Elmera Group ASA

Earnings Release • Feb 14, 2019

Fjordkraft Holding ASA: Q4 2018 results

Fjordkraft Holding ASA: Q4 2018 results

The fourth quarter results will be presented as the first part of the capital markets day, starting 14 February 2019 09:00 CET at Felix Konferansesenter, Oslo. The presentation will be held in English and will be webcasted at http://webtv.hegnar.no/presentation.php?webcastId=97603182

Q4 Highlights:

• Adjusted net revenue of 305 NOKm, representing 15% YoY growth

• Adjusted EBIT of 107 NOKm, up 12% YoY

• 14% YoY growth in number of electricity deliveries, of which 2 % organic

• Gross revenue increasing +55% YoY, reflecting volume growth and significantly higher elspot prices than last year (+56%)

• The Oppdal and Etne acquisitions successfully implemented during Q4 2018

Strong performance in a competitive quarter

The fourth quarter of 2018 was another quarter affected by extreme weather conditions. In October, several locations in the Western part of Norway experienced from 200-250% of normal precipitation levels. This resulted in temporary local area prices as low as 0.06 NOK/MWh in the middle of October. Throughout the rest of the quarter, electricity prices have been increasing, reaching a maximum system price of 0.64 NOK/MWh in the middle of December. The temperature has been higher than normal in three out of three months, having a slightly negative impact on volume sold in the quarter.

It has also been a quarter with intense competition. A lot of electricity suppliers have been active through the holiday season, offering special deals and discounts to win customers. Organic growth in the quarter amounted to 2,108 electricity deliveries in the Consumer and Business segments. YoY growth in number of deliveries in the Consumer and Business segments amounts to 14%, of which 2% organic, and the number of mobile subscriptions grew by 4,763 QoQ.

– We are very happy with reaching organic growth in a quarter as competitive as this, says CEO Rolf Barmen.

Due to Statnett’s Elhub project, which aims to streamline information flow between the different players in the industry, the roll-out of the Extended Alliance concept is at a temporary halt until the 1 May 2019. This has a limited impact on the Group’s financial results.

For queries, please contact:

Morten A. W. Opdal, Head of Controlling and Investor Relations, +47 970 62 526