Quarterly Report • Jul 17, 2015
Quarterly Report
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Arise AB (publ), Box 808, 301 18 Halmstad, tel. +46 (0) 35 20 20 900, Corporate Identity Number 556274-6726 E-mail: [email protected], www.arise.se
About Arise
Arise is one of Sweden´s leading wind power companies, with the business concept to develop, build and manage onshore wind farms for its own account and on behalf of investors. The Company is listed on NASDAQ OMX Stockholm.
An agreement was signed with KumBro Vind AB relating to the sale of the wind farm project Ryssbol, 12 MW, as well as management of the same once operational. Construc‐ tion is scheduled to begin in November 2015 with commis‐ sioning 12 months thereafter. This marks the second transaction with KumBro which is very pleasing. Including this transaction, the Company now manages nearly 460 MW of which approx. 200 MW on behalf of external cus‐ tomers.
The Company's crane has been sold to Mammoet, which contributed positively to the quarterly result. Mammoet is one of the world's largest crane companies and through an agreement we have also secured crane capacity for future installations.
Power production in the quarter was strong at approx. 27 % above plan. In total, 178 GWh, or 40% above the corre‐ sponding quarter last year (127 GWh).
Due to price hedges, average income came in at 469 SEK/MWh compared to the corresponding market price of (SE 4) of 360 SEK/MWh.
Construction of the Brotorp wind farm (46 MW), sold to BlackRock, is progressing according to plan and so is the management of wind farms Arise is performing for exter‐ nal customers. Negotiations relating to the sale of operat‐ ing as well as construction assets are ongoing in accord‐ ance with the Company's strategy.
Power prices continue to be weak. The announcement of early decommissioning of some of the older nuclear power plants is, however, positive but the total income is current‐ ly too low to realise the build‐out of renewable power as agreed between Sweden and Norway. In order for the build‐out to regain momentum it is of utmost importance that politicians implement decisions on necessary quota adjustments and that the price of electricity certificates increase from today's levels.
Decisions regarding the proposed quota increase and in‐ creased ambition in the system has been delayed until this autumn/winter. This is unfortunate as it creates uncertain‐ ty among investors and causes delays in investment deci‐ sion for new projects. However, policy makers signal that the decisions will be taken although at a later date than what was previously planned.
The Company continues to follow the communicated strategy with the target of selling up to 20 MW of operat‐ ing wind farms as well as 35 to 100 MW of construction‐ ready wind farms to be built for external customers. The goal is to increase the number of MWs under management further.
Halmstad, July 17, 2015 Peter Nygren CEO Arise AB (publ)
Total electricity production amounted to 178 GWh, which is 40% higher than the previous year's level at 127 GWh. Quarterly production development is shown in the graph below.
Total production includes both Own (including leases) and Co‐owned production
The segments Own and Co‐owned wind power produc‐ tion are reported excluding internal interest expenses on shareholder loans. The corresponding interest in‐ come has reduced net financials in the segment Wind power development. The shareholders loans incur in‐ terest of approximately 6% and the amounts are report‐ ed in Note 5.
Production from the Company's wholly owned wind farms amounted to 106 (71) GWh during the quarter, an increase of 50%, or approximately 36 GWh, compared to the corresponding quarter last year.
The Company's average sales price for electricity amounted to SEK 307 (329) per MWh, which is 43% in excess of the market price (SE 4, Nord Pool Spot) for the same period (SEK 215 per MWh). Price hedging also contributed to the Company's average sales price for certificates coming in at SEK 162 (187) per MWh, or 12% over the market price (SKM) in the same period (SEK 145 per MWh).
The increase in production of 50% increased net sales by MSEK 18, while the lower average price reduced net sales by MSEK 5 compared with the same quarter in 2014. In total, Own wind power operations generated revenues of MSEK 50 (37) and an EBITDA of MSEK 38 (23), a increase of 36% of revenues, respective 66% of EBITDA, compared with the second quarter 2014. Spe‐ cific operating costs amounted to SEK 108 (189) per MWh and the decrease is due, largely, to a higher level of production. Depreciation amounted to MSEK ‐24 (‐ 23). Net financial items was MSEK ‐19 (‐20), including a non‐cash charge of MSEK ‐4 relating to cancelled swaps. Consequently, the result for the quarter before tax was MSEK ‐6 compared with MSEK ‐21 in the previous year.
All amounts in the segment reporting refer to Arise's share of 50%, or MW 101.5, of the Jädraås project. Elec‐ tricity production during the second quarter amounted to 72 (56) GWh. Production was above plan due to stronger than normal winds.
The increase in production of 27% increased net sales by MSEK 8, while the lower average price reduced net sales by MSEK 2 compared with the same quarter in 2014. The segment generated revenue of MSEK 35 (29) and an EBITDA of MSEK 24 (20). Specific operating costs de‐ creased to SEK 153 (297) per MWh, largely due to a higher level of production. Depreciation and net finan‐ cial items amounted to MSEK ‐16 (‐16), respective MSEK ‐12 (‐12) and profit for the quarter before tax was MSEK ‐4 (‐7). Average revenue per MWh was SEK 485 (522) with SEK 308 (325) per MWh from electricity and SEK 177 (197) per MWh from electricity certificates. The increase in the result is largely due to higher production compared to the same quarter last year.
The chosen form of financing implies that the project's cash flow will benefit the owners first through interest payments and amortisation prior to dividends being paid from the project. During 2015, MSEK 3.5 was re‐ ceived during the first quarter and MSEK 0 during the second quarter.
All in all, revenues and EBITDA for Wind power devel‐ opment amounted to MSEK 24 (10), respective MSEK 8 (‐5) during the quarter. This increase was primarily due to the sale of the Company's crane and an increase in developer fees compared to the same quarter last year. Operating costs were MSEK 2 higher than last year, MSEK ‐19 compared with MSEK ‐17, due to a reservation charge. Net financial items improved to MSEK ‐5 (‐6) and profit/loss before taxes increased to MSEK 1 (‐14).
During May an agreement to sell the Company's crane to Mammoet was signed. The transaction contributed positively to the Company's result in the quarter and will be completed during July 2015. During the quarter the acquisition of the project Mombyåsen from E.ON Wind Sweden was finalised. Since autumn 2014, the Company has been working to finalise the project for construction and find a suitable investor. The intention is to sell the project to an investor during the year. In June, a conditional agreement was signed with KumBro Vind regarding the sale of the project Ryssbol, 12 MW. Start of construction is scheduled for November 2015. At the end of June a revolving credit facility agreement was signed of MSEK 50, of which MSEK 0 was utilised at the end of the quarter.
Net sales during the quarter amounted to MSEK 57 (37). Other operating income amounted to MSEK 15 (8) and total income amounted to MSEK 72 (44).
During the quarter, MSEK 2 (2) of work on own account was capitalised. The share of associated companies' profits amounted to MSEK ‐2 (‐4) and refers, in its en‐ tirety, to the 50% ownership of the Jädraås project, including interest on shareholder loans to the associated company (see note 2). Operating profit before deprecia‐ tion (EBITDA) amounted to MSEK 45 (14). The increase is due to a higher level of production due to stronger than normal winds, developer fees and the sale of the Com‐ pany's crane. In addition, the share of profits in associ‐ ated companies in the second quarter 2015 was ‐2 (‐4). Operating income (EBIT) amounted to MSEK 17 (‐12) including depreciation according to plan and write downs of MSEK ‐27 (‐26). Net financial income was MSEK ‐24 (‐27) including a non‐cash charge of MSEK ‐4 related to cancelled swaps. Profit/loss before tax amounted to MSEK ‐7 (‐39). Profit/loss after tax was MSEK ‐7 (‐33) which is equivalent to earnings per share of SEK ‐0.22 (‐0.98) both before and after dilution.
Net investments in property, plant and equipment for the quarter amounted to MSEK 12 (32) and the entire amount refers to investments in wind farms.
Cash flow from ongoing operations before changes in working capital amounted to MSEK 37 (9). Changes in working capital contributed with MSEK ‐4 (‐54) which resulted in cash flow from ongoing operations of MSEK 33 (‐45). Investments in property, plant and equipment totalled MSEK ‐12 (‐26) whereby cash flow after invest‐ ments amounted to MSEK 21 (‐70). Net long‐term and current interest‐bearing liabilities decreased cash flow by MSEK ‐60 (‐70). Interest of MSEK ‐21 (‐84) has been paid and interest of MSEK 1 (0) has been received. Net payments to and from blocked accounts has taken place in an amount of MSEK 0 (73), whereby cash flow for the quarter amounted to MSEK ‐59 (‐151).
Production from Own wind power operations during the first half year amounted to 228 GWh compared with last year's 196 GWh, an increase of 16% or approximately 32 GWh. The increase was due to stronger winds compared to last year.
The market price for electricity (SE 4) was lower during 2015 than in 2014, with an average price of SEK 245 (250) per MWh. Price hedging within the segment, Own wind power operations contributed to an average reve‐ nue for electricity of SEK 361 (408) per MWh, approxi‐ mately 47% over market price. Certificate prices were also lower during 2015 than in 2014. Thanks to positive price hedging, average revenue within the segment amounted to SEK 158 (219) per MWh or 7% higher than the average market price for the year, SEK 148 (179) per MWh.
The increase in production of 16% grew net sales by MSEK 20, while the lower average price reduced net sales by MSEK 25 compared with the equivalent first six months of 2014. All in all, Own wind power operations generated income of MSEK 119 (123) and an EBITDA of MSEK 96 (98), which implies decreased income and EBITDA by 4%, respective 3%, compared with 2014. Operating expenses amounted to SEK 101 (128) per MWh, a decrease of 21% which is primarily due to the Company's fixed operating costs being offset by a higher level of production. Depreciation and net financial in‐ come amounted to MSEK ‐49 (‐46), respective MSEK ‐40 (‐36), that is, somewhat higher compared with 2014 due to having a larger number of turbines in operation and a non‐cash charge relating to cancellation of swaps. Prof‐ it/loss before tax was MSEK 7 compared with MSEK 16 in the previous year.
Electricity production amounted to 177 (127) GWh, an increase of 39%. The segment generated income of MSEK 88 (68) and EBITDA of MSEK 66 (50). Specific op‐ erating costs were 124 SEK per MWh. Depreciation and net financial income amounted to MSEK ‐32 (‐31) and MSEK ‐24 (‐23), respectively, and profit/loss before taxes was MSEK 10, compared with MSEK ‐4 the previous year. Average income was SEK 497 (530) per MWh, divided between SEK 325 (336) per MWh for electricity and SEK 171 (194) per MWh for electricity certificates.
In total, income in the segment Wind power develop‐ ment amounted to MSEK 40 (15) during the six‐month period. The increase in income is primarily attributable to developer fees and the sale of the Company's crane. Operating expenses increased to MSEK ‐35 (‐33) due to a reservation charge of MSEK ‐2. EBITDA increased from MSEK ‐14 to MSEK 9. Write‐offs and depreciation were unchanged at MSEK ‐5 (‐5) and net financial income improved to MSEK ‐12 (‐14). All in all, this implies that profit/loss before taxes increased from MSEK ‐33 to MSEK ‐8.
Production within Own and Co‐owned wind power op‐ erations amounted to 406 (324) GWh during the six‐ month period, an increase of 25%.
Net sales amounted to MSEK 132 (123), and other oper‐ ating income was MSEK 21 (11). This implies that total income amounted to MSEK 153 (134), an increase of 14%.
Capitalised work on own account amounted to MSEK 5 (4) and the share of associated companies' prof‐ its/losses was MSEK 11 (‐1) and refers, in its entirety, to the Company's 50% share of the Jädraås project, includ‐ ing financial income on the contributed capital (see note 2). Total operating expenses decreased to MSEK ‐53 (‐ 54). This resulted in operating profit/loss before depre‐ ciation (EBITDA) of MSEK 115 (84). Operating profit (EBIT) amounted to MSEK 62 (33), including write‐offs and depreciation of MSEK ‐53 (‐51). Net financial in‐ come decreased to MSEK ‐52 (‐50), including a non‐cash charge of MSEK ‐8 relating to cancellation of swaps and a slight increase in turbines in operation resulting in profit/loss before tax amounting to MSEK 10 (‐17). Profit/loss after tax was MSEK 7 (‐16), which is equivalent to earnings per share of SEK 0.22 (‐0.49), both before and after dilution.
Net investments in property, plant and equipment amounted to MSEK 16 (98). The entire investment refers to the expansion of wind power production as planned.
Cash flow from operating activities before changes in working capital amounted to MSEK 92 (79). Changes in working capital decreased cash flow by MSEK ‐4 (‐39) resulting in a cash flow from operating activities of MSEK 88 (41). Investments in property, plant and equipment have been made in the amount of MSEK ‐16 (‐98) while cash flow after investments amounted to MSEK 72 (‐57). Non‐current and current interest‐bearing liabilities have decreased by MSEK ‐78 (‐22). Interest of MSEK ‐48 (‐115) has been paid and interest of MSEK 5 (10) has been received. Net payments to and from blocked accounts have been made in the amount of MSEK 0 (72), after which cash flow for the six‐month period amounted to MSEK ‐48 (‐112).
Interest‐bearing net liabilities amounted to MSEK 1,392 (1,600). The equity/assets ratio at the end of the period was 42.4 (39.6) percent. Cash and cash equivalents amounted to MSEK 110 (79) and unutilised credits re‐ mained of MSEK 50 (0) at the end of the period.
As Arise has only Swedish subsidiaries, tax has been calculated at the Swedish tax rate of 22.0 percent.
Considering the Group's possibilities of fiscal write‐off, it is deemed that no paid tax will be reported during the next few years.
During the period, there were no transactions with re‐ lated parties.
No changes have occurred in the Group's reported con‐ tingent liabilities. These are described on page 85 under Note 21 in the 2014 Annual Report.
There are no events to report.
The Company today holds a comprehensive project portfolio, comprising approximately 800 MW in Sweden as well as ongoing evaluations of several projects in Norway and Finland. In Scotland, preliminary planning is underway for projects comprising approximately 150 MW, for which the Company has signed lease agree‐ ments.
Negotiations regarding the divestment of operational (20 MW) and construction‐ready (35‐100 MW) projects are ongoing, in line with the Company's communicated strategy. The Company deems the opportunities to further strengthen its position on the Nordic market to be good. The Company is carefully following the devel‐ opment of the electricity and electricity certificate mar‐ ket. Decisions regarding level of ambition in the certifi‐ cate system as well as a quota adjustment is expected during the autumn of 2015.
The prices of electricity and certificates have continued to decline during the second quarter. The SEK has re‐ mained stable relative to the EUR and interest rates continue to be at historically low levels.
The Group's risks and factors of uncertainty are de‐ scribed on pages 49‐50 in the Annual Report for 2014, and financial risk management is presented on pages 76‐81. No significant changes impacting the reported risks have taken place.
The Parent Company has been re‐ sponsible for the primary activities of developing projects (identifying suitable wind locations, obtaining leases, producing consequence descriptions, producing zoning plans and obtaining building permits), sell projects to external investors, build new projects, handling the Group's trading operations in electricity and electricity certificates and carrying out administrative services internal‐ ly and externally.
The Parent Company manages the Group's production plans and elec‐ tricity hedging in accordance with the adopted finance policy. The electricity producing subsidiaries sell their electricity production to clients according to contractually agreed conditions and sell any sur‐ plus production to Arise at the spot price. Arise sells on the electricity on the spot market. These intra‐ Group trading activities are report‐ ed at gross value in the income statement. The Parent Company business includes also leasing of production plants. Wind turbines are leased from subsidiaries to be sub‐leased to external parties.
The Parent Company's total income during the quarter amounted to MSEK 209 (144) and purchased electricity and certificates, wind power rental, personnel and other external costs, capitalised work on own account as well as depreciation of fixed assets, totalled ‐214 (‐180), with operating profit (EBIT) amount‐ ing to MSEK ‐5 (‐35). Net financial income of MSEK ‐34 (10) and Group contributions of MSEK 67 (‐) result‐ ed in net profit/loss after tax of MSEK 22 (‐20). The Parent Compa‐ ny's net investments, excluding internal restructuring of subsidiar‐ ies, amounted to MSEK 1 (1,101).
A diagram illustrating the Compa‐ ny's ownership structure can be found on the Company's website (www.arise.se).
Arise follows IFRS (International Financial Reporting Standards) as adopted by the EU and interpreta‐ tions of such standards (IFRIC). This interim report has been prepared in accordance with IAS 34, "Interim Financial Reporting". The Parent Company's reporting has been pre‐ pared in accordance with the Annu‐ al Accounts Act and RFR2. The ac‐ counting principles are consistent with those applied in the most re‐ cent Annual Report for 2014, in which the principles are described in Note 1 on pages 58‐67.
The comparative figures for the previous year have been translated with respect to the following chang‐ es from 2014:
Development fees have been reclassified from other income to net sales and other remuneration from leasing operations has also been reclassified from other income to net sales. These reclassifications are intended to better reflect the Company's operations.
Reclassification has been imple‐ mented on the fair values of deriva‐ tive assets and derivative liabilities attributable to the Sirocco Group, which were previously reported at gross value, such that these are now reported at net value in the item Participations in associated compa‐ nies.
Financial income from the Sirocco Group which was previously report‐ ed under Financial income has been reclassified and is now included in the item Share of profits in associ‐ ated companies.
This report has not been subject to review by the Company's auditors.
The Board of Directors declare that this first half year, Interim Report, provides a true and fair view of the Company and Group operations, financial position and results as well as describing the risks and uncertainties faced by the Company and the companies included in the Group.
Halmstad, 17 July 2015
Arise AB (publ)
Joachim Gahm Maud Olofsson Peter Gyllenhammar Chairman Member of the Board Member of the Board
Jon G Brandsar Peter Nygren
Member of the Board CEO and Member of the Board
For further information, please contact
Peter Nygren, CEO Tel. +46 (0) 706 300 680 Linus Hägg, CFO Tel. +46 (0) 702 448 916
| 2015 | 2014 | 2015 | 2014 | 2014 | |
|---|---|---|---|---|---|
| (Amounts rounded off in MSEK) | Q2 | Q2 | 6 months | 6 months | Full year |
| Net sales | 57 | 37 | 132 | 123 | 254 |
| Other operating income Note 1 | 15 | 8 | 21 | 11 | 34 |
| Total income | 72 | 44 | 153 | 134 | 288 |
| Capitalised work on own account | 2 | 2 | 5 | 4 | 13 |
| Personnel costs | ‐10 | ‐10 | ‐21 | ‐21 | ‐39 |
| Other external expenses | ‐18 | ‐18 | ‐32 | ‐33 | ‐64 |
| Share in income of associated companies Note 2 | ‐2 | ‐4 | 11 | ‐1 | ‐1 |
| Operating profit before depreciation (EBITDA) | 45 | 14 | 115 | 84 | 197 |
| Depreciation of property, plant and equipment Note 4,7 | ‐27 | ‐26 | ‐53 | ‐51 | ‐106 |
| Operating profit (EBIT) | 17 | ‐12 | 62 | 33 | 91 |
| Financial income | 1 | 0 | 2 | 1 | 1 |
| Financial expenses | ‐25 | ‐27 | ‐53 | ‐51 | ‐117 |
| Profit/loss before tax | ‐7 | ‐39 | 10 | ‐17 | ‐24 |
| Deferred tax | 0 | 6 | ‐3 | 1 | ‐1 |
| Net profit/loss for the period | ‐7 | ‐33 | 7 | ‐16 | ‐25 |
| Earnings per share before dilution. SEK | ‐0.22 | ‐0.98 | 0.22 | ‐0.49 | ‐0.75 |
| Earnings per share after dilution. SEK | ‐0.22 | ‐0.98 | 0.22 | ‐0.49 | ‐0.75 |
Treasury shares held by the Company have not been included in calculating Earnings per share.
| 2015 | 2014 | 2015 | 2014 | 2014 | |
|---|---|---|---|---|---|
| (Amounts rounded off in MSEK) | Q2 | Q2 | 6 months | 6 months | Full year |
| Net profit/loss for the period | ‐7 | ‐33 | 7 | ‐16 | ‐25 |
| Other comprehensive income Note 6 | |||||
| Items which can be reclassified in the income statement | |||||
| Cash flow hedges | 18 | ‐27 | 21 | ‐37 | ‐70 |
| Translation differences | ‐2 | 4 | ‐7 | 7 | 18 |
| Share of other compr. income in associated companies | 37 | 23 | 33 | 39 | 2 |
| Income tax attr. to components of other compr. income | ‐12 | 1 | ‐11 | ‐1 | 12 |
| Other comprehensive income for the period, net after tax | 41 | 0 | 37 | 7 | ‐38 |
| Total comprehensive income for the period | 34 | ‐33 | 44 | ‐9 | ‐63 |
Comprehensive income is 100% attributable to the shareholders of the Parent Company.
| 2015 | 2014 | 2014 | |
|---|---|---|---|
| (Summarised, amounts rounded off in MSEK) | 30 Jun | 30 Jun | 31 Dec |
| Property, plant and equipment | 2,135 | 2,407 | 2,209 |
| Financial fixed assets | 521 | 480 | 492 |
| Other current assets | 116 | 147 | 109 |
| Cash and cash equivalents | 110 | 79 | 157 |
| TOTAL ASSETS | 2,882 | 3,113 | 2,967 |
| Equity | 1,222 | 1,231 | 1,178 |
| Non‐current liabilities | 1,482 | 1,712 | 1,581 |
| Current liabilities | 178 | 170 | 208 |
| TOTAL EQUITY AND LIABILITIES | 2,882 | 3,113 | 2,967 |
| 2015 | 2014 | 2015 | 2014 | 2014 | |
|---|---|---|---|---|---|
| (Amounts rounded off in MSEK) | Q2 | Q2 | 6 months | 6 months | Full year |
| Cash flow from operating activities before changes in working capital |
37 | 9 | 92 | 79 | 185 |
| Cash flow from changes in working capital | ‐4 | ‐54 | ‐4 | ‐39 | ‐23 |
| Cash flow from operating activities | 33 | ‐45 | 88 | 41 | 162 |
| Investments in property, plant and equipment | ‐12 | ‐32 | ‐16 | ‐98 | ‐118 |
| Sales of property, plant and equipment | 0 | ‐ | 0 | ‐ | 97 |
| Investments in associated companies | ‐ | 6 | ‐ | ‐ | ‐ |
| Cash flow after investing activities | 21 | ‐70 | 72 | ‐57 | 140 |
| Change in interest‐bearing liabilities | ‐60 | ‐70 | ‐78 | ‐22 | ‐101 |
| Interest paid | ‐21 | ‐84 | ‐48 | ‐115 | ‐181 |
| Interest received | 1 | 0 | 5 | 10 | 43 |
| Net payment, blocked accounts | 0 | 73 | 0 | 72 | 65 |
| Cash flow from financing activities | ‐80 | ‐81 | ‐120 | ‐54 | ‐174 |
| Cash flow for the period | ‐59 | ‐151 | ‐48 | ‐112 | ‐34 |
| Cash and cash equivalents at the beginning of the period | 169 | 231 | 157 | 191 | 191 |
| Cash and cash equivalents at the end of the period | 110 | 79 | 110 | 79 | 157 |
| Interest‐bearing liabilities at the end of the period | 1,524 | 1,695 | 1,524 | 1,695 | 1,629 |
| Blocked cash at the end of the period | ‐22 | ‐16 | ‐22 | ‐16 | ‐23 |
| Interest‐bearing net liabilities | 1,392 | 1,600 | 1,392 | 1,600 | 1,449 |
| 2015 | 2014 | 2014 | |
|---|---|---|---|
| (Summarised, amounts rounded off in MSEK) | 30 Jun | 30 Jun | 31 Dec |
| Opening balance | 1,178 | 1,240 | 1,240 |
| Total comprehensive income for the period | 44 | ‐9 | ‐63 |
| Value adjustment of issued options | ‐ | ‐ | |
| Closing balance | 1,222 | 1,231 | 1,178 |
| 2015 | 2014 | 2015 | 2014 | 2014 | |
|---|---|---|---|---|---|
| Q2 | Q2 | 6 months | 6 months | Full year | |
| Operational key ratios | |||||
| Installed capacity at the end of the period, MW | 260.7 | 266.1 | 260.7 | 266.1 | 260.7 |
| Own electricity production during the period, GWh | 106.2 | 70.7 | 228.2 | 196.4 | 401.4 |
| Co‐owned electricity production during the period, GWh | 71.7 | 56.4 | 177.3 | 127.3 | 248.7 |
| Total electricity production during the period, GWh | 177.9 | 127.0 | 405.5 | 323.7 | 650.1 |
| Number of employees at the end of the period | 30 | 32 | 30 | 32 | 31 |
| Financial key ratios | |||||
| EBITDA margin, % | 61.8% | 30.9% | 75.0% | 62.4% | 68.4% |
| Operating margin, % | 24.1% | neg | 40.3% | 24.5% | 31.7% |
| Return on capital employed (EBIT), % | 4.6% | 3.3% | 4.5% | 3.4% | 3.4% |
| Adjusted Return on capital employed (EBITDA), % | 8.8% | 6.9% | 8.5% | 7.1% | 7.3% |
| Return on equity, % | neg | neg | neg | neg | neg |
| Capital employed, MSEK | 2,614 | 2,831 | 2,614 | 2,831 | 2,626 |
| Average capital employed, MSEK | 2,610 | 2,771 | 2,679 | 2,697 | 2,713 |
| Shareholders' equity, MSEK | 1,222 | 1,231 | 1,222 | 1,231 | 1,178 |
| Average shareholders' equity, MSEK | 1,205 | 1,248 | 1,197 | 1,235 | 1,216 |
| Interest‐bearing net liabilities | 1,392 | 1,600 | 1,392 | 1,600 | 1,449 |
| Equity/assets ratio, % | 42.4% | 39.6% | 42.4% | 39.6% | 39.7% |
| Interest coverage ratio | 0.7 | ‐0.4 | 1.2 | 0.7 | 0.8 |
| Debt/equity ratio | 1.1 | 1.3 | 1.1 | 1.3 | 1.2 |
| Equity per share, SEK | 37 | 37 | 37 | 37 | 35 |
| Equity per share after dilution, SEK | 37 | 36 | 36 | 36 | 35 |
| No. of shares at the end of the period, excl. treasury shares | 33,373,876 | 33,373,876 | 33,373,876 | 33,373,876 | 33,373,876 |
| Average number of shares | 33,373,876 | 33,373,876 | 33,373,876 | 33,373,876 | 33,373,876 |
| Average number of shares after dilution | 33,909,876 | 33,909,876 | 33,909,876 | 33,909,876 | 33,909,876 |
| Note 1 ‐ Other operating income | 2015 | 2014 | 2015 | 2014 | 2014 |
|---|---|---|---|---|---|
| (Amounts rounded off in MSEK) | Q2 | Q2 | 6 months | 6 months | Full year |
| Income from crane rental | 2 | 2 | 5 | 4 | 9 |
| Project management and administrative services | 3 | 6 | 6 | 7 | 9 |
| Profit from sale of fixed assets | 9 | ‐ | 9 | ‐ | 12 |
| Other items | 1 | 0 | 1 | 0 | 3 |
| 15 | 8 | 21 | 11 | 34 | |
| Note 2 – Share of profits in associated companies | 2015 | 2014 | 2015 | 2014 | 2014 |
| (Amounts rounded off in MSEK) | Q2 | Q2 | 6 months | 6 months | Full year |
| Share of profits in associated comp's (net after tax 22%) | ‐8 | ‐11 | ‐2 | ‐13 | ‐27 |
| Financial income from associated comp's (gross before tax) | 6 | 7 | 13 | 13 | 26 |
| ‐2 | ‐4 | 11 | ‐1 | ‐1 |
Financial income from associated companies is attributable to shareholder loans granted by the Company, which are consid‐ ered long‐term investments in an associated company and, therefore, is deemed to have the same characteristics as contribut‐ ed capital.
| Q2 | Own wind power operations |
Co‐owned wind power operations |
Wind power development |
Eliminations | Group | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| (Amounts rounded off in MSEK) | Q2‐15 | Q2‐14 | Q2‐15 | Q2‐14 | Q2‐15 | Q2‐14 | Q2‐15 | Q2‐14 | Q2‐15 | Q2‐14 |
| Net sales, external | 50 | 37 | 35 | 29 | 7 | ‐ | ‐35 | ‐29 | 57 | 37 |
| Net sales, internal | ‐ | ‐ | ‐ | ‐ | 2 | 2 | ‐2 | ‐2 | ‐ | ‐ |
| Other operating income Note 3 | 0 | ‐ | ‐ | ‐ | 15 | 8 | ‐ | ‐ | 15 | 8 |
| Total income | 50 | 37 | 35 | 29 | 24 | 10 | ‐37 | ‐31 | 72 | 44 |
| Capitalised work on own account | ‐ | ‐ | ‐ | ‐ | 2 | 2 | ‐ | ‐ | 2 | 2 |
| Operating expenses | ‐12 | ‐13 | ‐11 | ‐9 | ‐19 | ‐17 | 13 | 11 | ‐28 | ‐28 |
| Share of profits in associated companies | ‐ | ‐ | ‐ | ‐ | ‐ | ‐ | ‐2 | ‐4 | ‐2 | ‐4 |
| Operating profit before depr. (EBITDA) | 38 | 23 | 24 | 20 | 8 | ‐5 | ‐26 | ‐24 | 45 | 14 |
| Depreciation and write‐downs Note 4 | ‐24 | ‐23 | ‐16 | ‐16 | ‐3 | ‐2 | 16 | 16 | ‐27 | ‐26 |
| Operating profit (EBIT) | 14 | 0 | 8 | 5 | 5 | ‐8 | ‐10 | ‐9 | 17 | ‐12 |
| Net financial income/expense Note 5 | ‐19 | ‐20 | ‐12 | ‐12 | ‐5 | ‐6 | 12 | 12 | ‐24 | ‐27 |
| Profit/loss before tax (EBT) | ‐6 | ‐21 | ‐4 | ‐7 | 1 | ‐14 | 2 | 3 | ‐7 | ‐39 |
| Assets | 2,250 | 2,423 | 1,590 | 1,621 | 173 | 270 | ‐1,131 | ‐1,201 | 2,882 | 3 113 |
| Note 3 ‐ Other operating income Income from crane rental Development fees |
‐ ‐ |
‐ ‐ |
‐ ‐ |
‐ ‐ |
2 9 |
2 ‐ |
‐ ‐ |
‐ ‐ |
2 9 |
2 ‐ |
| Project management and adm. services | ‐ | ‐ | ‐ | ‐ | 3 | 6 | ‐ | ‐ | 3 | 6 |
| Other items | 0 | ‐ | ‐ | ‐ | 1 | 0 | ‐ | ‐ | 1 | 0 |
| 0 | ‐ | ‐ | ‐ | 15 | 8 | ‐ | ‐ | 15 | 8 | |
| Note 4 ‐ Depreciation and write‐downs of property, plant and equipment | ||||||||||
| Depreciation | ‐24 | ‐23 | ‐16 | ‐16 | ‐2 | ‐2 | 16 | 16 | ‐26 | ‐26 |
| Write‐downs and write down reversals | ‐ | ‐ | ‐ | ‐ | ‐1 | ‐ | ‐ | ‐ | ‐1 | ‐ |
| Depreciation and write‐downs | ‐24 | ‐23 | ‐16 | ‐16 | ‐3 | ‐2 | 16 | 16 | ‐27 | ‐26 |
| Note 5 ‐ Net financial income | ||||||||||
| Total net financial income | ‐20 | ‐22 | ‐18 | ‐18 | ‐4 | ‐4 | 18 | 18 | ‐24 | ‐27 |
| Less interest expenses on shareholder loans |
1 | 2 | 6 | 7 | ‐1 | ‐2 | ‐6 | ‐6 | ‐ | ‐ |
| Net financial income excl. shareholder loans |
‐19 | ‐20 | ‐12 | ‐12 | ‐5 | ‐6 | 12 | 12 | ‐24 | ‐27 |
Internal interest expenses on shareholder loans are no longer reported in the segments Own‐ and Co‐owned wind power operations. The corre‐ sponding item has been eliminated from the Wind power development segment.
| 6 months | Own wind power operations |
Co‐owned wind power operations |
Wind power development |
Eliminations | Group | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| (Amounts rounded off in MSEK) | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 |
| Net sales, external | 118 | 123 | 88 | 68 | 14 | ‐ | ‐88 | ‐68 | 132 | 123 |
| Net sales, internal | ‐ | ‐ | ‐ | ‐ | 5 | 4 | ‐5 | ‐4 | ‐ | ‐ |
| Other operating income Note 6 | 0 | ‐ | ‐ | ‐ | 21 | 11 | ‐ | ‐ | 21 | 11 |
| Total income | 119 | 123 | 88 | 68 | 40 | 15 | ‐93 | ‐71 | 153 | 134 |
| Capitalised work on own account | ‐ | ‐ | ‐ | ‐ | 5 | 4 | ‐ | ‐ | 5 | 4 |
| Operating expenses | ‐23 | ‐25 | ‐22 | ‐18 | ‐35 | ‐33 | 27 | 21 | ‐53 | ‐54 |
| Share of profits in associated companies | ‐ | ‐ | ‐ | ‐ | ‐ | ‐ | 11 | ‐1 | 11 | ‐1 |
| Operating profit before depr. (EBITDA) | 96 | 98 | 66 | 50 | 9 | ‐14 | ‐56 | ‐50 | 115 | 84 |
| Depreciation and write‐downs Note 7 | ‐49 | ‐46 | ‐32 | ‐31 | ‐5 | ‐5 | 32 | 31 | ‐53 | ‐51 |
| Operating profit (EBIT) | 47 | 52 | 34 | 19 | 4 | ‐19 | ‐24 | ‐19 | 62 | 33 |
| Net financial income/expense Note 8 | ‐40 | ‐36 | ‐24 | ‐23 | ‐12 | ‐14 | 24 | 23 | ‐52 | ‐50 |
| Profit/loss before tax (EBT) | 7 | 16 | 10 | ‐4 | ‐8 | ‐33 | 1 | 4 | 10 | ‐17 |
| Note 6 ‐ Other operating income | ||||||||||
| Income from crane rental | ‐ | ‐ | ‐ | ‐ | 5 | 4 | ‐ | ‐ | 5 | 4 |
| Development fees | ‐ | ‐ | ‐ | ‐ | 9 | ‐ | ‐ | ‐ | 9 | ‐ |
| Project management and adm. services | ‐ | ‐ | ‐ | ‐ | 6 | 7 | ‐ | ‐ | 6 | 7 |
| Other items | 0 | ‐ | ‐ | ‐ | 1 | 0 | ‐ | ‐ | 1 | 0 |
| 0 | ‐ | ‐ | ‐ | 21 | 11 | ‐ | ‐ | 21 | 11 | |
| Note 7 ‐ Depreciation and write‐downs of property, plant and | ||||||||||
| equipment | ||||||||||
| Depreciation | ‐49 | ‐46 | ‐32 | ‐31 | ‐4 | ‐5 | 32 | 31 | ‐53 | ‐51 |
| Write‐downs and write down reversals | ‐ | ‐ | ‐ | ‐ | ‐1 | ‐ | ‐ | ‐ | ‐1 | ‐ |
| Depreciation and write‐downs | ‐49 | ‐46 | ‐32 | ‐31 | ‐5 | ‐5 | 32 | 31 | ‐53 | ‐51 |
| Note 8 – Net financial income | ||
|---|---|---|
| Total net financial income | ‐41 | ‐42 | ‐37 | ‐36 | ‐11 | ‐8 | 37 | 36 | ‐52 | ‐50 |
|---|---|---|---|---|---|---|---|---|---|---|
| Less interest expenses on shareholder loans |
1 | 6 | 13 | 13 | ‐1 | ‐6 | ‐13 | ‐13 | ‐ | ‐ |
| Net financial income excl. shareholder loans |
‐40 | ‐36 | ‐24 | ‐23 | ‐12 | ‐14 | 24 | 23 | ‐52 | ‐50 |
All of the financial instruments measured at fair value belong to level 2 in the fair value hierarchy. These derivatives consist of electricity futures, currency futures and interest rate swaps. The valuation at fair value of the currency futures is based on pub‐ lished forward rates in an active market. The valuation of interest rate swaps is based on forward interest rates taken from ob‐ servable yield curves. The discounting results in no significant impact on the valuation of the derivatives at Level 2. The reporting of financial instruments is described on pages 76‐81 in the Annual Report for 2014. The Group's financial assets and liabilities measured at fair value as of the balance sheet date are illustrated in the table below.
| 2015 | 2014 | 2014 | |
|---|---|---|---|
| (Amounts rounded off in MSEK) | 30 Jun | 30 Jun | 31 Dec |
| Assets | |||
| Derivatives held for hedging purposes | |||
| ‐ Participations in associated companies | ‐25 | ‐21 | ‐44 |
| ‐ Derivative assets | 7 | 1 | 0 |
| Liabilities | |||
| Derivatives held for hedging purposes | |||
| ‐ Derivative liabilities | ‐61 | ‐27 | ‐79 |
| 2015 | 2014 | 2015 | 2014 | 2014 | |
|---|---|---|---|---|---|
| (Amounts rounded off in MSEK) | Q2 | Q2 | 6 months | 6 months | Full year |
| Sale of electricity and certificates | 38 | 12 | 109 | 66 | 159 |
| Leasing of wind farms | 26 | 27 | 71 | 71 | 139 |
| Sale of services, own employees | 4 | 2 | 8 | 4 | 9 |
| Development fees | 7 | ‐ | 14 | ‐ | 9 |
| Other operating income | 0 | 1 | 0 | 3 | 5 |
| Total income | 76 | 42 | 202 | 144 | 321 |
| Capitalised work on own account | 3 | 0 | 6 | 1 | 9 |
| Purchases of electricity and electricity certificates | ‐37 | ‐15 | ‐111 | ‐74 | ‐160 |
| Rental of wind power facilities | ‐26 | ‐27 | ‐71 | ‐71 | ‐139 |
| Personnel costs | ‐9 | ‐5 | ‐18 | ‐11 | ‐22 |
| Other external expenses | ‐8 | ‐6 | ‐12 | ‐23 | ‐35 |
| Operating profit/loss before depreciation (EBITDA) | ‐1 | ‐12 | ‐3 | ‐34 | ‐27 |
| Depreciation of property, plant and equipment | ‐1 | 0 | ‐2 | ‐1 | ‐4 |
| Operating profit/loss | ‐2 | ‐13 | ‐5 | ‐35 | ‐31 |
| Financial income | 8 | 18 | 17 | 34 | 63 |
| Financial expenses | ‐22 | ‐16 | ‐50 | ‐24 | ‐69 |
| Profit/loss after financial items | ‐17 | ‐11 | ‐39 | ‐26 | ‐36 |
| Group contribution | 52 | ‐ | 67 | ‐ | 66 |
| Profit/loss before tax | 35 | ‐11 | 28 | ‐26 | 29 |
| Income tax | ‐8 | 2 | ‐6 | 6 | ‐7 |
| Net profit/loss and total compr. income for the period | 28 | ‐8 | 22 | ‐20 | 23 |
| 2015 | 2014 | 2015 | 2014 | 2014 | |
|---|---|---|---|---|---|
| (Summarised, amounts rounded off in MSEK) | Q2 | Q2 | 6 months | 6 months | Full year |
| Property, plant and equipment | 82 | 79 | 82 | 79 | 90 |
| Financial fixed assets | 2,597 | 2,049 | 2,597 | 2,049 | 2,565 |
| Other current assets | 119 | 592 | 119 | 592 | 145 |
| Cash and cash equivalents | 58 | 17 | 58 | 17 | 107 |
| TOTAL ASSETS | 2,855 | 2,737 | 2,855 | 2,737 | 2,908 |
| Restricted equity | 3 | 3 | 3 | 3 | 3 |
| Non‐restricted equity | 1,311 | 1,246 | 1,311 | 1,246 | 1,289 |
| Non‐current liabilities | 1,284 | 1,436 | 1,284 | 1,436 | 1,349 |
| Current liabilities | 258 | 52 | 258 | 52 | 267 |
| TOTAL EQUITY AND LIABILITIES | 2,855 | 2,737 | 2,855 | 2,737 | 2,908 |
| 2015 | 2014 | 2014 | |
|---|---|---|---|
| (Summarised, amounts rounded off in MSEK) | 30 Jun | 30 Jun | 31 Dec |
| Opening balance | 1,292 | 1,269 | 1,269 |
| Total comprehensive income for period | 22 | ‐20 | 23 |
| Closing balance | 1,314 | 1,249 | 1,292 |
Operating profit before depreciation (EBITDA) as a percentage of total income.
Operating profit (EBIT) as a percentage of total income.
Rolling 12 months operating profit (EBIT) related to quarterly average capital employed for the period.
Rolling 12 months operating profit before depreciation (EBITDA) related to quarterly average capital employed for the period.
Rolling 12 months net profit related to quarterly average equity for the period.
Equity divided by the average number of shares.
Interest‐bearing liabilities less cash and blocked accounts.
Profit before tax plus financial expenses as a percentage of financial expenses.
Interest‐bearing net liabilities as a percentage of equity.
Equity as a percentage of total assets.
Equity plus interest‐bearing net liabilities.
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