333
      million is short-term debt.

      Changes in the fair value of loans and derivatives in the third quarter of 2007 had a NOK 19 million (year-to-date NOK 139
      million) positive impact on profit, largely attributable to an increase in market interest rates (including credit spread
      payable by Hafslund) of 90 basis points for shorter terms to maturity and 10 basis points for longer terms to maturity (year-
      to-date: 180 basis points for shorter terms to maturity and 85 basis points for longer terms to maturity). Changes in the fair
      value of loans, NOK 23 million, are recorded in the profit and loss account as Financial expenses, whereas changes in the
      value of interest derivatives, NOK 4 million, are recorded in the profit and loss account as Profit, financial assets and
      associated companies. Of the total loan and derivatives portfolio, fixed-interest loans amounted to 35 percent, and floating-
      interest-rate loans made up the remaining 65 percent. There are no financial covenants associated with the Group’s loan
      portfolio.

      5) Operating assets
      As of the third quarter of 2007, a total of NOK 3,851 million had been invested in operating assets. Of this amount, NOK 953
      million is invested in ordinary operating investments, and NOK 2,898 million is invested in operating assets acquired through
      corporate acquisitions.

      6) Corporate acquisitions and disposals
      Effective 2 January 2007, Hafslund acquired the City of Oslo’s 67 percent ownership interest in the district heating provider
      Viken Fjernvarme AS; Hafslund already held the remaining 33 percent of Viken Fjernvarme shares. The shares were
      transferred at a price of NOK 1,976 million. The City of Oslo is Hafslund ASA’s largest shareholder, so the acquisition
      represents a transaction with a closely related party.

      NOK million

      Cash payment                                                                                                             1,976
      Direct acquisition costs                                                                                                    12
      Acguisition cost of 67% of shares                                                                                        1,988
      Book value, associated company, 33% of shares                                                                              361
      Value adjustment to equity at transition to subsidiary                                                                     354
      Total                                                                                                                    2,703
      Fair value, acquried net assets                                                                                          2,165
      Goodwill                                                                                                                   538


                                                                                                                 Book value, acquired
      NOK million                                                                             Fair value
                                                                                                                             company
      Cash and cash equivalents                                                                     32                             32
      Property, plant and equipment                                                              2,891                         1,223
      Accounts receivable and other receivables                                                     80                            80
      Accounts payable and other current liabilities                                              (254)                         (254)
      Pension liabilities                                                                           (4)                           (4)
      Loans                                                                                       (100)                         (100)
      Deferred tax benefit/(deferred tax)                                                         (480)                          (13)
      Acquired net assets                                                                        2,165                           964



      The consolidation of Viken Fjernvarme as of 2 January 2007 resulted in a NOK 339 million increase in third-quarter 2007
      operating revenues and a NOK 4 million decrease in operating profit, compared with the third quarter of 2006.




15                                                                                                 SHAREHOLDER REPORT HAFSLUND ASA
     Third-quarter 2007 report




      Group key figures – quarterly reporting

      Profit and loss account



      NOK million                                        3Q07         2Q07         1Q07         4Q06        3Q06           2Q06          1Q06          4Q05       3Q05

      Operating revenues                                 1,667        2,041        2,819        3,104      2,308          2,386         2,997         2,394      1,837
      Gain/loss financial items                          1,314        6,601        2,576        1,632      1,199          7,215           838           182        141
      Purchased materials and energy                     (758)        (988)    (1,645)     (1,817)        (1,150)        (1,262)       (1,878)       (1,446)      (783)
      Salaries and other personnel expenses              (298)        (321)        (329)        (392)       (262)          (271)         (275)         (359)      (225)
      Other operating expenses                           (183)        (224)        (211)        (303)       (195)          (194)         (200)         (134)      (216)

      Operating profit before depreciation               1,742        7,109        3,210        2,224      1,901          7,873         1,482           638        754

      Depreciation                                       (231)        (198)        (200)        (196)       (200)          (175)         (169)         (183)      (163)

      Operating profit                                   1,511        6,911        3,010        2,028      1,701          7,698         1,313           454        591

      Financial expenses                                 (117)         (56)        (120)        (101)           (85)        (89)          (85)         (120)       (96)
      Profit before tax and discontinued
                                                         1,394        6,855        2,890        1,927      1,616          7,610         1,228           334        495
      operations
      Tax                                                 (47)        (128)        (140)        (241)       (161)          (170)         (157)          (84)      (139)
      Profit discontinued operations                         -            -            -            -              -              -            -          2         (6)

      Profit after tax                                   1,346        6,727        2,750        1,686      1,454          7,439         1,071           251        351

      Majority's share of profit                         1,348        6,722        2,748        1,691      1,454          7,442         1,071           250        351
      Minority's share of profit                           (2)           5            2           (5)             0             (2)        (1)            2         (0)
      Earnings per share (in NOK)                         6.90        34.46        14.09         8.64           7.45      38.11           5.49         1.29        1.80




      Balance sheet


      NOK million                             30.09.07   30.06.07     31.03.07      31.12.06      30.09.06        30.06.06        31.03.06         31.12.05    30.09.05

      Intangible assets                         2,635      2,662         2,660         2,098            2,064           2,059          2,024         1,995       1,973
      Fixed assets                             17,582     17,436        17,264        14,362        14,298             14,288         14,260        14,283      14,272
      Financial assets                         18,229     16,913        10,405        12,966        11,518             10,282          3,138         1,846       1,539
      Accounts receivable and inventory         1,619      1,580         2,243         2,423            1,855           1,800          2,818         2,383       2,090
      Cash and cash equivalents                    97        288         4,684         1,119             366             415            406            266         109

      Assets                                   40,163     38,880        37,259        32,969        30,101             28,843         22,646        20,773      19,982

      Equity, majority                         25,296     23,967        20,652        17,553        15,881             14,416          7,456         6,406       6,143
      Equtiy, minority                             45            30           23           21             20              19             19             13          11
      Allocations for liabilities               2,734      2,730         2,672         2,082            1,968           1,900          1,930         1,944       1,841
      Other long-term debt                      7,268      7,625         6,715         7,023            6,193           6,199          7,048         7,594       7,652
      Short-term liabilities                    4,820      4,527         7,197         6,289            6,038           6,309          6,192         4,815       4,336

      Equity and liabilities                   40,163     38,880        37,259        32,969        30,101             28,843         22,646        20,773      19,982




16                                                                                                                         SHAREHOLDER REPORT HAFSLUND ASA
     Third-quarter 2007 report




      Cash flow statement



      NOK million                                     3Q07     2Q07     1Q07     4Q06      3Q06      2Q06     1Q06

      Profit before tax                              1,424    6,855    2,890    1,927      1,616     7,610    1,228
      Item without cashflow effect                   -1,130   -6,562   -2,556   -1,504    -1,000    -7,263     -925
      Change in net working capital                     16     -106      579     -382        -47      535      -348

      Cash flow from operations (A)                    310      187      913       41       569       882       -45

      Investments (operation and expansion)           -338     -345    -2,283    -434       -268      -305     -120
      Sale of assets including business segments         0       22        0      365        42         0        0
      Venture investments etc                            -5      71    4,744       -48       21        62       18

      Cash flow to investments activities (B)         -343     -252    2,461     -117       -205      -243     -102

      Change interest-bearing liabilities             -140     -874      191      838       -413      -143     287
      Dividend                                          -18   -3,457       0        -9                -487

      Cash flow used for financial activities ( C)    -158    -4,331     191      829       -413      -630     287

      Cash flow in the period (A+B+C)                 -191    -4,396   3,565      753        -49        9      140
      Cash at beginning of period                      288    4,684    1,119      366       415       406      266

      Cash at end of period                             97      288    4,684    1,119       366       415      406




17                                                                                       SHAREHOLDER REPORT HAFSLUND ASA
     Third-quarter 2007 report




      Business segments reporting



      NOK million                            3Q07    2Q07    1Q07    4Q06    3Q06    2Q06    1Q06    4Q05    3Q05

      Power generation                        156     160     216     308     377     291     258     224     215
      Heat                                     43      68     241       8       2       5      16      10       2
      Network                                 656     831     823     887     679     813     926     924     836
      Telecom                                  65      87      87      89      78      39      23      17      18
      Technical services                      337     304     306     367     272     251     249     319     258
      Power sales                             423     602    1,180   1,476    901     971    1,504    930     522
      Residential security                     65      66      65      66      62      62      67      87      67
      Venture, ass. comp., financial items     70      55      30      37       4      12        -       -       -
      Other activities/eliminations          (149)   (131)   (130)   (134)    (67)    (56)    (47)   (117)    (81)

      Total sales income                     1,667   2,041   2,819   3,104   2,308   2,386   2,997   2,394   1,837

      Power generation                        121     121     177     305     261     245     227     137     164
      Heat                                     (8)     (1)     96       7      (3)      6      28      15      (7)
      Network                                 189     281     249     211     250     331     349     359     426
      Telecom                                  17      15      14      11      26      14       9       4       6
      Technical services                       34      22      16      37      44      19      16      27      32
      Power sales                              39      68     122      76      21      38      49      15      10
      Residential security                     25      20      10       7      22      13      18       9      16
      Venture, ass. comp., financial items   1,296   6,519   2,525   1,310   1,262   7,189    784     165     113
      Other activities/eliminations            30      64       0     261      17      19       2     (93)     (5)
      Total operating profit before
                                             1,742   7,109   3,210   2,224   1,901   7,873   1,482    638     754
      depreciation
      Power generation                        110     110     166     291     250     236     218     121     155
      Heat                                    (63)    (23)     74       6      (4)      5      27      15      (8)
      Network                                  70     155     120      83     122     202     221     229     297
      Telecom                                   7       4       4       3      16       6       3      (0)      3
      Technical services                       29      17      12      31      36      14      11      24      32
      Power sales                              37      66     120      73      18      36      47       9       9
      Residential security                     10       5      (6)    (15)     13       4      11       6      10
      Venture, ass. comp., financial items   1,293   6,519   2,524   1,309   1,262   7,187    784     165     113
      Other activities/eliminations            19      58      (5)    247     (12)      8      (9)   (115)    (20)

      Total operating profit                 1,511   6,911   3,010   2,028   1,701   7,698   1,313    454     591




18                                                                                     SHAREHOLDER REPORT HAFSLUND ASA
     Third-quarter 2007 report




      Description of profit centers

      > The Group                                                           highway and street lighting, and building construction. Total
      The Hafslund Group is Norway’s leading integrated energy              deliveries encompass electrical, telecom, and IT installations, as
      corporation and security services provider, and one of the largest    well as technical security solutions and guard services for the
      listed energy groups in the Nordic countries. The Group operates      corporate market.
      almost entirely in the Norwegian market. The Hafslund Group
                                                                            > Power Sales
      reports its activities in accordance with the following division
                                                                            Hafslund’s Power Sales business, which sells electric power to
      into business segments.
                                                                            residential-market and corporate customers, comprises the
      > Power Generation                                                    companies Hafslund Strøm, NorgesEnergi, Fredrikstad Energisalg,
      Hafslund owns and operates nine riverine power works located on       Hallingkraft (76 percent owned by Hafslund), and Røyken Kraft
      the lower Glomma and Lågen waterways. Total mean annual               (51 percent ownership). At year-end 2006, Power Sales had
      generation is 2,949 GWh (million kilowatt hours). Hafslund’s          613,000 power customers, of whom 565,000 were retail power
      power generation is dependent on the waterways' influx of             customers. The total volume of power sold in 2006 was 11,242
      water; reservoir capacity amounts to about 16 percent of annual       GWh, of which 7,957 GWh was sold to residential customers.
      influx.
                                                                            > Residential Security
      > Heat                                                                The Residential Security (Sikkerhet Privat) business sells and
      Hafslund’s Heat business is Norway’s largest supplier of district     operates residential alarm systems. As of 30 September 2007,
      heating. Heat comprises Viken Fjernvarme AS, a company that in        Residential Security had about 77,000 customers.
      2006 distributed district heating corresponding to 1,015 GWh to
                                                                            > Venture
      3,400 customers in the Oslo region, and Hafslund Fjernvarme,
                                                                            Hafslund Venture develops investments and projects for the
      which provides district heating in Gardermoen to Oslo
                                                                            Group in areas closely related to Hafslund’s activities, first and
      international airport and Gardermoen business park. Construction
                                                                            foremost in renewable energy and energy-related services and
      of a new biofuel facility in Fredrikstad with an annual production
                                                                            technologies. Hafslund Venture owns 14.3 percent of the listed
      capacity of some 160 GWh is due to be completed around year-
                                                                            solar power company Renewable Energy Corporation ASA.
      end 2007/early 2008. A 30 MW power plant fueled by residual
      waste is planned for Borregaard’s industrial site in Sarpsborg, for
                                                                            > Financial calendar
      completion in the first half of 2010.
                                                                            Fourth-quarter 2007 report — 8 February 2008
      > Network
      Hafslund’s Network business owns and operates local and               First-quarter 2008 report — 6 May 2008
      regional distribution systems located in the greater Oslo area and
      nearby counties and municipalities: Asker, Bærum, Oslo,               General Meeting — 6 May 2008
      Romerike, and parts of Follo and Østfold. Hafslund Network
      constitutes Norway’s largest grid company, with some 527,000          Second-quarter 2008 report — 17 July 2007
      grid customers.
                                                                            Third-quarter 2008 report — 28 October 2007
      > Telekom
      Hafslund Telekom is a supplier of dark fiber optic network access
      to broadband operators, municipalities, and businesses and
                                                                            > Addresses
      industry in the Oslo Fjord region, as well as operational services
      for remote reading and management of energy consumption.              Hafslund ASA
      Hafslund Telekom owns and leases approximately 1,995
      kilometers of fiber optic network.                                    Drammensveien 144, Skøyen

                                                                            N-0247 Oslo, Norway
      > Technical Services
      Technical Services comprises six independent units: contracting,      Tel: + 47 22 43 50 00, Fax: + 47 22 43 51 69
      installation, security technology, electrical safety, Lighting, and
                                                                            www.hafslund.no
      guard services. The companies are engaged in project-based
      activities in corporate markets for engineering, project              email: firmapost@hafslund.no
      management, development, construction, and maintenance of
      electrical infrastructure. Projects include power distribution,




19                                                                                                      SHAREHOLDER REPORT HAFSLUND ASA

				
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