2013-07-24 10:00:00 CEST
2013-07-24 10:00:04 CEST
REGULATED INFORMATION
Fingrid Oyj - Interim report (Q1 and Q3)
Fingrid Group's Interim Report 1 January - 30 June 2013
Helsinki, Finland, 2013-07-24 10:00 CEST (GLOBE NEWSWIRE) -- Fingrid Oyj
Interim Report 24.7.2013 at 11.00 EET
January - June 2013: Improved profit for the financial period
-- The Group's revenue between January and June 2013 was 280 million euros
(262 million eurosduring the corresponding period in 2012).
-- The Group's net profit was 69 million euros (49 million).
-- The Group's net profit for the financial period was 40 million euros (32
million).
-- The cash flow from the operations of the Group deducted by capital
expenditure was 39 million euros (43 million).
-- The interest-bearing borrowings totalled 977 million euros (980 million).
-- Investments totalled 64 million euros (57 million).
-- The equity ratio was 28.9% (26.2%).
-- Earnings per share totalled 11,990 euros (9,687 euros).
April-June 2013: Loss for the second quarter due to seasonality
-- The Group's revenue between April and June 2013 was 110 million euros (93
million euros during the corresponding period in 2012).
-- Other operating profit for the second quarter of the year was -10 million
euros (-5 million).
-- The Group's net profit for the financial period was -15 million euros (-6
million).
KEY FIGURES Jan-Jun Jan-Jun change Apr-Ju Apr-Ju change Jan-Dec
2013 2012 % n n % 2012
2013 2013
--------------------------------------------------------------------------------
Revenue M€ 280.1 262.3 6.8 109.5 92.7 18.1 522.1
--------------------------------------------------------------------------------
Capital M€ 63.6 56.7 12.1 29.1 37.5 -22.4 139.0
expenditure,
gross
--------------------------------------------------------------------------------
- of revenue % 22.7 21.6 26.6 40.5 26.6
--------------------------------------------------------------------------------
Research and M€ 0.9 0.6 38.7 0.4 0.3 43.4 1.5
development
expenses
--------------------------------------------------------------------------------
- of revenue % 0.3 0.2 0.4 0.3 0.3
--------------------------------------------------------------------------------
Personnel, 275 267 2.9 282 269 4.8 269
average
--------------------------------------------------------------------------------
Personnel, at 296 283 4.6 288 275 4.5 275
the end of
period
--------------------------------------------------------------------------------
Salaries and M€ 9.4 9.1 3.0 4.8 4.7 2.5 18.2
bonuses,
total
--------------------------------------------------------------------------------
Operating M€ 69.0 49.1 40.5 -10.2 -5.1 -99.0 94.6
profit
--------------------------------------------------------------------------------
- of revenue % 24.6 18.7 -9.3 -5.5 18.1
--------------------------------------------------------------------------------
Profit before M€ 52.7 42.6 23.8 -20.1 -7.5 -169.8 88.3
taxes
--------------------------------------------------------------------------------
- of revenue % 18.8 16.2 -18.4 -8.0 16.9
--------------------------------------------------------------------------------
Profit for the M€ 39.9 32.2 23.8 -15.2 -5.6 -170.7 67.0
financial
period
--------------------------------------------------------------------------------
Comprehensive M€ 35.6 35.1 1.4 -14.6 -4.9 -200.4 73.2
income for
the financial
period
--------------------------------------------------------------------------------
Return on % 5.6
investment
(ROI)
--------------------------------------------------------------------------------
Return on % 12.4
equity (ROE)
--------------------------------------------------------------------------------
Equity ratio % 28.9 26.2 27.3
--------------------------------------------------------------------------------
Interest-beari M€ 977.3 980.2 -0.3 1030.3
ng net
borrowings
--------------------------------------------------------------------------------
Net gearing % 165.0 184.4 180.8
ratio
--------------------------------------------------------------------------------
Earnings per € 11 990.3 9 687.4 23.8 20 159.2
share
--------------------------------------------------------------------------------
Dividend/ € 5 115.89
series A
shares
--------------------------------------------------------------------------------
Dividend/ € 2 018.26
series B
shares
--------------------------------------------------------------------------------
Equity per € 178 125 159 904 11.4 171 365
share
--------------------------------------------------------------------------------
Dividend % 25.4
payout ratio,
A shares
--------------------------------------------------------------------------------
Dividend % 10.0
payout ratio,
B shares
--------------------------------------------------------------------------------
Number of
shares
--------------------------------------------------------------------------------
- Series A pcs 2 078 2 078 2 078 2 078 2 078
shares
--------------------------------------------------------------------------------
- Series B pcs 1 247 1 247 1 247 1 247 1 247
shares
--------------------------------------------------------------------------------
Total pcs 3 325 3 325 3 325 3 325 3 325
--------------------------------------------------------------------------------
Says Jukka Ruusunen, President and CEO of Fingrid, about the interim report:"Electricity consumption remains at the same level""During the first half of the year, electricity consumption remained at last
year's level.
The first half's operative profit was enhanced by the grid tariff increases
implemented at the beginning of the year, and by the decrease in imbalance
power purchase costs and loss energy expenses in comparison with last year. The
congestion income based on the area price difference between Finland and Sweden
decreased from last year by 10 million euros. The costs of reserves increased
by 14 million euros during the review period due to the additional reserve
purchases made to improve frequency quality. The company has traditionally
accounted losses for the second quarter because of the decreases in tariffs and
electricity consumption rates after the winter season."
Fingrid Group's interim report 1 January - 30 June 2013
Accounting principles
Fingrid's interim report has been drawn up in accordance with standard IAS 34,
Interim Financial Reporting. In this interim report, Fingrid has followed the
same principles as in the annual financial statements for 2012.
Financial result
The Group's revenue for the second quarter of the year was 110 million euros
(93 million euros during the corresponding period in 2012). Other operating
income was 2 million euros (1 million euros).
The Group's revenue for the period January - June was 280 million euros (262
million euros during the corresponding period in 2012). Other operating income
was 3 million euros (1 million euros).
The grid service income of the Group rose to 173 million euros (145 million
euros) as a result of the tariff increase of 15 per cent carried out at the
beginning of the year. Electricity consumption remained at the previous year's
level and was 43,4 TWh (43,6 TWh). The sales of imbalance power were 75 million
euros (76 million euros). Cross-border transmission income on the connection
between Finland and Russia rose to 8 million euros (6 million euros). Fingrid's
congestion income between Finland and Sweden decreased significantly, to 5
million euros (15 million euros).
The purchase costs of imbalance power were 59 million euros, significantly less
than last year (68 million euros), which improved the profit for the financial
period. Loss energy costs decreased to 27 million euros (31 million euros) due
to smaller losses compared with the reference period. At the end of June, 97
per cent of Fingrid's projected loss energy procurement for the remaining part
of 2013 had been hedged at an average price of 47.3 euros per megawatt hour.
The costs of reserves, which safeguard the system security of the power
system,increased by 14 million euros during the review period due to the
increased market prices of reserves and the additional reserve purchases made
to improve frequency quality. Depreciations totalled 40 million euros (37
million euros). Maintenance management costs totalled 9 million euros (10
million euros). Personnel costs remained at the previous year's level.
Revenue and other operating Jan-Jun Jan-Ju change Apr-Ju Apr-Ju change
income (million €) 2013 n % n n %
2012 2013 2012
--------------------------------------------------------------------------------
Grid service revenue 173 145 19.3 57 46 24.5
--------------------------------------------------------------------------------
Sales of imblance power 75 76 -0.8 35 30 19.1
--------------------------------------------------------------------------------
ITC income 5 6 -13.5 2 2 60.8
--------------------------------------------------------------------------------
Cross-border transmission 8 6 19.1 3 1 96.6
income
--------------------------------------------------------------------------------
Finland-Estonia congestion 2 2 4.0 2 1 91.0
income*
--------------------------------------------------------------------------------
Peak load capacity income** 9 9 0.3 5 5 0.6
--------------------------------------------------------------------------------
Finland-Sweden congestion 5 15 -69.6 4 8 -47.4
income
--------------------------------------------------------------------------------
Other revenue 3 2 29.3 1 1 33.1
--------------------------------------------------------------------------------
Other operating income 3 1 116.9 2 1 142.8
--------------------------------------------------------------------------------
Revenue and other income 283 264 7.3 111 93 19.1
total
--------------------------------------------------------------------------------
Costs (million €) Jan-Jun Jan-Jun change Apr-Ju Apr-Ju change
2013 2012 % n n %
2013 2012
--------------------------------------------------------------------------------
Purchase of imbalance power 59 68 -12.8 27 26 5.3
--------------------------------------------------------------------------------
Purchase of loss energy 27 31 -13.7 12 13 -9.0
--------------------------------------------------------------------------------
Depreciation 40 37 6.9 20 19 9.3
--------------------------------------------------------------------------------
Finland-Estonia grid rents* 2 2 7.3 2 1 81.4
--------------------------------------------------------------------------------
Reserve costs 32 19 74.1 20 12 67.4
--------------------------------------------------------------------------------
Personnel costs 11 11 5.4 6 6 6.6
--------------------------------------------------------------------------------
Peak load capacity costs** 9 9 -0.4 5 5 -0.1
--------------------------------------------------------------------------------
Maintenance management costs 9 10 -6.3 5 7 -25.3
--------------------------------------------------------------------------------
ITC transmission costs 5 7 -28.6 2 4 -34.7
--------------------------------------------------------------------------------
Other costs 14 11 27.5 7 5 23.6
--------------------------------------------------------------------------------
Costs total 210 206 2.2 107 98 9.6
--------------------------------------------------------------------------------
Operating profit without the 73 58 25.6 4 -4 203.6
fair value of commodity
derivatives
--------------------------------------------------------------------------------
Operating profit of the Group, 69 49 40.4 -10 -5 -99.0
IFRS
--------------------------------------------------------------------------------
*Fingrid's income from the congestion income between Finland and Estonia was
2.2 million euros. The costs (grid rents between Finland and Estonia) were 2.2
million euros, which was paid to the owners of the transmission connection. The
difference received by Fingrid is created during disturbances on the Estlink
connection (no disturbance occurred between January and June 2013).
** The peak load capacity income and costs are related to the securing of the
sufficiency of electricity during peak consumption hours within the framework
of the Finnish Peak Load Capacity Act.
The operating profit of the Group between January and June was 69 million
euros (49 million euros), which contains -4 million euros (-9 million euros) of
changes in the fair value of commodity derivatives. The profit before taxes was
53 million euros (43 million euros). The profit for the financial period was 40
million euros (32 million euros) and the consolidated total comprehensive
income was 36 million euros (35 million euros). The Group's net cash flow from
the operating activities deducted by net cash flow from investing activities
was 39 million euros positive (43 million euros). The equity ratio of the
Group was 28.9 per cent (26.2 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 financial year cannot be directly
estimated on the basis of the six-month profit for the financial period.
Capital expenditure
The company's investment programme is proceeding according to plan. The ongoing
projects include the EstLink 2 submarine cable between Finland and Estonia, the
Ulvila-Kristinestad transmission line, and the Hyvinkää-Hikiä transmission
line. The final sub-project of the major transmission line project
Ylikkälä-Huutokoski from Lappeenranta to Joroinen, the Ylikkälä -Visulahti
section, was inaugurated in May.
Fingrid will continue to make substantial grid investments in the future years,
as well. Fingrid has decided to invest in building a 110-kV switchgear in
Pyhävesi. The new switchgear will clarify the network usage in the region and
improve reliability. Moreover, the investment enables connecting the customer's
new 110 kV substations to the network and building a transmission line from
Mäntyharju to Joutsa.
This spring, Fingrid made procurement decisions concerning the contracts of the
Vähänummi 110 kV and Ontojoki 110 kV substations. The main contractor in both
projects is Infratek Finland Oy. The procurement decision concerning the
alterations of the Imatra - Luukkala transmission line was made in April. The
contractor in charge of the line transfer in the Saimaa Canal area in
Lappeenranta is Eltel Networks Oy.
The extensive five-year project dealing with power lines' stay cable corrosion
was completed in May. In the project, approximately 2,200 grid network line
supports were dug up, several worn components were replaced and new work
methods were developed.
Two serious accidents happened during the implementation of the last phase of
the Ylikkälä - Huutokoski project: one involved the death of a service
provider's employee, and in the other accident, three service provider's
employees sustained injuries. Investigations of the cases and measures to
prevent similar accidents from recurring were immediately initiated.
In the beginning of April, Fingrid released the national 10-year plan for the
grid network as part of the European electricity network planning process. This
plan contains detailed descriptions of Fingrid's major projects, i.e. the
so-called basic grid network solutions. Furthermore, Fingrid is planning to
develop the grid network's cross-border transmission capacity from Finland to
the neighbouring countries.
The net investments of the Group during the second quarter were 29 million
euros (38 million euros). The net investments of the Group between January and
June were 64 million euros (57 million euros).
In June, Fingrid earned the asset management certificate PAS55 (Publicly
Available Specification 55) for another three-year period. The certification
company Lloyd's Register stated that Fingrid's asset management was at a very
high level, even on the international scale. Fingrid was also successful in the
ITAMS (International Transmission Asset Management Study) study measuring the
maturity and efficiency of asset management and reached the Best Performer
class again.
Power system
Electricity consumption in Finland between April and June totalled 18.9
terawatt hours (19.0TWh) during the corresponding period in 2012). Between
January and June, electricity consumption in Finland totalled 43.4 terawatt
hours (43.6 TWh). A total of 32.5 TWh of electricity was transmitted in
Fingrid's grid during the same period, representing 75 per cent of the
electricity consumption in Finland.
Electricity transmissions between Finland and Sweden consisted mainly of
imports to Finland. The limitation of Fenno-Skan 1 connection was extended
until 1st September 2014, because the investigation of cable failure needs
wider and more exhaustive tests than anticipated earlier. During the limitation
Fenno-Skan 1 capacity will be limited to 400 MW on May - September and to 450
MW on October - April.
The transmission capacity of the Fenno-Skan 1 interconnection was limited to
400 megawatts until 1 Sept. 2014 due to the testing required to determine the
reason for the cable failure that occurred in February.
Between April and June, 2.6 TWh of electricity were imported from Sweden to
Finland (3.7 TWh), and 0.3 TWh (0.1 TWh) were exported from Finland to Sweden.
Between January and June, 4.8 TWh of electricity were imported from Sweden to
Finland (6.9 TWh), and 0.6 TWh (0.2 TWh) were exported from Finland to Sweden.
In the electricity transmissions between Finland and Estonia, imports and
exports have alternated in terms of domination. Between April and June, the
volume of electricity imported from Estonia was 0.2 TWh (0.1 TWh), and 0.3 TWh
(0.4 TWh) were exported from Finland to Estonia. The volume of electricity
imported from Estonia to Finland between January and June was 0.4 TWh (0.2
TWh), and 0.6 TWh (0.8 TWh) were exported from Finland to Estonia.
The electricity transmission capacity from Russia to Finland has been fully
availably, but electricity import from Russia has remained at low levels, as
was also the case last year. Between April and June, 0.9 TWh (0.6 TWh) of
electricity were imported from Russia to Finland, and between January and June
the import volume was 2.7 TWh (2.6 TWh).
An unusual disturbance occurred in the grid network during the review period,
as all three HVDC links - Fenno-Skan 1, Fenno-Skan 2 and Estlink 1 - fell out
of use within half an hour in the morning of 3 June 2013. Due to this
interruption, gas turbines were run up and special adjustments were made in the
power system. The disturbance did not affect end users.
Power system operation Jan-Jun Jan-Jun Apr-Jun Apr-Jun
2013 2012 2013 2012
-----------------------------------------------------------------------------
Electricity consumption in Finland TWh 43.4 43.6 18.9 19.0
-----------------------------------------------------------------------------
Fingrid's transmission volume TWh 32.5 31.8 14.9 14.3
-----------------------------------------------------------------------------
Fingrid's loss energy volume TWh 0.5 0.5 0.2 0.2
-----------------------------------------------------------------------------
Electricity transmissions Finland-Sweden
Exports to Sweden TWh 0.6 0.2 0.3 0.1
-----------------------------------------------------------------------------
Imports from Sweden TWh 4.8 6.9 2.6 3.7
-----------------------------------------------------------------------------
Electricity transmissions Finland-Estonia
Exports to Estonia TWh 0.6 0.8 0.3 0.4
-----------------------------------------------------------------------------
Imports from Estonia TWh 0.4 0.2 0.2 0.1
-----------------------------------------------------------------------------
Electricity transmissions Finland-Russia
Imports from RussiaTWh 2.7 2.6 0.9 0.6
-----------------------------------------------------------------------------
Electricity market
The average price (system price) in the Nordic electricity exchange during the
second quarter was 38.75 €/MWh (28.42 €/MWh during the corresponding period in
2012), and the area price for Finland was 39.93 €/MWh (32.42 €/MWh). Between
January and June, the average price in the Nordic spot market was 40.37 €/MWh
(33.44 €/MWh), and the area price for Finland was 41.01 €/MWh (37.45 €/MWh).
The integration of the Baltic region to the Nordic electricity market proceeded
when Nord Pool Spot opened the Latvian Elspot market in the beginning of June.
This also connects the Lithuanian bidding area to the Nordic markets. Latvia
and Lithuania intend to open the Elbas intraday market at the end of this year.
Fingrid's counter trade costs between January and June were approximately 0.5
million euros (2.8 million euros).
Electricity market Jan-Ju Jan-Jun Apr-Ju Apr-Ju
n 2012 n n
2013 2013 2012
--------------------------------------------------------------------------------
Nord Pool system price, average €/MWh 40.37 33.44 38.75 28.42
--------------------------------------------------------------------------------
Area price Finland, average €/MWh 41.01 37.45 39.93 32.42
--------------------------------------------------------------------------------
Congestion income between Finland and Sweden 9.3 30.6 7.9 15.2
million €*
--------------------------------------------------------------------------------
Congestion hours between Finland and 9.3 37.4 11.1 34.8
Sweden%*
--------------------------------------------------------------------------------
Congestion income between Finland and 4.4 4.3 3.4 1.8
Estonia million €*
--------------------------------------------------------------------------------
Congestion hours between Finland and Estonia 29.9 33.4 33.3 38.4
%*
--------------------------------------------------------------------------------
* The congestion income between Finland and Sweden as well as between Finland
and Estonia is divided between the relevant TSOs in equal proportions. The
income and costs of the transmission connections are presented in the tables
under Financial result.
Financing
The financial position of the Group continued to be satisfactory. The net
financial costs of the Group were 10 million euros during the review period of
April - June (2 million euros). The net financial costs between January and
June were 17 million euros (7 million euros), including the negative change of
7 million euros (5 million euros positive) in the fair value of derivatives.
Financial assets recognised at fair value in the income statement, and cash and
cash equivalents amounted to 215 million euros (256 million euros) at 30 June
2013. Moreover, the company has an undrawn revolving credit facility of 250
million euros.
The interest-bearing borrowings totalled 1,192 million euros (1,236 million
euros), of which 1,018 million euros (1,078 million euros) were long-term and
174 million euros (159 million euros) were short-term.
The counterparty risk involved in the derivative contracts relating to
financing was 50 million euros (69 million euros).
Personnel
The total personnel of the Fingrid Group averaged 275 (267) during the review
period.
Auditing
The consolidated figures in this Interim Report are unaudited.
Annual General Meeting
Fingrid Oyj's Annual General Meeting took place in Helsinki on 27 May 2013. The
General Meeting accepted the financial statements for 2012, confirmed the
income statement and balance sheet, and discharged the members of the Board of
Directors and the President and CEO from liability.
The Annual General Meeting elected Helena Walldén (M.Sc., Tech.) as the
Chairman of the Board of Directors and Juha Majanen (Budget Counsellor,
Ministry of Finance) as the Deputy Chairman. The other members of the Board of
Directors are Sirpa Ojala, CEO of Digita Networks Oy, Matti Rusanen, Head of
Listed Securities, Ilmarinen Mutual Pension Insurance Company, and Esko Torsti,
Head of Non-listed Investments, Ilmarinen Mutual Pension Insurance Company.
Events after review period and outlook for the remaining part of the year
The Finnish Parliament passed the bill for the new Electricity Markets Act in
June 2013. The Act stipulates the separating of grid ownership and amends the
definition of grid. In addition, it contains a clause on the area of
responsibility of the grid owner with system responsibility. The Act also
contains more detailed stipulations about grid development and the transparency
of the grid owner's investment plans.
No substantial events or changes have occurred in Fingrid's operations or
financial standing after the end of the financial period.
The company raised its tariffs by 15 per cent as of 1 Jan. 2013. The company
proceeds with the implementation of its long-term 1.7-billion euro investment
programme. Investments will be financed by increased external funding.
Fingrid Group's profit for the financial year 2013 before taxes and without the
change in the fair value of derivatives is expected to increase slightly from
the previous year. The uncertainty involved in electricity consumption,
congestion income and in cross-border income on the interconnections from
Russia makes it difficult to anticipate Fingrid's financial result for the
entire year.
Board of Directors
Appendices: Tables for the interim report 1 January - 30 June 2013
Further information:
Jukka Ruusunen, President & CEO, tel. +358 (0)30 395 5140 or +358 (0)40 593 8428
Tom Pippingsköld, CFO, +358 (0)30 395 5157 or +358 (0)40 519 5041
Appendices: Tables for the interim report 1 January - 30 June 2013
Condensed consolidated statement of comprehensive income, million euros
--------------------------------------------------------------------------------
-
2013 2012 Change 2013 2012 Change 2012
Jan-Ju Jan-Ju Apr-Jun Apr-Ju Jan-De
n n n c
--------------------------------------------------------------------------------
Revenue 280.1 262.3 17.8 109.5 92.7 16.8 522.1
--------------------------------------------------------------------------------
Other operating income 2.7 1.2 1.5 1.8 0.7 1 3.8
--------------------------------------------------------------------------------
Depreciation and -39.8 -37.3 -2.6 -20.5 -18.7 -1.7 -75.7
amortisation
expense
--------------------------------------------------------------------------------
Operating expenses -174.0 -177.2 3.1 -101.0 -79.8 -21.1 -355.6
--------------------------------------------------------------------------------
Operating profit 69.0 49.1 19.8 -10.2 -5.1 -5.1 94.6
--------------------------------------------------------------------------------
Finance income and -16.7 -6.9 -9.8 -10.1 -2.5 -7.6 -7.2
costs
--------------------------------------------------------------------------------
Portion of profit of 0.4 0.4 0.0 0.2 0.1 0.0 0.9
associated companies
--------------------------------------------------------------------------------
Profit before taxes 52.7 42.6 10.1 -20.1 -7.5 -12.7 88.3
--------------------------------------------------------------------------------
Income taxes -12.8 -10.3 -2.5 5 1.9 3.1 -21.3
--------------------------------------------------------------------------------
Profit for the period 39.9 32.2 7.7 -15.2 -5.6 -9.6 67.0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Other comprehensive
income
--------------------------------------------------------------------------------
Cash flow hedges -3.6 2.8 -6.4 0.8 -0.6 1.4 6.1
--------------------------------------------------------------------------------
Translation reserve -0.6 0.1 -0.8 -0.2 1.4 -1.6 0.1
--------------------------------------------------------------------------------
Available-for-sale 0.0 0.0 0.0 0,0 0.0 0.0 0.0
financial assets
--------------------------------------------------------------------------------
Total comprehensive 35.6 35.1 0.5 -14.6 -4.9 -9.8 73.2
income for the year
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit attributable
to:
--------------------------------------------------------------------------------
Equity holders of the 39.9 32.2 7.7 -15.2 -5.6 -9.6 67.0
company
--------------------------------------------------------------------------------
Total comprehensive
income attributable
to:
--------------------------------------------------------------------------------
Equity holders of the 35.6 35.1 0.5 -14.6 -4.9 -9.8 73.2
company
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Earnings per share 11 990 9 687 2 303 - 4 560 -1 685 - 2 875 20 159
(euros)* belonging to
the owners of the
parent company,
calculated from
profit
--------------------------------------------------------------------------------
* no dilution effect
Condensed consolidated balance sheet, million 2013 2012 Change 2012
euros 30 Jun 30 Jun 31 Dec
--------------------------------------------------------------------------------
ASSETS
--------------------------------------------------------------------------------
Non-current assets
--------------------------------------------------------------------------------
Goodwill 87.9 87.9 0.0 87.9
--------------------------------------------------------------------------------
Intangible assets 91.4 90.9 0.5 91.1
--------------------------------------------------------------------------------
Property, plant and equipment 1 506.2 1 439.5 66.7 1 484.7
--------------------------------------------------------------------------------
Investments 8.4 7.4 0.9 8.6
--------------------------------------------------------------------------------
Derivatives 52.6 68.6 -16.0 81.7
--------------------------------------------------------------------------------
Receivables 18.2 20.3 -2.1 21.7
--------------------------------------------------------------------------------
Current assets
--------------------------------------------------------------------------------
Inventories 11.8 8.0 3.9 10.4
--------------------------------------------------------------------------------
Derivatives 1.8 7.2 -5.4 3.9
--------------------------------------------------------------------------------
Receivables 61.6 45.5 16.1 88.3
--------------------------------------------------------------------------------
Financial assets recognised in income 210.8 255.5 -44.6 207.4
statement
at fair value
--------------------------------------------------------------------------------
Cash and cash equivalents 3.7 0.6 3.1 6.4
--------------------------------------------------------------------------------
Total assets 2 054.4 2 031.3 23.1 2 092.0
--------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY AND LIABILITIES
--------------------------------------------------------------------------------
Shareholders' equity belonging to the owners
of the parent company
--------------------------------------------------------------------------------
Shareholders' equity 592.3 531.7 60.6 569.8
--------------------------------------------------------------------------------
Non-current liabilities
--------------------------------------------------------------------------------
Non-current interest-bearing liabilities 1 017.5 1 077.5 -60.0 1 032.2
--------------------------------------------------------------------------------
Derivatives 38.4 39.8 -1.5 30.1
--------------------------------------------------------------------------------
Other non-current liabilities 160.2 148.2 12.1 154.4
--------------------------------------------------------------------------------
Current liabilities
--------------------------------------------------------------------------------
Current interest-bearing liabilities 174.3 158.7 15.6 211.9
--------------------------------------------------------------------------------
Derivatives 7.5 0.8 6.7 10.8
--------------------------------------------------------------------------------
Trade and other payables 64.2 74.6 -10.3 82.8
--------------------------------------------------------------------------------
Total shareholders' equity and liabilities 2 054.4 2 031.3 23.1 2 092.0
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY, MILLION EUROS
--------------------------------------------------------------------------------
-
Attributable to equity Share Share Revalua-t Transla- Retained Total
holders of the parent capita premium ion tion earnings equity
company l account reserve reserve
--------------------------------------------------------------------------------
Balance at 1 Jan 2012 55.9 55.9 -13.7 0.6 408.6 507.3
--------------------------------------------------------------------------------
Comprehensive income
--------------------------------------------------------------------------------
Profit or loss 32.2 32.2
--------------------------------------------------------------------------------
Other comprehensive
income
--------------------------------------------------------------------------------
Cash flow hedges 2.8 2.8
--------------------------------------------------------------------------------
Translation reserve 0.1 0.1
--------------------------------------------------------------------------------
Total other 2.8 0.1 2.9
comprehensive income
adjusted by tax
effects
--------------------------------------------------------------------------------
Total comprehensive 2.8 0.1 32.2 35.1
income
--------------------------------------------------------------------------------
Transactions with
owners
--------------------------------------------------------------------------------
Dividens relating to -10.8 -10.8
2011
--------------------------------------------------------------------------------
Balance at 30 Jun 2012 55.9 55.9 -10.9 0.7 430.0 531.7
--------------------------------------------------------------------------------
Comprehensive income
--------------------------------------------------------------------------------
Profit or loss 34.8 34.8
--------------------------------------------------------------------------------
Other comprehensive
income
--------------------------------------------------------------------------------
Cash flow hedges 3.3 3.3
--------------------------------------------------------------------------------
Translation reserve 0.0 0.0
--------------------------------------------------------------------------------
Items related to 0.0 0.0
long-term asset items
available-for-sale
--------------------------------------------------------------------------------
Total other 3.3 0.0 3.3
comprehensive income
adjusted by tax
effects
--------------------------------------------------------------------------------
Total comprehensive 3.3 0.0 34.8 38.1
income
--------------------------------------------------------------------------------
Balance at 1 Jan 2013 55.9 55.9 -7.6 0.6 464.9 569.8
--------------------------------------------------------------------------------
Comprehensive income
--------------------------------------------------------------------------------
Profit or loss 39.9 39.9
--------------------------------------------------------------------------------
Other comprehensive
income
--------------------------------------------------------------------------------
Cash flow hedges -3.6 -3.6
--------------------------------------------------------------------------------
Translation reserve -0.6 -0.6
--------------------------------------------------------------------------------
Items related to 0.0 0.0
long-term asset items
available-for-sale
--------------------------------------------------------------------------------
Total other -3.6 -0.6 -4.2
comprehensive income
adjusted by tax
effects
--------------------------------------------------------------------------------
Total comprehensive -3.6 -0.6 39.9 35.6
income
--------------------------------------------------------------------------------
Transactions with
owners
--------------------------------------------------------------------------------
Dividens relating to -13.1 -13.1
2012
--------------------------------------------------------------------------------
Balance at 30 Jun 2013 55.9 55.9 -11.2 0.0 491.6 592.3
--------------------------------------------------------------------------------
Condensed consolidated cash flow statement, million 2013 2012 2012
euros Jan-Jun Jan-Jun Jan-Dec
--------------------------------------------------------------------------------
Cash flow from operating activities
--------------------------------------------------------------------------------
Profit for the financial year 39.9 32.2 67.0
--------------------------------------------------------------------------------
Adjustments 71.3 63.0 114.2
--------------------------------------------------------------------------------
Changes in working capital 12.2 28.8 -3.7
--------------------------------------------------------------------------------
Interests paid -12.5 -13.0 -21.8
--------------------------------------------------------------------------------
Interests received 0.8 2.0 3.6
--------------------------------------------------------------------------------
Taxes paid -6.8 -6.6 -14.6
--------------------------------------------------------------------------------
Net cash flow from operating activities 104.9 106.5 144.6
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash flow from investing activities
--------------------------------------------------------------------------------
Purchase of property, plant and equipment -67.5 -60.1 -139.6
--------------------------------------------------------------------------------
Purchase of intangible assets -1.7 -2.9 -5.1
--------------------------------------------------------------------------------
Purchase of other assets 0.0
--------------------------------------------------------------------------------
Proceeds from sale of property, plant and equipment 4.0 0.6
--------------------------------------------------------------------------------
Dividends received 0.0 1.3 1.3
--------------------------------------------------------------------------------
Interest paid -0.8 -1.4 -3.1
--------------------------------------------------------------------------------
Net cash flow from investing activities -66.0 -63.1 -145.9
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash flow from financing activities
--------------------------------------------------------------------------------
Withdrawal of loans 128.3 521.2 643.5
--------------------------------------------------------------------------------
Repayment of loans -159.8 -505.7 -621.5
--------------------------------------------------------------------------------
Dividends paid -6.7 -6.7 -10.8
--------------------------------------------------------------------------------
Net cash flow from financing activities -38.2 8.8 11.3
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net change in cash and cash equivalents 0.7 52.2 10.0
--------------------------------------------------------------------------------
Cash and cash equivalents 1 Jan 213.8 203.8 203.8
--------------------------------------------------------------------------------
Cash and cash equivalents 31 Jun 214.5 256.1 213.8
--------------------------------------------------------------------------------
QUARTERLY FIGURES
---------------------------------------------------------------------------
Q2/2013 Q1/2013 Q4/2012 Q3/2012 Q2/2012 Q1/2012
--------------------------------------------------------------------------
Revenue Me 109,5 170.6 153.7 106.0 92.7 169.6
--------------------------------------------------------------------------
Operating profit Me -10,2 79.1 38.5 7.1 -5.1 54.2
--------------------------------------------------------------------------
Operating profit % -9,3 46.4 25.0 6.7 -5.5 32.0
--------------------------------------------------------------------------
CAPITAL EXPENDITURE, MILLION EUROS 2013 2012
Jan-Jun Jan-Jun
-----------------------------------------------------
Capital expenditure in the grid 56.5 42.3
-----------------------------------------------------
Substations 34.7 19.7
-----------------------------------------------------
Transmission lines 21.8 22.6
-----------------------------------------------------
-----------------------------------------------------
Capital expenditure in gas turbines 1.9 9.6
-----------------------------------------------------
Present gas turbine plants 2.0
-----------------------------------------------------
New gas turbine plants 1.9 7.6
-----------------------------------------------------
-----------------------------------------------------
Other capital expenditure 5.1 4.8
-----------------------------------------------------
ICT 4.0 3.2
-----------------------------------------------------
Others 1.1 1.6
-----------------------------------------------------
-----------------------------------------------------
Total capital expenditure 63.6 56.7
-----------------------------------------------------
R&D EXPENDITURE, MILLION EUROS
----------------------------------------------------
2013 2012
Jan-Jun Jan-Jun
----------------------------------------------------
R&D expenditure 0.9 0.6
----------------------------------------------------
DERIVATIVE INSTRUMENTS, MILLION EUROS
--------------------------------------------------------------------------------
-
30 Jun 2013 30 Jun 2012
--------------------------------------------------------------------------------
Interes rate and Fair Fair Net Nomina Fair Fair Net Nomina
currency value value fair l value value fair l
derivatives pos. neg. value value pos. neg. value value
--------------------------------------------------------------------------------
Cross-currency 52 -6 46 366 75 -8 67 444
swaps
--------------------------------------------------------------------------------
Forward 0 0 3 0 0 5
contracts
--------------------------------------------------------------------------------
Interest rate 10 -7 3 421 10 -8 2 346
swaps
--------------------------------------------------------------------------------
Call options, 0 0 665 0 0 850
bought
--------------------------------------------------------------------------------
Total 62 -13 50 1 455 85 -16 69 1 644
================================================================================
--------------------------------------------------------------------------------
Electricity Fair Fair Net Volume Fair Fair Net Volume
derivatives valuep valuen fair TWh value valuen fair TWh
os. eg. value pos. eg. value
--------------------------------------------------------------------------------
Electricity -29 -29 3.32 -28 -28 3.88
forward
contracts,
designated as
hedge
accounting,
NASDAX OMX
Commodities
--------------------------------------------------------------------------------
Electricity -7 -7 0.70 0 0 0.02
forward
contracts, not
designated as
hedge
accounting,
NASDAX OMX
Commodities
--------------------------------------------------------------------------------
Total -36 -36 4.01 0 -28 -28 3.86
================================================================================
DERIVATIVE INSTRUMENTS, MILLION EUROS
------------------------------------------------------------------------
31 Dec 2012
--------------------------------------------------------------------------------
Interes rate and currency derivatives Fair Fair Net Nomi-na
value value fair l value
pos. neg. value
--------------------------------------------------------------------------------
Cross-currency swaps 79 -7 72 419
--------------------------------------------------------------------------------
Forward contracts 0 0 3
--------------------------------------------------------------------------------
Interest rate swaps 15 -10 5 406
--------------------------------------------------------------------------------
Call options, bought 0 0 810
--------------------------------------------------------------------------------
Total 94 -16 77 1 637
================================================================================
--------------------------------------------------------------------------------
Electricity derivatives Fair Fair Net Volume
valuepos value fair TWh
. neg. value
--------------------------------------------------------------------------------
Electricity forward contracts, designated -17 -17 2.68
as hedge accounting,
NASDAX OMX Commodities
--------------------------------------------------------------------------------
Electricity forward contracts, not -10 -10 1.20
designated as hedge accounting, NASDAX
OMX Commodities
--------------------------------------------------------------------------------
Total -27 -27 3.88
================================================================================
FAIR VALUE HIERARCHY, MILLION EUROS 30 Jun 2013
--------------------------------------------------------------------------------
Level 1 Level 2 Level 3
--------------------------------------------------------------------------------
Financial assets held at fair value
--------------------------------------------------------------------------------
Available-for-sale investments 0 0
--------------------------------------------------------------------------------
Interest rate and currency 50
derivatives
--------------------------------------------------------------------------------
Financial assets recognised at fair 20 191
value
--------------------------------------------------------------------------------
Financial assets held at fair value total 20 241
================================================================================
--------------------------------------------------------------------------------
Financial liabilities held at fair value
--------------------------------------------------------------------------------
Electricity forward contracts, NASDAQ OMX Commodities -36
--------------------------------------------------------------------------------
Financial liabilities held at fair value total -36
--------------------------------------------------------------------------------
Fair value measurement of assets and liabilities are categorised in a
three-level hierarchy in the fair value presentation. 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 observerable market parameters
either directly or indirectly.
Level 3: inputs are unobserverable market parameters.
Commitments and contingencies, million 30 Jun 2013 30 Jun 2012 31 Dec 2012
euros
--------------------------------------------------------------------------------
Pledges / bank balances 0 0 0
--------------------------------------------------------------------------------
Rental liabilities 27 25 25
--------------------------------------------------------------------------------
Commitment fee of revolving credit 2 2 2
facility
--------------------------------------------------------------------------------
Total 29 27 27
--------------------------------------------------------------------------------
Capital commitments 224 257 217
--------------------------------------------------------------------------------
Other financial liabilities 1 2 2
--------------------------------------------------------------------------------
Changes in property, plant and equipment, 30 Jun 30 Jun 31 Dec
million euros 2013 2012 2012
--------------------------------------------------------------------------------
Carrying amount at beginning of period 1 485 1 420 1 420
--------------------------------------------------------------------------------
Increases 62 56 138
--------------------------------------------------------------------------------
Decreases -2 0
--------------------------------------------------------------------------------
Depreciation and amortisation expense -38 -36 -73
--------------------------------------------------------------------------------
Carrying amount at end of period 1 506 1 439 1 485
--------------------------------------------------------------------------------
Transactions with associated companies, 30 Jun 30 Jun 31 Dec
million euros 2013 2012 2012
--------------------------------------------------------------------------------
Sales 3 3 7
--------------------------------------------------------------------------------
Purchases 20 26 47
--------------------------------------------------------------------------------
Receivables 1 1 2
--------------------------------------------------------------------------------
Liabilities 0 0
--------------------------------------------------------------------------------
Transactions with related parties, 30 Jun 2013 30 Jun 2012 31 Dec 2012
million euros
--------------------------------------------------------------------------------
Owners
--------------------------------------------------------------------------------
Purchases 0 0 0
--------------------------------------------------------------------------------
Liabilities 0
--------------------------------------------------------------------------------
Other related parties
--------------------------------------------------------------------------------
Sales 48 40 67
--------------------------------------------------------------------------------
Purchases 19 26 42
--------------------------------------------------------------------------------
Receivables 4 0 1
--------------------------------------------------------------------------------
Liabilities 3 2 8
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Accounting principles. This interim report has been drawn up in accordance with
standard IAS 34, Interim Financial Reporting. In this interim report, Fingrid
has followed the same principles as in the annual financial statements for
2012.
Segment reporting. The entire business of the Fingrid Group is deemed to
comprise transmission system operation in Finland with system responsibility,
only constituting a single segment. There are no essential differences in the
risks and profitability of individual products and services. This is why
segment reporting in accordance with the IFRS 8 standard is not presented.
Corporate rearrangements. There have been no changes in the Group structure
during the period reviewed.
Seasonal fluctuation. The Group's operations are characterised by extensive
seasonal fluctuations.
General clause. Certain statements in this release concern the future and are
based on the present views of management. Due to their nature, they contain
some risk and uncertainty and are subject to changes in economy and the
relevant business.
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