financial results q1 2019 - statkraftq1 2019 vs. q1 2018 coal and gas prices down co 2 price...
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FINANCIAL RESULTSQ1 2019CEO Christian Rynning-Tønnesen
Acting CFO Thomas Geiran
9 May 2019
Health, safety and environment
Health and safety- Three serious injuries reported in the quarter
Environment - No serious environmental incidents in the quarter
21TRI rate (12 months rolling): Total recordable injuries per million hours worked
TRI-rate1
0
1
2
3
4
5
6
2017 2018 2019
5.5
Highlights in Q1
Underlying EBIT of NOK 6430 million
Net profit amounting to NOK 4752 million
Europe’s leading provider of market access services for third parties
Acquisition of share in German EV charging company
3
Europe’s leading provider of market access services for third parties
Total portfolio: Approx. 22 000 MW worldwide- More than 18 000 MW in Europe, of
which 12 000 MW in Germany
Virtual power plants are used to market these renewable assets with maximum efficiency
Virtual power plants are currently being rolled out in UK and France
4
Entering the German EV charging market Acquired 61 percent of Munich
based eeMobility
The company provides charging solutions for company fleets with full service offer
In line with Statkraft’s ambition to take a position within EV charging in Northern Europe
5
Financial performance
6
10.1%9.7%
Q1-2017 Q2-2017
10.6%
14.7%
10.5%
Q3-2017 Q4-2017
12.5%
Q1-2018
11.9%
Q2-2018
13.2%
Q3-2018 Q4-2018
14.9%
Q1-2019
Return on average capital employed (ROACE): Underlying EBIT last 12 months / Average capital employed
12 months rolling ROACE of 14.9%- Strong development the last few years
- Higher Nordic power prices and solid energy management - Market activities - Execution of Performance Improvement Programme
- Average capital employed slightly up compared with year-end 2018
Outlook
Good underlying performance has led to robust earnings over time- Europe’s largest reservoir capacity and flexible power plants- Long term revenue optimisation and replacing long-term bilateral contracts
Well positioned for growth in renewable energy- Solid financial position- Building scale in core markets
Strong organisational culture- Strong competence base and highly motivated employees- Commitment to act in an ethical and socially responsible manner is a foundation for all activities
7
Songa dam, Norway
NOK million Q1 2019 Q1 2018 The year 2018
Net operating income underlying 9 347 8 884 26 925
Operating profit/loss (EBIT) underlying 6 430 5 962 14 953
Net profit 4 752 10 282 13 390
Nordic prices measured in EUR up 21% Q-on-Q
Overall generation down 24% Q-on-Q
Key figures
8
Price drivers and the German power market
9
Q1 2019 vs. Q1 2018
Coal and gas prices down
CO2 price significantly higher
German power prices up 15% Q-on-Q
0
20
40
60
80
100
120
Q1-2017
Q3Q3 Q1-2018
Q4Q2 Q2 Q4 Q1-2019
Coal, ARA (USD/t)
0
5
10
15
20
25
Q3Q3 Q4Q2Q1-2017
Q1-2018
Q2 Q4 Q1-2019
CO2, EUA (EUR/t)
0
5
10
15
20
25
30
Q4Q2Q3Q1-2017
Q4Q2 Q1-2018
Q3 Q1-2019
Gas, NBP/TTF (EUR/MWh)
0
10
20
30
40
50
60
Q4Q1-2017
Q2 Q3 Q3Q4 Q1-2018
Q2 Q1-2019
EEX, base (EUR/MWh)
Nordic reservoir level
Reservoir levels below normal throughout Q1
Nordic reservoir level (total market) at 94% of median at the end of Q1
10
0
20
40
60
80
100
Q1 Q4Q2 Q3
Median
20192018
%
Nordic system price, monthly average
Nordic power prices 46.8 EUR/MWh, up 21% Q1 2019 vs. Q1 2018
EUR/MWh
11
05
10152025303540455055
Q1-2017
Q2 Q2Q3 Q1-2018
Q4 Q3 Q4 Q1-2019
Energy management
12
Q1 generation down 24% Q-on-Q
Technology TWh Change in TWh
Hydropower 14.6 -5.4
Wind power 0.9 0.4
Gas power 0.5 0.1
Bio and solar power 0.1 0.0
Total 16.1 -4.90
1
2
3
4
5
6
7
8
JunJan AugFeb Mar Apr May OctJul Sep Nov Dec
2018 2019
Tisleifjord hydropower plant
Q1 net operating income underlying
13
NOK million
Sales revenues less energy purchase
288474
243 267
-548
60
628
1 770
219
-633Transmission
costsGeneration Customers Grid and other Gains/losses from
market activitiesOther operating
incomeTotal net
operating income
8 160
7 303
8 884
9 347
+5%
Q1 2019Q1 2018
NOK 6.4 billion in underlying EBIT
Underlying EBIT up NOK 469 million Q-on-Q
Primarily driven by higher contribution from market activities, especially from trading and origination. Higher Nordic power prices and el-cert prices had a further positive effect, while lower Nordic hydropower generation had a negative impact.
14
NOK million
5 962
6 430
Q12018
Q12019
+8%
Financial items
15
NOK million
Breakdown Net financial items Q1 2019 Breakdown Net financial items Q1 2019
126
550
42
Currency gains and losses Other financial itemsInterest income Interest expenses
688
222
Net financial items Q1 2019
Underlying EBIT Q1 2018 Q1 2019Underlying EBIT Q1 2018 Q1 2019
Q1 net profit breakdown
16
NOK million
Underlying EBIT Q1 2019 Net Profit Q1 2019Underlying EBIT Q1 2019 Net Profit Q1 2019
463180
508
550
2 549
7
Share of profit/loss in
equity accounted
investments
Net financial items
TaxImpairmentsUnrealised value changes
from energy derivatives
Q1 2019Net profit
Operating expenses
6
Net operating income
5 962
Q1 2019Operating profit/loss
(EBIT) underlying
4 752
Gains/losses from
divestments of business
activities
Q1 2018 Operating profit/loss
(EBIT) underlying
0
6 430
+8%
Q1 segment EBIT underlying
17
NOK million
170 191 80 131
614
4 096
1 205
198 291137
613
Marketoperations
Internationalpower
European wind and solar
Districtheating
European flexiblegeneration
Industrialownership
4 872 Q1 2018Q1 2019
Q1 2019 capital expenditure1
Distribution of CAPEX in the quarter:- 45% new capacity investments- 49% maintenance/other investments- 6% shareholdings
New hydropower capacity under construction in Albania and India
Wind power at Fosen in Norway
Maintenance primarily related to Nordic hydropower
18
European flexible
generation28%
1 Excluding loans to equity accounted investmentsOther includes District heating, Market operations and Other activities
28%
20%
16%
13%
22%
European flexible generation
Industrial ownershipInternational power
European wind and solar
Other
NOK0.9
billion
Cash flow in Q1
19
NOK million
3 891
925
1 607
Cash reserves 31.12. Operating activities Investing activities Financing activities
89
Currency exchange rate effects
Cash reserves 31.03.
23 175
24 445
Long-term debt repayment profile
NOK 11.5 billion in net interest-bearing debt (NOK 12.9 billion end of 2018)
Net interest-bearing debt-equity 10.2%
Weighted average maturity: 4.6 years
20
0
2 000
4 000
6 000
8 000
10 000
20252019 20232020 20262021 2022 2024 2027 2028 >2029
NOK million
Strong credit ratings
21
A- / Stable BBB+ / Stable
Maintaining current ratings with S&P and Fitch
Strong support from owner
Rating impact assessment completed prior to new investment decisions
Solid financial foundation for new investments
Solid underlying performance in the quarter
Robust financial position
Solid foundation for growth phase
Investment plan with large degree of flexibility
Summary
22
Stormyr basin, Norway
www.statkraft.com
THANK YOUInvestor contacts:Debt Capital Markets Financial informationFunding manager Stephan Skaane Senior Financial Advisor Arild Ratikainen Phone: +47 905 13 652 Phone: +47 971 74 132E-mail: [email protected] E-mail: [email protected]
Senior Vice President Geir Bangsund Vice President Bjørn Inge NordangPhone: +47 480 40 986 Phone: +47 913 59 865 E-mail: [email protected] E-mail: [email protected]