2015-04-30 10:30:00 CEST
2015-04-30 10:30:04 CEST
REGULATED INFORMATION
Fingrid Oyj - Interim report (Q1 and Q3)
Fingrid group's Interim report 1 January – 31 March 2015
Helsinki, Finland, 2015-04-30 10:30 CEST (GLOBE NEWSWIRE) -- Fingrid Oyj
Interim report 30 April 2015 at 11.30 EET
Unless otherwise indicated, the figures in parentheses refer to the same period
of the previous year.
Financial development in January - March 2015
-- The Group's turnover in January - March was EUR 179.9 (191.3) million
-- The Group's operating profit was EUR 72.8(79.3) million
-- Consolidated profit for the period was EUR 55.4(62.3) million
-- The Group's net cash flow operations, after capital expenditure, was EUR
52.4(73.2) million
-- Interest-bearing net amounted to EUR 999.3(1,002.8) million
-- Capital expenditure totalled EUR 24.1(31.6) million
-- The equity ratio was 33.5 (32.0) per cent
-- Earnings per share were EUR 16,656 (18,744)
KEY FIGURES 1-3/2015 1-3/2014 change % 1-12/2014
--------------------------------------------------------------------------------
Turnover €M 179.9 191.3 -6.0 567.2
--------------------------------------------------------------------------------
Capital expenditure, gross €M 24.1 31.6 -23.8 129.5
--------------------------------------------------------------------------------
- of turnover % 13.4 16.5 22.8
--------------------------------------------------------------------------------
Research and development €M 0.4 0.4 2.2 1.7
expenses
--------------------------------------------------------------------------------
- of turnover % 0.2 0.2 0.3
--------------------------------------------------------------------------------
Average number of employees 313 287 9.1 305
--------------------------------------------------------------------------------
Number of employees at end of 312 289 8.0 313
period
--------------------------------------------------------------------------------
Salaries and bonuses, total €M 5.5 5.1 6.4 20.5
--------------------------------------------------------------------------------
Operating profit €M 72.8 79.3 -8.2 142.8
--------------------------------------------------------------------------------
- of turnover % 40.5 41.5 25.2
--------------------------------------------------------------------------------
Profit before taxes €M 69.2 77.8 -11.1 132.9
--------------------------------------------------------------------------------
- of turnover % 38.5 40.7 23.4
--------------------------------------------------------------------------------
Profit for the period €M 55.4 62.3 -11.1 106.5
--------------------------------------------------------------------------------
Comprehensive income for the €M 57.0 61.9 -7.9 106.1
period
--------------------------------------------------------------------------------
Equity ratio % 33.5 32.0 31.0
--------------------------------------------------------------------------------
Interest-bearing net borrowings €M 999.3 1,002.8 -0.3 1,046.1
--------------------------------------------------------------------------------
Gearing 1.4 1.4 1.6
--------------------------------------------------------------------------------
Earnings per share € 16,655.62 18,744.08 -11.1 32,027.89
--------------------------------------------------------------------------------
Dividend, Series A shares € 21,655.44
--------------------------------------------------------------------------------
Dividend, Series B shares € 16,038.49
--------------------------------------------------------------------------------
Equity per share € 217,721 211,907 2.7 200,568
--------------------------------------------------------------------------------
Dividend payout ratio, A shares % 67.6
--------------------------------------------------------------------------------
Dividend payout ratio, B shares % 50.1
--------------------------------------------------------------------------------
Number of shares
--------------------------------------------------------------------------------
- Series A shares qty 2,078 2,078 2,078
--------------------------------------------------------------------------------
- Series B shares qty 1,247 1,247 1,247
--------------------------------------------------------------------------------
Total qty 3,325 3,325 3,325
--------------------------------------------------------------------------------
Jukka Ruusunen, President & CEO of Fingrid: “Mild winter lowered electricity
consumption”
Electricity consumption in Finland was lower in the first quarter of the year,
due to the mild winter. As a consequence of the decline in consumption and the
reduction in grid pricing that was enacted at the start of the year, Fingrid's
grid service income decreased compared to the previous year. Because of the
mild winter, peak electricity consumption was lower than normal, and
electricity demand could be met with domestic production and imported
electricity. In severe cold spells, power balance in future could be strained.
The market situation resulted in high transmission capacity utilisation between
Finland and Sweden, but, compared to last year, regional price differences
caused by insufficient transmission capacity were smaller, and Fingrid received
less congestion income.
In January, the Energy Authority granted Fingrid a licence to operate high
voltage electricity transmission system (the Finnish Main Grid). At the end of
March, Fingrid defined its Main Grid for the first time. The definitions apply
to all transmission lines, electricity substations and other devices that fall
under the scope of the transmission service and Main Grid. The obligation to
define the Main Grid is based on the valid Electricity Market Act.
FINGRID GROUP'S INTERIM REPORT 1 JANUARY - 31 MARCH 2015
Accounting principles
Fingrid's interim report has been drawn up in accordance with standard IAS 34,
Interim Financial Reporting. In preparing this Interim Report, Fingrid has
applied the same accounting principles as those used for its 2014 financial
statements.
Financial result
The Group's turnover in January-March was EUR 179.9 (191.3) million. Grid
service income declined to EUR 115.4 (124.2) million in the first quarter. The
decline can be attributed to lower electricity consumption and the two-percent
reduction in grid pricing enacted at the start of the year. Other operating
income totalled 0.8 (1.2) million. Costs in the January-March period amounted
to EUR 103.9 (105.5) million.
Electricity consumption in Finland totalled 23.4 (23.9) terawatt hours between
January and March. Imbalance power sales amounted to EUR 40.2 (41.3) million.
Fingrid's congestion income from connections between Finland and Sweden
declined to EUR 11.0 (15.0) million as a result of the market situation, in
which Finland has imported a significant amount of electricity from Sweden, but
the regional price differences are smaller than they were in 2014. Cross-border
transmission income from the connection between Finland and Russia increased to
EUR 5.6 (2.5) million. The increase was due to the growth in Russian imports,
which is attributed to the weakening rouble. Both congestion income from
connections between Finland and Estonia and Inter-Transmission System Operator
Compensation ITC income remained at the same level as the corresponding period
of last year.
Imbalance power sales amounted to EUR 40.2 (41.3) million. Imbalance power
costs grew slightly from last year´s level, to EUR 27.8 (27.2) million. Loss
energy costs declined to EUR 15.9 (18.1) million, due to lower loss volumes
than in the comparison period. At the end of March, approximately 101 (98) per
cent of Fingrid's projected loss energy procurement for the remaining part of
2015 was hedged at an average price of EUR 40.1 (44.1) per megawatt hour.
With the market situation for reserves remaining favourable, the cost of
reserves to safeguard the system security of the Main Grid fell slightly to EUR
12.0 (12.8) million. Depreciations totalled EUR 22.9 (22.1) million.
Maintenance costs, which amounted to EUR 2.7 (2.8) million, remained almost at
last year's level. Personnel costs grew slightly as a consequence of the
increased number of personnel and were EUR 6.6 (6.3) million.
Turnover and other income (€M) 1-3/2015 1-3/2014 change % 1-12/2014
--------------------------------------------------------------------------
Grid service income 115 124 -7.1 326
--------------------------------------------------------------------------
Imbalance power sales 40 41 -2.8 151
--------------------------------------------------------------------------
ITC income 4 4 4.6 12
--------------------------------------------------------------------------
Cross-border transmission income 6 2 127.3 9
--------------------------------------------------------------------------
Finland-Estonia congestion income 0.4 0.4 -14.3 2
--------------------------------------------------------------------------
Peak load capacity income* 2 2 0.8 8
--------------------------------------------------------------------------
Finland-Sweden congestion income 11 15 -26.6 49
--------------------------------------------------------------------------
Other turnover 1 2 -39.2 9
--------------------------------------------------------------------------
Other operating income 1 1 -34.1 5
--------------------------------------------------------------------------
Turnover and other income total 181 192 -6.1 572
--------------------------------------------------------------------------
Costs (€M) 1-3/20 1-3/20 change 1-12/2
15 14 % 014
--------------------------------------------------------------------------------
Purchase of imbalance power 28 27 2.1 107
--------------------------------------------------------------------------------
Loss energy costs 16 18 -12.5 66
--------------------------------------------------------------------------------
Depreciation 23 22 3.7 92
--------------------------------------------------------------------------------
Cost of reserves 12 13 -6.0 62
--------------------------------------------------------------------------------
Personnel costs 7 6 5.4 25
--------------------------------------------------------------------------------
Peak load capacity costs* 2 2 -3.0 8
--------------------------------------------------------------------------------
Maintenance management costs 3 3 -3.7 19
--------------------------------------------------------------------------------
ITC costs 4 3 17.8 11
--------------------------------------------------------------------------------
Other costs 11 11 -6.1 46
--------------------------------------------------------------------------------
Costs total 104 106 -1.5 435
--------------------------------------------------------------------------------
Operating profit, excl. the change in the fair 77 87 -11.7 137
value of commodity derivatives
--------------------------------------------------------------------------------
Consolidated operating profit, IFRS 73 79 -8.2 143
--------------------------------------------------------------------------------
* Peak load capacity income and costs are related to the securing of sufficient
electricity supply during peak consumption hours in compliance with the Finnish
Peak Load Capacity Act.
The Group's operating profit in January - March 2015 was EUR 72.8 (79.3)
million. Profit before taxes was EUR 69.2 (77.8) million. The biggest negative
differences from the corresponding period last year are explained by the lower
grid service income (EUR -8.8 million) and the lower congestion income from the
connections between Finland and Sweden (EUR -4.0 million). Profit for the
period amounted to EUR 55.4 (62.3) million and the comprehensive income to 57.0
(61.9) million. The Group´s net cash flow from operations, with net capital
expenditure deducted, was 52.4 (73.2) million euros positive. The equity ratio
was 33.5 (32.0) per cent at the end of the review period.
The Group's profit for the financial period is characterised by seasonal
fluctuations, which is why the profit for the entire year cannot be directly
estimated on the basis of profit from this three-month period.
Investments and maintenance
The focus of the grid investment programme is to develop the Ostrobothnian
transmission grid and modernise the old transmission connection from eastern
Finland to western Finland known as the Iron Lady.
The Kokkola-Oulu connection that is part of the Ostrobothnia project proceeded
according to plan. Work has been under way at the Hirvisuo, Pyhäselkä and
Tuovila substations. The work has been progressing well, in spite of the mild
winter and some challenging disturbances.
Work on the Hikiä-Forssa transmission line related to modernising the Iron Lady
was on schedule at both the substation and the transmission line.
In accordance with procurement decisions Fingrid made in the first quarter of
the year, ABB Oy will construct a new 400/110 kilovolt transformer substation
in Isokangas, north of Oulu. The contract is valued at approximately EUR 8.5
million, and the substation is expected to be completed by the end of 2016. A
second, 220/110/20 kilovolt transformer substation in the Vajukoski area of
Sodankylä is being built by Empower PN Oy. That contract is valued at roughly
EUR 6 million, and the substation is expected to be completed in summer 2016.
Power system
The winter was milder than average. Peak electricity consumption of 13.494
MWh/h was reached at the end of January. During that period, electricity was
imported from Sweden using nearly full transmission capacity, but at the same
time, electricity was exported from Finland to Estonia. Finnish power plants
had available production capacity during the peak consumption period. Finland's
electricity supply was not in jeopardy, and there was no need to use peak load
capacity.
January through March, electricity consumption in Finland totalled 23.4 (23.9)
terawatt hours. Inter-TSO transmission during the period amounted to 1.3 (1.3)
terawatt hours, adding up to a total electricity transmission of 24.7 (25.2)
terawatt hours in Finland. Fingrid transmitted a total of 17.9 (18.2) terawatt
hours in its grid, representing 72.5 (72.2) per cent of the total electricity
transmission in Finland. During this period, Fingrid transmitted 16.6 (16.9)
terawatt hours of electricity to its customers which amounts to 70.9 (70.4) per
cent of Finland's total consumption.
Between January and March, 4.2 (5.1) TWh of electricity were imported from
Sweden to Finland, and 0.1 (0.0) TWh were exported from Finland to Sweden. The
transmission capacity on the DC connections between Finland and Sweden was
limited in March during a period of maintenance work in Sweden.
The volume of electricity imported from Estonia to Finland between January and
March was 0.01 (0.01) TWh, and 1.1 (1.3) TWh were exported from Finland to
Estonia. During a period of maintenance and testing on a reserve power plant in
Estonia, transmission capacity was limited for a few days.
Between January and March was 2.0 (0.8) TWh of electricity was imported from
Russia to Finland. The volume of imports from Russia has fluctuated due to the
market situation and according to the time of day. Transmission capacity from
Russia to Finland was fully available during the reporting period, with the
exception of nearly a week of maintenance work performed on the Russian grid in
March.
Power system operation 1-3/2015 1-3/2014 1-12/2014
--------------------------------------------------------------------------------
Electricity consumption in Finland, TWh 23.4 23.9 83.3
--------------------------------------------------------------------------------
TSO transmission in Finland, TWh 1.3 1.3 3.9
--------------------------------------------------------------------------------
Transmission within Finland, TWh 24.7 25.2 87.2
--------------------------------------------------------------------------------
Fingrid's transmission volume, TWh 17.9 18.2 67.2
--------------------------------------------------------------------------------
Fingrid's electricity transmission to customers, 16.6 16.9 63.3
TWh
--------------------------------------------------------------------------------
Fingrid's loss energy volume, TWh 0.3 0.3 1.3
--------------------------------------------------------------------------------
Electricity transmission Finland-Sweden
--------------------------------------------------------------------------------
exports to Sweden TWh 0.1 0.0 0.2
--------------------------------------------------------------------------------
Imports from Sweden, TWh 4.2 5.1 18.1
--------------------------------------------------------------------------------
Electricity transmission Finland-Estonia
--------------------------------------------------------------------------------
Exports to Estonia, TWh 1.1 1.3 3.6
--------------------------------------------------------------------------------
Imports from Estonia, TWh 0.01 0.01 0.1
--------------------------------------------------------------------------------
Electricity transmission Finland-Russia
--------------------------------------------------------------------------------
Imports from Russia, TWh 2.0 0.8 3.3
--------------------------------------------------------------------------------
Electricity market
The market situation resulted in considerable electricity imports from Sweden
to Finland, and the area price for Finland was higher than in other Nordic
countries. In January - March 2015, the average Nordic price (system price) of
electricity was EUR 28.13 (30.19) per megawatt hour, and the area price for
Finland was EUR 32.10 (35.24) per megawatt hour.
Congestion income between Finland and Sweden totalled EUR 22.0 (30.0) million.
The decline in congestion income is attributed to the general decline in the
price level of electricity and the improved availability of the transmission
connections between countries.
Electricity market 1-3/2015 1-3/2014 1-12/2014
--------------------------------------------------------------------------------
Nord Pool system price, average €/MWh 28.13 30.19 29.61
--------------------------------------------------------------------------------
Area price Finland, average €/MWh 32.10 35.24 36.02
--------------------------------------------------------------------------------
Congestion income between Finland and Sweden, €M* 22.0 30.0 97.7
--------------------------------------------------------------------------------
Congestion hours between Finland and Sweden, %* 44.7 62.1 47.8
--------------------------------------------------------------------------------
Congestion income between Finland and Estonia, 0.7 0.8 4.8
€M*
--------------------------------------------------------------------------------
Congestion hours between Finland and Estonia, %* 6.5 11.3 8.2
--------------------------------------------------------------------------------
* The congestion income between Finland and Sweden as well as between Finland
and Estonia is divided equally between the relevant TSOs. The income and costs
of the transmission connections are presented in the tables in the Financial
result section.
During the first quarter of the year, Fingrid used EUR 1.0 ((2.9) million for
countertrade. The biggest costs were caused by disturbances in the DC
connection between Finland and Sweden in February and by countertrade related
to grid construction to maintain system security in Ostrobothnia.
Countertrade 1-3/2015 1-3/2014 1-12/2014
--------------------------------------------------------------------------------
Countertrade between Finland and Sweden, €M 0.2 2.8 7.7
--------------------------------------------------------------------------------
Countertrade between Finland and Estonia, €M 0.0 0.0 0.8
--------------------------------------------------------------------------------
Countertrade between Finland's internal 0.8 0.0 1.7
connections, €M
--------------------------------------------------------------------------------
Total countertrade, €M 1.0 2.9 10.1
--------------------------------------------------------------------------------
Financing
The Group's financial position remained satisfactory. The Group's liquidity
remained good. The Group´s net financial costs between January and March were
EUR 3.9 (2.0) million, including the positive change of EUR 1.3 million
positive (2.8 million positive) in the fair value of derivatives.
Financial and cash assets recognised at fair value throught profit or loss on
31 March 2015 were 183.4 (230.4) million. The company additionally has an
undrawn revolving credit facility of EUR 250 million.
Interest-bearing borrowings totalled EUR 1,182.8 (1,233.3) million, of which
non-current loans accounted for EUR 955.2 (973.1) million and current loans for
EUR 227.6 (260.2) million.
The change in the fair value of derivatives in January-March 2015 includes EUR
1.4 million from a dismantled hedge fund resulting from the discontinuation of
hedge accounting, as an item reducing the Group's result.
The counterparty risk arising from derivative contracts relating to financing
was EUR 37 (39) million. Fingrid's foreign exchange and commodity price risks
are generally fully hedged.
Personnel
The total number of personnel employed by the Group averaged 313 (287), of
which 282 (269) were in a permanent employment relationship.
Other matters
In January 2015, the Finnish Energy Authority issued a decision in which it
appointed Fingrid Oyj as the transmission system operator responsible for the
Main Grid, as referred to in the Electricity Market Act, and granted the
company a licence to operate the Main Grid. The decision nullifies the previous
electricity network licence granted in 1997.
At the end of March, the Group defined its Main Grid for the first time. The
definitions apply to all transmission lines, electricity substations and other
devices that fall under the scope of the transmission service and grid. The
obligation to define the network is based on the valid Electricity Market Act.
Auditing
The consolidated figures in this Interim Report are unaudited.
Events after the review period and outlook for the rest of the year
Fingrid's report on the creation of a data hub as a future solution for
exchanging information in the electricity market was examined by the Ministry
of Employment and the Economy, and Fingrid was requested to initiate the data
hub project.
Fingrid Oyj's Annual General Meeting was held on 14 April 2015. The Annual
General Meeting approved the financial statements for 2014, confirmed the
income statement and balance sheet, and discharged the members of the Board of
Directors and the CEO from liability.
The Annual General Meeting elected Fingrid Oyj's Board of Directors for 2015.
Continuing as board members are Helena Walldén (Chairman), Juha Majanen (Vice
Chairman), Juhani Järvi and Esko Torsti. Sanna Syri was elected as a new
member. A more detailed presentation of the board members is available on the
company's website. The Annual General Meeting decided on a dividend payment of
EUR 21,655.44 for each Series A share and EUR 16,038.49 for each Series B
share, representing a total dividend payout of EUR 65,000,001.35.
Fingrid Group's profit for the 2015 financial period, excluding changes in the
fair value of derivatives and before taxes, is expected to decline from the
previous year. Uncertainty related to reserve costs, congestion income, loss
energy costs and cross-border transmission with Russia make it difficult to
forecast the result for the full financial year. The company's debt service
capacity is expected to remain stable.
Notes: Tables for Fingrid's Interim Report 1 Jan-31 Mar 2015
Further information:
Jukka Ruusunen, President & CEO, tel. +358 30 395 5140 or +358 40 593 8428
Jan Montell, Chief Financial Officer, tel. +358 30 395 5213 or +358 40 592 4419
Notes: Tables for Fingrid's Interim Report 1 Jan-31 Mar 2015
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
€M 1-3/201 1-3/201 Change 1-12/201
5 4 4
--------------------------------------------------------------------------------
Turnover 179.9 191.3 -11.4 567.2
--------------------------------------------------------------------------------
Other operating income 0.8 1.2 -0.4 4.6
--------------------------------------------------------------------------------
Depreciation -22.9 -22.1 -0.8 -91.5
--------------------------------------------------------------------------------
Operating expenses -84.9 -91.1 6.1 -337.4
--------------------------------------------------------------------------------
Operating profit 72.8 79.3 -6.5 142.8
--------------------------------------------------------------------------------
Finance income and costs -3.9 -2.0 -1.9 -10.7
--------------------------------------------------------------------------------
Share of profit of assoc. companies 0.2 0.4 -0.2 0.9
--------------------------------------------------------------------------------
Profit before taxes 69.2 77.8 -8.6 132.9
--------------------------------------------------------------------------------
Income tax -13.8 -15.5 1.7 -26.4
--------------------------------------------------------------------------------
Profit for the period 55.4 62.3 -6.9 106.5
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Other comprehensive income
--------------------------------------------------------------------------------
Cash flow hedges 1.4 1.4
--------------------------------------------------------------------------------
Translation reserve 0.2 -0.4 0.6 -0.4
--------------------------------------------------------------------------------
Items related to non-current assets
--------------------------------------------------------------------------------
held for sale 0.0 0.0 0.0 0.0
--------------------------------------------------------------------------------
Total comprehensive income for the financial 57.0 61.9 -4.9 106.1
period
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit attributable to:
--------------------------------------------------------------------------------
Shareholders of the company 55.4 62.3 -6.9 106.5
--------------------------------------------------------------------------------
Comprehensive income attributable to:
--------------------------------------------------------------------------------
Shareholders of the company 57.0 61.9 -4.9 106.1
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Earnings per share on profit attributable to
shareholders of the parent company (EUR)*: 16,656 18,744 -2,088 32,028
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
* no dilutive effect
CONDENSED CONSOLIDATED BALANCE SHEET,
--------------------------------------------------------------------------------
€M 31.3.2015 31.3.2014 Change 31.12.2014
--------------------------------------------------------------------------------
ASSETS
--------------------------------------------------------------------------------
Non-current assets
--------------------------------------------------------------------------------
Goodwill 87.9 87.9 0.0 87.9
--------------------------------------------------------------------------------
Intangible assets 95.2 93.0 2.2 95.0
--------------------------------------------------------------------------------
Property, plant and equipment 1,627.0 1,613.0 14.0 1,640.5
--------------------------------------------------------------------------------
Investments 11.0 10.7 0.3 10.8
--------------------------------------------------------------------------------
Derivatives 42.9 44.8 -1.9 42.1
--------------------------------------------------------------------------------
Receivables 13.6 23.1 -9.6 13.3
--------------------------------------------------------------------------------
Total non-current assets 1,877.6 1,872.5 5.1 1,889.5
--------------------------------------------------------------------------------
Current assets
--------------------------------------------------------------------------------
Inventories 12.3 12.6 -0.3 12.8
--------------------------------------------------------------------------------
Derivatives 10.3 1.9 8.5 11.2
--------------------------------------------------------------------------------
Receivables 76.7 82.4 -5.6 57.7
--------------------------------------------------------------------------------
Financial assets recognised in the
income statement at fair value
--------------------------------------------------------------------------------
115.9 196.1 -80.2 116.7
--------------------------------------------------------------------------------
Cash and cash equivalents and 67.6 34.4 33.2 62.6
financial assets
--------------------------------------------------------------------------------
Total current assets 282.8 327.3 -44.5 261.0
--------------------------------------------------------------------------------
Non-current assets held for sale 0.2 0.2
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total assets 2,160.6 2,199.8 -39.2 2,150.5
--------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY AND LIABILITIES
--------------------------------------------------------------------------------
Equity attributable to shareholders of
the parent company
--------------------------------------------------------------------------------
Shareholders' equity 723.9 704.6 19.3 666.9
--------------------------------------------------------------------------------
Non-current liabilities
--------------------------------------------------------------------------------
Interest-bearing 955.2 973.1 -17.9 962.3
--------------------------------------------------------------------------------
Derivatives 43.0 46.2 -3.2 45.0
--------------------------------------------------------------------------------
Non-interest-bearing 125.5 134.3 -8.8 124.7
--------------------------------------------------------------------------------
Total non-current liabilities 1,123.7 1,153.6 -30.0 1,132.0
--------------------------------------------------------------------------------
Current liabilities
--------------------------------------------------------------------------------
Interest-bearing 227.6 260.2 -32.6 263.0
--------------------------------------------------------------------------------
Derivatives 14.1 15.7 -1.6 17.0
--------------------------------------------------------------------------------
Non-interest-bearing 71.3 65.7 5.6 71.6
--------------------------------------------------------------------------------
Total current liabilities 313.0 341.6 -28.6 351.6
--------------------------------------------------------------------------------
Total shareholders' equity and 2,160.6 2,199.8 -39.2 2,150.5
liabilities
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CHANGES IN TOTAL EQUITY, €M
--------------------------------------------------------------------------------
-
--------------------------------------------------------------------------------
Equity attributable to Share Share Reval- Transla Retain Sharehol
shareholders premiu tion ed ders'
m
of the parent company capita accoun uation reserve earnin equity
l t gs
reserv total
es
--------------------------------------------------------------------------------
1 Jan 2014 55.9 55.9 -11.6 0.0 542.4 642.7
--------------------------------------------------------------------------------
Comprehensive income for the
financial period
--------------------------------------------------------------------------------
Profit or loss 62.3 62.3
--------------------------------------------------------------------------------
Other comprehensive income
--------------------------------------------------------------------------------
Translation reserve -0.4 -0.4
--------------------------------------------------------------------------------
Items related to non-current 0.0 0.0
assets held for sale
--------------------------------------------------------------------------------
Total other comprehensive 0.0 -0.4 -0.4
income adjusted by tax
effects
--------------------------------------------------------------------------------
Total comprehensive income 0.0 -0.4 62.3 61.9
--------------------------------------------------------------------------------
31.3.2014 55.9 55.9 -11.6 -0.4 604.7 704.6
--------------------------------------------------------------------------------
Comprehensive income for the
financial period
--------------------------------------------------------------------------------
Profit or loss 44.2 44.2
--------------------------------------------------------------------------------
Other comprehensive income
--------------------------------------------------------------------------------
Translation reserve 0.0 0.0
--------------------------------------------------------------------------------
Items related to non-current 0.0 0.0
assets held for sale
--------------------------------------------------------------------------------
Total comprehensive income 0.0 0.0 648.9 748.8
--------------------------------------------------------------------------------
Transactions with
shareholders
--------------------------------------------------------------------------------
Dividends relating to 2013 -81.9 -81.9
--------------------------------------------------------------------------------
1 Jan 2015 55.9 55.9 -11.5 -0.4 567.0 666.9
--------------------------------------------------------------------------------
Comprehensive income for the
financial period
--------------------------------------------------------------------------------
Profit or loss 55.4 55.4
--------------------------------------------------------------------------------
Other comprehensive income
--------------------------------------------------------------------------------
Cash flow hedges 1.4 1.4
--------------------------------------------------------------------------------
Translation reserve 0.2 0.2
--------------------------------------------------------------------------------
Items related to non-current 0.0 0.0
assets held for sale
--------------------------------------------------------------------------------
Total other comprehensive 1.4 0.2 1.7
income adjusted by tax
effects
--------------------------------------------------------------------------------
Comprehensive income 1.4 0.2 55.4 57.0
--------------------------------------------------------------------------------
Transactions with
shareholders
--------------------------------------------------------------------------------
31.3.2015 55.9 55.9 -10.1 -0.2 622.4 723.9
--------------------------------------------------------------------------------
CONSOLIDATED CASH FLOW STATEMENT, € M 1-3/201 1-3/201 Change 1-12/201
5 4 4
--------------------------------------------------------------------------------
Cash flow from operating activities
--------------------------------------------------------------------------------
Profit for the financial period 55.4 62.3 -6.9 106.5
--------------------------------------------------------------------------------
Adjustments 44.0 46.5 -2.5 120.5
--------------------------------------------------------------------------------
Changes in working capital -25.0 -12.7 -12.4 19.1
--------------------------------------------------------------------------------
Interest paid -1.2 -1.3 0.1 -21.7
--------------------------------------------------------------------------------
Interest received 0.4 0.5 -0.1 1.2
--------------------------------------------------------------------------------
Taxes paid -4.3 -2.8 -1.5 -19.7
--------------------------------------------------------------------------------
Net cash flow from operating activities 69.4 92.6 -23.3 206.0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash flow from investing activities
--------------------------------------------------------------------------------
Purchase of property, plant and equipment -30.6 -38.2 7.6 -124.5
--------------------------------------------------------------------------------
Purchase of intangible assets -0.9 -1.0 0.1 -5.4
--------------------------------------------------------------------------------
Purchase of other assets 0.1
--------------------------------------------------------------------------------
Proceeds from sale of property, plant and 0.1 0.2 -0.2 1.4
equipment
--------------------------------------------------------------------------------
Loans granted -1.6
--------------------------------------------------------------------------------
Dividends received 0.3
--------------------------------------------------------------------------------
Contributions received 15.0 19.9 -4.9 19.9
--------------------------------------------------------------------------------
Interest paid -0.5 -0.4 -0.1 -1.3
--------------------------------------------------------------------------------
Net cash flow from investing activities -17.0 -19.4 2.5 -111.1
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash flow from financing activities
--------------------------------------------------------------------------------
Proceeds from non-current financing 110.0
(liabilities)
--------------------------------------------------------------------------------
Payments of non-current financing -2.0 -2.1 0.1 -103.0
(liabilities)
--------------------------------------------------------------------------------
Change in current financing (liabilities) -46.2 -57.9 11.7 -58.0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Dividends paid -81.9
--------------------------------------------------------------------------------
Net cash flow from financing activities -48.2 -60.0 11.8 -132.9
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Change in cash and cash equivalents and 4.2 13.1 -9.0 -38.0
financial assets
--------------------------------------------------------------------------------
Cash and cash equivalents 1 Jan. 179.3 217.3 -38.1 217.3
--------------------------------------------------------------------------------
Cash and cash equivalents 31 Mar. 183.4 230.4 -47.0 179.3
--------------------------------------------------------------------------------
QUARTERLY FIGURES
--------------------------------------------------------------------------
Q1/2015 Q4/2014 Q3/2014 Q2/2014 Q1/2014 Q4/2013
--------------------------------------------------------------------------
Turnover €M 179.9 148.2 113.6 114.1 191.3 155.1
--------------------------------------------------------------------------
Operating profit €M 72.8 26.5 17.3 19.7 79.3 36.5
--------------------------------------------------------------------------
Operating profit % 40.5 17.9 15.2 17.2 41.5 23.5
--------------------------------------------------------------------------
INVESTMENTS, €M 1-3/2015 1-3/2014 Change 1-12/2014
------------------------------------------------------------------
Grid investments 22.5 29.1 -6.6 117.5
------------------------------------------------------------------
Substations 10.7 14.4 -3.8 63.0
------------------------------------------------------------------
Transmission lines 11.8 14.7 -2.8 54.6
------------------------------------------------------------------
------------------------------------------------------------------
Gas turbine investments 0.0 0.1 -0.1 0.8
------------------------------------------------------------------
Existing gas turbine plants 0.0 0.0 -0.2
------------------------------------------------------------------
New gas turbine plants 0.0 0.1 -0.1 1.0
------------------------------------------------------------------
------------------------------------------------------------------
Other investments 1.6 2.4 -0.8 11.2
------------------------------------------------------------------
ICT 1.5 2.3 -0.8 11.1
------------------------------------------------------------------
Other 0.0 0.1 0.0 0.0
------------------------------------------------------------------
------------------------------------------------------------------
Total investments 24.1 31.6 -7.5 129.5
------------------------------------------------------------------
RESEARCH AND DEVELOPMENT EXPENSES, €M 1-3/2015 1-3/2014 1-12/2014
--------------------------------------------------------------------
--------------------------------------------------------------------
Research and development expenses 0.4 0.4 1.7
--------------------------------------------------------------------
DERIVATIVE CONTRACTS, €M
--------------------------------------------------------------------------------
-
31 Mar 2015 31 Mar 2014
--------------------------------------------------------------------------------
Interes Fair Fair Net Nomina Fair Fair Net Nomina
t rate value value fair l value value fair l
and pos. neg. value value pos. neg. value value
curren
cy
deriva
tives
--------------------------------------------------------------------------------
Currenc 32 -13 19 321 41 -8 33 366
y swaps
--------------------------------------------------------------------------------
Forward 0 0 1 -1 -1 117
contra
cts
--------------------------------------------------------------------------------
Interes 31 -12 18 435 17 -10 7 411
t rate
swaps
--------------------------------------------------------------------------------
Interes 150 320
t rate
option
s
purcha
sed
--------------------------------------------------------------------------------
Total 63 -26 37 907 58 -19 39 1,214
================================================================================
Electri Fair Fair Net TWh Fair Fair Net TWh
city value value fair value value fair
deriva pos. neg. value pos. neg. value
tives
--------------------------------------------------------------------------------
Electri -34 -34 4.18 Electri -46 -46 3.98
city city
forwar forwar
d d
contra contra
cs, cs,
NASDAQ NASDAQ
OMX OMX
Commod Commod
ities ities
--------------------------------------------------------------------------------
Total -34 -34 4.18 -46 -46 3.98
================================================================================
At the start of 2014, the Group terminated hedge accounting for derivatives. As
a result, the entire change in the fair value of the derivatives in question
was recorded and will, in future as well, be recorded in the income statement.
The hedge fund in the balance sheet will be dismantled in the income statement
during 2015 and 2016 in fixed instalments such that it decreases the result by
EUR 11.6 million.
DERIVATIVE CONTRACTS, €M
--------------------------------------------------------------------------------
-
31 Dec 2014
--------------------------------------------------------------------------------
Interest rate and currency Fair value Fair value Net fair Nominal
derivatives pos. neg. value value
--------------------------------------------------------------------------------
Currency swaps 29 -20 9 321
--------------------------------------------------------------------------------
Forward contracts 3 3 55
--------------------------------------------------------------------------------
Interest rate swaps 27 -12 16 365
--------------------------------------------------------------------------------
Interest rate options purchased 310
--------------------------------------------------------------------------------
Total 59 -32 28 1,052
================================================================================
Electricity derivatives Fair value Fair value Net fair TWh
pos. neg. value
---------------------------------------------
Electricity forward contracs, -32 -32 4.19
NASDAQ OMX Commodities
--------------------------------------------------------------------------------
Total -32 -32 4.19
================================================================================
Fair value hierarchy of financial instruments, €M 31 Mar 2015
--------------------------------------------------------------------------------
Level 1 Level 2 Level 3
--------------------------------------------------------------------------------
Financial assets held at fair value
--------------------------------------------------------------------------------
Interest rate and currency derivatives 63
--------------------------------------------------------------------------------
Financial assets recognised in the income statement 29 86
at fair value
--------------------------------------------------------------------------------
Total financial assets held at fair value 29 149
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Financial liabilities held at fair value
--------------------------------------------------------------------------------
Interest rate and currency derivatives, liabilities 34 26
--------------------------------------------------------------------------------
Electricity forward contracts, NASDAX OMX Commodities
--------------------------------------------------------------------------------
Total financial liabilities held at fair value 34 26
--------------------------------------------------------------------------------
In the presentation of fair value, assets and liabilities recognised at fair
value are categorised into a three-level hierarchy. The appropriate hierarchy
is based on the input data of the instrument. The level is determined on the
basis of the lowest level of input for the instrument in its entirety that is
significant to the fair value measurement.
Level 1: inputs are publicly quoted in active markets.
Level 2: inputs are not publicly quoted and are based on observable market
parameters either directly or indirectly.
Level 3: inputs are not publicly quoted and are unobservable market parameters.
Contingent liabilities, €M 31.3.2015 31.3.2014 Change 31.12.2014
--------------------------------------------------------------------------------
Pledged cash assets 1 8 -7 1
--------------------------------------------------------------------------------
Rental liabilities 27 27 0 27
--------------------------------------------------------------------------------
Right-of-use agreements for reserve 97 103 -6 100
power plants
--------------------------------------------------------------------------------
Credit facility commitment fees 1 2 -1 1
--------------------------------------------------------------------------------
Total 126 140 -14 129
--------------------------------------------------------------------------------
Investment commitments 134 121 13 144
--------------------------------------------------------------------------------
Other financial commitments 2 2 0 2
--------------------------------------------------------------------------------
Changes in property, plant and 31.3.2015 31.3.2014 Change 31.12.2014
equipment, €M
--------------------------------------------------------------------------------
Carrying amount at beginning of period 1,640 1,623 17 1,623
--------------------------------------------------------------------------------
Increases 9 12 -2 107
--------------------------------------------------------------------------------
Decreases 0 0 0 0
--------------------------------------------------------------------------------
Depreciation and amortisation expense -23 -22 -1 -90
--------------------------------------------------------------------------------
Carrying amount at end of period 1,627 1,613 14 1,640
--------------------------------------------------------------------------------
Transactions with associated 31.3.2015 31.3.2014 Change 31.12.2014
companies, €M
--------------------------------------------------------------------------------
Sales 3 3 0 7
--------------------------------------------------------------------------------
Purchases 10 11 -1 42
--------------------------------------------------------------------------------
Trade receivables 3 1 1 2
--------------------------------------------------------------------------------
Trade payables 0 0 1
--------------------------------------------------------------------------------
Loan receivables 2 2 2
--------------------------------------------------------------------------------
Transactions with shareholders, €M 31.3.2015 31.3.2014 Change 31.12.2014
----------------------------------------------------------------------------
Owners
----------------------------------------------------------------------------
Purchases 6 6 0 6
----------------------------------------------------------------------------
Trade payables 0 0 0 0
----------------------------------------------------------------------------
Other related parties
----------------------------------------------------------------------------
Sales 14 27 -13 55
----------------------------------------------------------------------------
Purchases 19 6 13 84
----------------------------------------------------------------------------
Trade receivables 1 9 -8 2
----------------------------------------------------------------------------
Trade payables 3 2 1 4
----------------------------------------------------------------------------
Accounting principles
This interim report has been drawn up in accordance with standard IAS 34,
Interim Financial Reporting. In preparing this Interim Report, Fingrid has
applied the same accounting principles as those used for its 2014 financial
statements.
Segment reporting
The entire business of the Fingrid Group is deemed to comprise transmission
grid operation in Finland with system responsibility, constituting a single
segment. There are no essential differences in the risks and profitability of
individual products and services. For that reason, segment reporting in
accordance with the IFRS 8 standard is not presented.
Corporate restructuring
There have been no changes in the Group structure during the review period.
Seasonal fluctuations
The Group's operations are characterised by substantial seasonal fluctuations.
General clause
Certain statements in this report are forward-looking and are based on the
current views of the company's management. Due to their nature, they contain
some risks and uncertainties and are subject to general changes in the economy
and the business sector.
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