2014-07-24 11:41:32 CEST
2014-07-24 11:42:35 CEST
REGULATED INFORMATION
Fingrid Oyj - Interim report (Q1 and Q3)
Fingrid Group's Interim report 1 Jan - 30 Jun 2014
Helsinki, Finland, 2014-07-24 11:41 CEST (GLOBE NEWSWIRE) -- Fingrid Oyj
Interim report 24.7.2014 at 12.40 EET
Figures in brackets refer to the corresponding period the previous year, unless
otherwise stated.
Financial development Jan-Jun 2014
-- The Group's turnover between January and June was 305 (280) million euros
-- The Group's net profit was 99 (69) million euros.
-- Consolidated profit for the financial period was 76 (40) million euros.
-- The cash flow from the Group's operations with capital expenditure deducted
was 97 (39) million euros
-- Interest-bearing borrowings totalled 1,056 million euros (977 million).
-- Capital expenditure was 57 (64) million euros.
-- The equity ratio was 29.8% (28.9%)
-- Earnings per share totalled 22,906 (11,990) euros
Financial development Apr-Jun 2014
-- The Group's turnover between April and June was 114 (110) million euros
-- Operating profit for the second quarter of the year was 20 million euros
(-10 million).
-- The Group's profit between April and June was 14 (-15) million euros
KEY FIGURES 1-6/14 1-6/13 change 4-6/14 4-6/13 change 1-12/13
% %
--------------------------------------------------------------------------------
Turnover MEUR 305.3 280.1 9.0 114.1 109.5 4.1 543.1
--------------------------------------------------------------------------------
Capital MEUR 57.5 63.6 -9.6 25.9 29.1 -11.2 225.3
expenditur
e, gross
--------------------------------------------------------------------------------
- % of % 18.8 22.7 22.7 26.6 41.5
turnover
--------------------------------------------------------------------------------
Research MEUR 0.9 0.9 1.9 0.5 0.4 11.7 1.8
and
developmen
t expenses
--------------------------------------------------------------------------------
- % of % 0.3 0.3 0.4 0.4 0.3
turnover
--------------------------------------------------------------------------------
Personnel, 297 282 5.3 306 288 6.2 277
average
--------------------------------------------------------------------------------
Personnel 317 296 7.1 317 296 7.1 287
at the end
of period
--------------------------------------------------------------------------------
Salaries MEUR 10.4 9.4 10.2 5.2 4.8 8.1 19.0
and
remunerati
ons total
--------------------------------------------------------------------------------
Operating MEUR 99.0 69.0 43.6 19.7 -10.2 293.4 115.3
profit
--------------------------------------------------------------------------------
- % of % 32.4 24.6 17.2 -9.3 21.2
turnover
--------------------------------------------------------------------------------
Profit MEUR 95.0 52.7 80.4 17.2 -20.1 185.5 87.3
before
taxes
--------------------------------------------------------------------------------
- % of % 31.1 18.8 15.1 -18.4 16.1
turnover
--------------------------------------------------------------------------------
Profit for MEUR 76.2 39.9 91.0 13.8 -15.2 191.3 90.7
the
financial
period
--------------------------------------------------------------------------------
Comprehensi MEUR 75.8 35.6 112.8 13.9 -14.6 195.1 86.1
ve income
--------------------------------------------------------------------------------
Return on % 6.3
investment
s (ROI)
--------------------------------------------------------------------------------
Return on % 15.0
equity
(ROE)
--------------------------------------------------------------------------------
Equity % 29.8 28.9 3.1 29.8 28.9 3.1 29.5
ratio
--------------------------------------------------------------------------------
Interest-be MEUR 1056.2 977.3 8.1 1056.2 977.3 8.1 1076.7
aring net
borrowings
--------------------------------------------------------------------------------
Gearing 1.7 1.7 1.7 1.7 1.7
--------------------------------------------------------------------------------
Profit/shar € 22 905.6 11990.3 91.0 27 277.9
e
--------------------------------------------------------------------------------
Dividend/A € 29788.9
shares
--------------------------------------------------------------------------------
Dividend/B € 16038.5
shares
--------------------------------------------------------------------------------
Equity/shar € 191 459 178 125 7.5 193 293
e
--------------------------------------------------------------------------------
Dividend % 109.2
payout
ratio A
shares
--------------------------------------------------------------------------------
Dividend % 58.8
payout
ratio
series B
shares
--------------------------------------------------------------------------------
Number of
shares
--------------------------------------------------------------------------------
- Series A shares 2 078 2 078 2 078 2 078 2 078
shares
--------------------------------------------------------------------------------
- Series B shares 1 247 1 247 1 247 1 247 1 247
shares
--------------------------------------------------------------------------------
Total shares 3 325 3 325 3 325 3 325 3 325
--------------------------------------------------------------------------------
President of Fingrid Jukka Ruusunen: "Strong import of electricity in the first
half-year”
Fingrid's first half-year result developed favourably on the whole.
Fingrid's transmission connections to Sweden were in heavy use during the
period. The transmission connections, however, are not sufficient in all
conditions for such great import of electricity, which results in a higher
regional price for electricity in Finland compared to other Nordic countries.
In a maximal import situation, faults in transmission connections are
immediately visible in the price of electricity. Because of the market
situation, in the first half of the year Fingrid's congestion income has been
clearly higher than in the previous year.
The company has continued the implementation of its investment programme, which
amounts to about 150 million euros per year. The focus of investments has now
moved to the west coast. Increased wind power construction is also evident in
the company's investment programme. During the spring, the company has made an
investment decision concerning five power lines and substations, which connect
wind power to the main grid. The total value of these investments is more than
50 million euros and the projects will be completed during 2015 and 2016.
Calculation principles
Fingrid's interim report has been prepared 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 2013, with the
exception of hedge accounting for electricity derivatives, which was
discontinued at the beginning of 2014, as a result of which the entire change
in fair value of the said derivatives has been immediately recognised and will
continue to be immediately recognised in the income statement. The hedge
reserve of 11.6 million euros in the balance sheet will be recognised in the
income statement and deducted from the profit in equal instalments during 2015
and 2016.
Financial result
Group turnover for the second quarter of the year was 114 (109) million euros.
Grid revenue was 61 (57) million euros in the the second quarter. Other
operating income was 1 (2) million euros. Costs for the second quarter were 106
(107) million euros.
The Group's turnover between January and June was 305 (280) million euros.
During the first half of the year, grid revenue rose to 185 (173) million
euros, mainly as a result of the tariff increase of 8% carried out at the
beginning of the year. Other operating income was 2 (3) million euros. Costs
for the period January to June were 211 (210) million euros.
In the period January-June, the consumption of electricity remained on the same
level as last year at 42.7 (43.4) TWh. Sales of imbalance power were 77 (75)
million euros. Fingrid's congestion income from connections between Finland and
Sweden increased significantly to 24 (5) million euros. The increase in
congestion income resulted from the market situation in which Finland has
imported a significant amount of electricity from Sweden. Cross-border
transmission income from the connection between Finland and Russia decreased to
4 (8) million euros. This is a result of a reduction in import from Russia.
Congestion income from connections between Finland and Estonia decreased, and
European inter-TSO compensation income increased from the level in the
corresponding period of last year.
Imbalance power costs were less than last year at 52 (58) million euros. The
decision was therefore made in June to reduce the prices of the balance service
from 1 August 2014. Loss energy costs increased to 34 (27) million euros as a
result of greater losses and the increased price of loss energy compared to the
reference period. At the end of June, approximately 96 (97) per cent of
Fingrid's projected loss energy procurement for the remaining part of 2014 had
been hedged at an average price of 42.4 (47.3) euros per megawatt hour.
The costs of reserves, which safeguard the system security of the power system,
decreased by 28 (32) million euros during the review period due to a fall in
the market prices of reserves and as a result of the good market situation. As
a consequence of the completion of several investment projects, depreciations
increased by 6 million euros. Maintenance management costs fell to 7 (9)
million euros. The costs for repairing the fault in the Fenno-Skan 1 direct
current connection increased the maintenance management costs from the previous
year.
Turnover and other income 1-6/14 1-6/13 change 4-6/14 4-6/13 change
(million €) €) % %
--------------------------------------------------------------------------------
Grid service revenue 185 173 6.9 61 57 6.5
--------------------------------------------------------------------------------
Sales of imbalance power 77 75 2.2 35 35 0.1
--------------------------------------------------------------------------------
ITC income 7 5 27.4 3 2 14.0
--------------------------------------------------------------------------------
Cross-border transmission 4 8 -46.3 2 3 -39.9
income
--------------------------------------------------------------------------------
Finland-Estonia congestion 1 2 -73.9 0 2 -90.7
income*
--------------------------------------------------------------------------------
Peak load capacity income** 4 9 -56.9 2 5 -57.4
--------------------------------------------------------------------------------
Finland-Sweden congestion 24 5 412.2 9 4 123.0
income
--------------------------------------------------------------------------------
Other turnover 4 3 51.4 2 1 56.1
--------------------------------------------------------------------------------
Other operating income 2 3 -37.0 1 2 -70.6
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Turnover and other income 307 283 8.6 115 111 3.0
total
--------------------------------------------------------------------------------
Costs (million €) 1-6/14 1-6/13 change 4-6/14 4-6/13 change
% %
--------------------------------------------------------------------------------
Purchase of imbalance power 52 58 -11.8 24 27 -9.3
--------------------------------------------------------------------------------
Cost of loss energy 34 27 25.4 16 12 29.0
--------------------------------------------------------------------------------
Depreciation 46 40 14.6 24 20 15.0
--------------------------------------------------------------------------------
Estlink grid rents 0 2 -100.0 0 2 -100.0
--------------------------------------------------------------------------------
Cost of reserves 28 32 -12.9 15 20 -24.6
--------------------------------------------------------------------------------
Personnel costs 12 11 8.0 6 6 3.5
--------------------------------------------------------------------------------
Cost of peak load capacity** 4 9 -57.6 2 5 -57.7
--------------------------------------------------------------------------------
Maintenance management costs 7 9 -27.9 4 5 -24.9
--------------------------------------------------------------------------------
ITC charges 5 5 6.5 2 2 -0.3
--------------------------------------------------------------------------------
Other costs 24 15 57.4 12 7 72.3
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Costs total 211 210 0.6 106 107 -1.1
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Operating profit excluding the 96 73 31.4 9 4 103.8
change in the fair value of
commodity derivatives
--------------------------------------------------------------------------------
Operating profit of Group, IFRS 99 69 43.6 20 -10 293.4
--------------------------------------------------------------------------------
*Fingrid's income from the congestion income between Finland and Estonia was
0.6 million euros.There were no costs (Finland-Estonia grid rental) during the
period under review, since the EstLink connection has been under Fingrid's
ownership since 30.12.2013.Before the transferral of ownership, congestion
income profits between Finland and Estonia were paid as grid rental to the
owners of the connection.
**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.
Group operating profit for the second quarter of the year was 19.7 (-10.2)
million euros. The profit before taxes was 17.2 (-20.1) million euros. Profit
in the review period was 13.8 (-15.2) million euros and total comprehensive
income 13.9 (-14.6) million euros. In the review period, net cash flow from the
operations of the Group with capital expenditure deducted was 24 (39) million
euros positive.
The operating profit of the Group in the first half of the year was 99 (69)
million euros. The profit before taxes was 95 (53) million euros. Profit for
the financial period was 76 (40) million euros and total comprehensive income
76 (36) million euros. The greatest positive differences from the corresponding
period the previous year can be attributed to changes in the fair value of
derivatives (19 million euros) and congestion income from the Nordic countries
(19 million euros). In the first half year, cash flow from the operations of
the Group with capital expenditure deducted was 97 (39) million euros positive.
The equity ratio was 29.8 (28.9) 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 review period.
Investments and maintenance
Fingrid's investment programme is proceeding according to plan. Dozens of
projects to improve the operational reliability and transmission capacity of
the main grid are ongoing in different parts of Finland. The focus of the
investment programme is moving to the west coast. Significant projects are the
EUR 25.5-million Hikiä-Forssa project and the EUR 16.7-million
Ulvila-Kristinestad project.
In the review period, the decision was made to construct a 400kV power line
between Hirvisuo and Kalajoki, the total costs of which will be about 18
million euros. During the spring, Fingrid made five investment decisions, which
will connect wind power to the main grid. The total value of investments to be
completed in 2015-2016 exceeds 50 million euros. According to Finland's energy
and climate strategy, the production of wind power will be increased to 9
terawatt hours by 2025.
The operational reliability of power lines has been improved by clearing about
5,000 ha. of land around the lines during this year and by taking care of trees
in about 900 km of marginal zones.
During the spring, according to an ITOMS (International Transmission Operations& Maintenance Study), Fingrid was found to be amongst the best in the world in
maintenance management in terms of both quality and costs.
Power system
Electricity consumption in Finland in the period April-June was 18.9 (18.9)
terawatt hours. Between January and June, electricity consumption in Finland
totalled 42.7 (43.4) terawatt hours. A total of 34 (32.5) terawatt hours of
electricity was transmitted in Fingrid's grid during the same period,
representing 79.6 per cent of the electricity consumption in Finland.
Between April and June, 4.2 (2.6) TWh of electricity was imported from Sweden
to Finland, and 0.04 (0.3) TWh was exported from Finland to Sweden. Between
January and June, 9.3 (4.8) TWh of electricity was imported from Sweden to
Finland, and 0.07 (0.6) TWh was exported from Finland to Sweden.
Between April and June, the volume of electricity imported from Estonia was
0.02 (0.2) TWh and 1.0 (0.3) TWh was exported from Finland to Estonia. The
volume of electricity imported from Estonia to Finland between January and June
was 0.03 (0.4) TWh and 2.3 (0.6) TWh was exported from Finland to Estonia.
Between April and June, 0.5 (0.9) TWh of electricity was imported from Russia
to Finland, and between January and June the import volume was 1.3 (2.7) TWh.
The transmission capacity of electricity from Russia to Finland has been fully
available, with the exception of maintenance work performed on the Russian grid
during April. During the maintenance work, the transmission capacity was less
than normal, but still sufficient for market needs. The import of electricity
from Russia has been small, as it was the previous year. Import fluctuation
within 24-hour periods, however, has been great.
The Fenno-Skan 1 direct current connection between Finland and Sweden was
disconnected from the grid on 25 May 2014 and was out of use until 27 May 2014.
The Estonian direct current connection EstLink 2 was disconnected on 25 June
and reconnected on 26 June. Fenno-Skan 1 was disconnected from the grid on 28
June and reconnected on 29 June. Ongoing investment work in Ostrobothnia
required outage arrangements and the operational reliability of the main grid
was ensured in May-June by purchasing local electricity production for the grid
and by using Fingrid's Kristiina reserve power plant.
Power system operation 1-6/14 1-6/13 4-6/14 4-6/13
--------------------------------------------------------------------------
Electricity consumption in Finland TWh 42.7 43.4 18.9 18.9
--------------------------------------------------------------------------
Fingrid's transmission volume TWh 34.0 32.5 15.8 14.9
--------------------------------------------------------------------------
Fingrid's loss energy volume TWh 0.6 0.5 0.3 0.2
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Electricity transmission Finland - Sweden
Exports to Sweden TWh 0.07 0.6 0.04 0.3
--------------------------------------------------------------------------
Imports from Sweden TWh 9.3 4.8 4.2 2.6
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Electricity transmission Finland - Estonia
Exports to Estonia TWh 2.3 0.6 1.0 0.3
--------------------------------------------------------------------------
Imports from Estonia TWh 0.03 0.4 0.02 0.2
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Electricity transmission Finland - Russia
Imports from Russia TWh 1.3 2.7 0.5 0.9
--------------------------------------------------------------------------
Electricity market
During the second quarter of the year, the average Nordic price (system price)
of electricity was 25.68 (38.75) euros per megawatt hour and the Finnish
regional price was 34.55 (39.93) euros per megawatt hour. During the first half
of the year, the average price (system price) on the Nordic spot markets was
27.92 (40.37) euros per megawatt hour and the Finnish regional price was 34.89
(41.01) euros per megawatt hour.
Fingrid's counter trade costs between January and June were approximately 6.5
(0.5) million euros, which were related to ensuring operational reliability in
connection with outage arrangements required by investment projects and to
disturbances in Fenno-Skan connections.
Electricity market 1-6/14 1-6/13 4-6/14 4-6/13
--------------------------------------------------------------------------------
Nord Pool system price, average €/MWh 27.92 40.36 25.68 38.75
--------------------------------------------------------------------------------
Area price Finland, average €/MWh 34.89 40.99 34.55 39.96
--------------------------------------------------------------------------------
Congestion income between Finland and Sweden, 47.7 9.3 17.7 7.9
million €*
--------------------------------------------------------------------------------
Congestion hours between Finland and Sweden %* 46.7 9.3 31.5 11.1
--------------------------------------------------------------------------------Congestion income between Finland and Estonia, 1.1 4.4 0.3 3.4
million €*
--------------------------------------------------------------------------------
Congestion hours between Finland and Estonia %* 6.86 29.9 2.43 33.3
--------------------------------------------------------------------------------
*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 in the period April-June were 3 (10) million
euros. The net financial costs between January and June were 5 (17) million
euros, including the positive change of 5 (-7) million euros in the fair value
of derivatives. Financial assets recognised at fair value in the income
statement, and cash and cash equivalents amounted to EUR 203 (215) million on
30 June 2014. Moreover, the company has an undrawn revolving credit facility of
250 million euros.
Interest-bearing loans totalled 1,260 (1,192) million euros, of which 1,012
(1,018) million euros were long-term and 248 (174) million euros were
short-term.
The counterparty risk involved in the derivative contracts relating to
financing was 34 (50) million euros.
In the second quarter, the company organised 110 million euros of finance from
private capital markets with a maturity of 15 years.
On 14 April 2014, the international rating agency Standard & Poor's Rating
Services (S&P) changed Fingrid Oyj's outlook changed from stable to negative.
The deterioration in outlook is a direct result of the similar deterioration in
the outlook of the Finnish government, which is Fingrid's majority owner.
Personnel
In the first half of the year, Fingrid had 297 (282) employees, 271 (264) of
whom were employed permanently.
Auditing
The consolidated figures in this Interim Report are unaudited.
Shareholders' meetings and dividend policy
On 6 June 2014, the shareholders concluded a new shareholder agreement
concerning A- and B-shares. On the same day, the Annual General Meeting was
held, which elected the Board of Directors, and decided on changing the
Articles of Association and on holding an extraordinary general meeting. The
changes to the Articles of Association concerned, among other things,
specification of the definitions of the company's field of business, a
regulation concerning distribution of dividends between A- and B-shares,
majority voting requirements concerning a change to the Articles of
Association, the fact that personal deputy members will no longer be elected as
ordinary members of the Board, the repeal of the regulation concerning the
upper age limit for Board members, the Advisory Committee and other changes of
a technical nature. All decisions made at the Annual General Meeting were
reported on 6 June 2014 on the company's website and on the London Stock
Exchange.The Annual General Meeting also accepted the financial statements for
2013, confirmed the income statement and balance sheet, and discharged the
members of the Board of Directors and the President from liability.
The Annual General Meeting elected Helena Walldén M.Sc. (Tech.) as the Chairman
of the Board of Directors for 2014 and Juha Majanen (Budget Counsellor,
Ministry of Finance) as Deputy Chairman. Other members elected to the Board
were Managing Director Sirpa Ojala, and Directors Esko Torsti and Juhani Järvi.
The Board assembled on 6 June approved Fingrid's dividend policy. All decision
made at the Annual General meeting were reported on 6 June 2014 on the
company's website and on the London Stock Exchange.
The Annual General Meeting decided to pay a dividend of 6.7 million euros. The
extraordinary general meeting held on 18 June decided to pay an additional
dividend of 75.2 million euros. These dividends were paid in June 2014.
Events after review period and outlook for the remaining part of the year
Fingrid Group's profit for the financial year 2014 before taxes and without the
change in the fair value of derivatives is expected to increase from the
previous year. The uncertainty involved in reserve costs, 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.
Notes: Tables for the Interim Report 1 January - 30 June 2014
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 the Interim Report 1 January - 30 June 2014
Condensed 1-6/20 1-6/20 Change 4-6/20 4-6/20 Change 1.-12.2013
consolidated 14 13 % 14 13 %
statement of
comprehensive
income,
million euros
--------------------------------------------------------------------------------
Turnover 305.3 280.1 25.2 114.1 109.5 4.5 543.1
--------------------------------------------------------------------------------
Other operating 1.7 2.7 -1.0 0.5 1.8 -1.2 4.1
income
--------------------------------------------------------------------------------
Depreciation -45.6 -39.8 -5.8 -23.6 -20.5 -3.1 -81.7
--------------------------------------------------------------------------------
Operating expenses -162.4 -174.0 11.6 -71.4 -101.0 29.6 -350.2
--------------------------------------------------------------------------------
Operating profit 99.0 69.0 30.0 19.7 -10.2 29.8 115.3
--------------------------------------------------------------------------------
Finance income and -4.6 -16.7 12.1 -2.7 -10.1 7.4 -28.7
costs
--------------------------------------------------------------------------------
Portion of profit of 0.7 0.4 0.3 0.2 0.2 0.1 0.7
associated
companies
--------------------------------------------------------------------------------
Profit before taxes 95.0 52.7 42.4 17.2 -20.1 37.3 87.3
--------------------------------------------------------------------------------
Income taxes -18.9 -12.8 -6.1 -3.4 5.0 -8.3 3.4
--------------------------------------------------------------------------------
Profit for the 76.2 39.9 36.3 13.8 -15.2 29.0 90.7
financial period
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Other comprehensive
income
--------------------------------------------------------------------------------
Cash flow hedges 0.0 -3.6 3.6 0.0 0.8 -0.8 -4.0
--------------------------------------------------------------------------------
Translation reserve -0.4 -0.6 0.3 0.1 -0.2 0.3 -0.6
--------------------------------------------------------------------------------
Items related to 0.0 0.0 0.0 0.0 0.0 0.0 0.0
long-term asset
items available for
sale
--------------------------------------------------------------------------------
Total comprehensive 75.8 35.6 40.2 13.9 -14.6 28.5 86.1
income for the
financial period
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit attributable
to:
--------------------------------------------------------------------------------
Equity holders of 76.2 39.9 36.3 13.8 -15.2 29.0 90.7
the company
--------------------------------------------------------------------------------
Total comprehensive
income attributable
to:
--------------------------------------------------------------------------------
Equity holders of 75.8 35.6 40.2 13.9 -14.6 28.5 86.1
the company
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Earnings per share 22 906 11 990 10 915 4 161 -4 560 8 722 27 278
(euros) belonging
to the owners of
parent company,
calculated from
profit*
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
no dilution effect
Condensed consolidated balance sheet, 30.6.2014 30.6.2013 Change 31.12.2013
million euros %
--------------------------------------------------------------------------------
ASSETS
--------------------------------------------------------------------------------
Non-current assets
--------------------------------------------------------------------------------
Goodwill 87.9 87.9 0.0 87.9
--------------------------------------------------------------------------------
Intangible assets 92.8 91.4 1.4 92.8
--------------------------------------------------------------------------------
Property, plant and equipment 1 615.9 1 506.2 109.7 1 623.4
--------------------------------------------------------------------------------
Investments 11.0 8.4 2.6 10.7
--------------------------------------------------------------------------------
Derivatives 42.3 52.6 -10.3 42.3
--------------------------------------------------------------------------------
Receivables 13.0 18.2 -5.2 18.0
--------------------------------------------------------------------------------
Current assets
--------------------------------------------------------------------------------
Inventories 13.2 11.8 1.3 11.4
--------------------------------------------------------------------------------
Derivatives 4.9 1.8 3.1 2.1
--------------------------------------------------------------------------------
Receivables 51.1 61.6 -10.5 76.0
--------------------------------------------------------------------------------
Financial assets recognised in income 105.2 210.8 -105.6 195.0
statement at fair value
--------------------------------------------------------------------------------
Cash and cash equivalents 98.2 3.7 94.5 22.3
--------------------------------------------------------------------------------
Total assets 2 135.4 2 054.4 81.0 2 182.0
--------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY AND LIABILITIES
--------------------------------------------------------------------------------
Shareholders' equity belonging to the
owners of the parent company
--------------------------------------------------------------------------------
Shareholders' equity 636.6 592.3 44.3 642.7
--------------------------------------------------------------------------------
Non-current liabilities
--------------------------------------------------------------------------------
Current interest-bearing liabilities 1 011.9 1 017.5 -5.6 975.3
--------------------------------------------------------------------------------
Derivatives 44.9 38.4 6.5 38.8
--------------------------------------------------------------------------------
Other current liabilities 129.1 160.2 -31.1 121.5
--------------------------------------------------------------------------------
Current liabilities
--------------------------------------------------------------------------------
Current interest-bearing liabilities 247.8 174.3 73.5 318.7
--------------------------------------------------------------------------------
Derivatives 8.6 7.5 1.1 15.5
--------------------------------------------------------------------------------
Other current liabilities 56.5 64.2 -7.8 69.5
--------------------------------------------------------------------------------
Total shareholders' equity and 2 135.4 2 054.4 81.0 2 182.0
liabilities
--------------------------------------------------------------------------------
Consolidated statement of changes in total equity. EUR million
--------------------------------------------------------------------------------
-
Attributable to Share Share Fair Translati Retained Total
equity holders of capita premium value on earnings equity
the parent company l account reserves reserve
--------------------------------------------------------------------------------
1.1.2013 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
--------------------------------------------------------------------------------
Comprehensive income -3.6 -0.6 39.9 35.6
--------------------------------------------------------------------------------
Transactions with
owners
--------------------------------------------------------------------------------
Dividend relating to -13.1 -13.1
2012
--------------------------------------------------------------------------------
30.6.2013 55.9 55.9 -11.2 0.0 491.6 592.3
--------------------------------------------------------------------------------
Comprehensive income
--------------------------------------------------------------------------------
Profit or loss 50.8 50.8
--------------------------------------------------------------------------------
Other comprehensive
income
--------------------------------------------------------------------------------
Cash flow hedges -0.4 -0.4
--------------------------------------------------------------------------------
Translation reserve 0.0 0.0
--------------------------------------------------------------------------------
Items related to 0.0 0.0
long-term asset
items available for
sale
--------------------------------------------------------------------------------
Total other -0.4 0.0 -0.4
comprehensive income
adjusted by tax
effects
--------------------------------------------------------------------------------
Comprehensive income -0.4 0.0 50.8 50.4
--------------------------------------------------------------------------------
1.1.2014 55.9 55.9 -11.6 0.0 542.4 642.7
--------------------------------------------------------------------------------
Comprehensive income
--------------------------------------------------------------------------------
Profit or loss 76.2 76.2
--------------------------------------------------------------------------------
Other comprehensive
income
--------------------------------------------------------------------------------
Translation reserve -0.4 -0.4
--------------------------------------------------------------------------------
Items related to 0.0 0.0
long-term asset
items available for
sale
--------------------------------------------------------------------------------
Total other 0.0 -0.4 -0.4
comprehensive income
--------------------------------------------------------------------------------
Comprehensive income 0.0 -0.4 76.2 75.8
--------------------------------------------------------------------------------
Transactions with
owners
--------------------------------------------------------------------------------
Dividend relating to -81.9 -81.9
2013
--------------------------------------------------------------------------------
30.6.2014 55.9 55.9 -11.6 -0.4 536.7 636.6
--------------------------------------------------------------------------------
Condensed consolidated cash flow statement. Eur 1-6/201 1-6/201 1.-12.2013
million 4 3
--------------------------------------------------------------------------------
Cash flow from operating activities
--------------------------------------------------------------------------------
Profit for the financial period 76.2 39.9 90.7
--------------------------------------------------------------------------------
Adjustments 65.0 71.3 111.1
--------------------------------------------------------------------------------
Changes in working capital 16.9 12.2 -0.5
--------------------------------------------------------------------------------
Interest paid -12.0 -12.5 -21.6
--------------------------------------------------------------------------------
Interest received 0.8 0.8 1.2
--------------------------------------------------------------------------------
Taxes paid -7.9 -6.8 -22.1
--------------------------------------------------------------------------------
Net cash flow from operating activities 138.9 104.9 158.8
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash flow from investing activities
--------------------------------------------------------------------------------
Investments in property. plant and equipment -59.9 -67.5 --222.3
--------------------------------------------------------------------------------
Investments in intangible assets -1.6 -1.7 -4.7
--------------------------------------------------------------------------------
Investments in other assets 0.0 -2.0
--------------------------------------------------------------------------------
Proceeds from sale of property. plant and 0.2 4.0 4.0
equipment
--------------------------------------------------------------------------------
Dividend received 0.3 0.0 0.3
--------------------------------------------------------------------------------
Contributions received 19.9
--------------------------------------------------------------------------------
Interest paid -0.9 -0.8 -1.7
--------------------------------------------------------------------------------
Net cash flow from investing activities -41.8 -66.0 -226.4
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash flow from financing activities
--------------------------------------------------------------------------------
Withdrawal of loans 263.0 128.3 528.6
--------------------------------------------------------------------------------
Repayment of loans -292.1 -159.8 -444.5
--------------------------------------------------------------------------------
Dividends paid -81.9 -6.7 -13.1
--------------------------------------------------------------------------------
Net cash flow from financing activities -111.0 -38.2 71.0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net change in cash and cash equivalents -13.9 0.7 3.5
--------------------------------------------------------------------------------
Cash and cash equivalents at the beginning of the 217.3 213.8 213.8
financial period
--------------------------------------------------------------------------------
Cash and cash equivalents at the end of the 203.4 214.5 217.3
financial period
--------------------------------------------------------------------------------
QUARTERLY FIGURES
-----------------------------------------------------------------------------
Q2/2014 Q1/2014 Q4/2013 Q3/2013 Q2/2013 Q1/2013
-----------------------------------------------------------------------------
Turnover EUR M 114.1 191.3 155.1 107.8 109.5 170.6
-----------------------------------------------------------------------------
Operating profit EUR M 19.7 79.3 36.5 9.9 -10.2 79.1
-----------------------------------------------------------------------------
Operating profit % 17.2 41.5 23.5 9.2 -9.3 46.4
-----------------------------------------------------------------------------
INVESTMENTS . EUR MILLIONEUROS 1-6/2014 1-6/2013
--------------------------------------------------
Grid investments 53.5 56.5
--------------------------------------------------
Substations 30.1 34.7
--------------------------------------------------
Transmission lines 23.4 21.8
--------------------------------------------------
--------------------------------------------------
Gas turbine investments 0.4 1.9
--------------------------------------------------
Current gas turbine plants 0.0
--------------------------------------------------
New gas turbine plants 0.4 1.9
--------------------------------------------------
--------------------------------------------------
Other investments 3.6 5.1
--------------------------------------------------
ICT 3.6 4.0
--------------------------------------------------
Other 0.0 1.1
--------------------------------------------------
--------------------------------------------------
Total investments 57.5 63.6
--------------------------------------------------
RESEARCH AND DEVELOPMENT EXPENSES. MILLIONEUROS
-------------------------------------------------------------------
1-6/2014 1-6/2013
-------------------------------------------------------------------
Research and development expenses 0.9 0.9
-------------------------------------------------------------------
DERIVATIVE AGREEMENTS. EUR MILLIONEUROS
--------------------------------------------------------------------------------
-
30.6.2014
--------------------------------------------------------------------------------
Interest and currency derivatives Fair Fair Net Nominal
value value fair value
pos. neg. value
--------------------------------------------------------------------------------
Cross-currency swaps 34 -9 25 342
--------------------------------------------------------------------------------
Forward contracts 1 1 -79
--------------------------------------------------------------------------------
Interest rate swaps 20 -13 7 471
--------------------------------------------------------------------------------
Call options. bought 0 0 275
bought
--------------------------------------------------------------------------------
Total 55 -22 34 1 008
================================================================================
--------------------------------------------------------------------------------
Electricity derivatives Fair Fair Net Volume
value value fair TWh
pos. neg. value
--------------------------------------------------------------------------------
Electricity forward contracts. NASDAQ OMX
Commodities. designated as hedge
accounting*
--------------------------------------------------------------------------------
Electricity forward contracts. NASDAQ OMX 0 -35 -35 4.22
Commodities not designated as hedge
accounting*
--------------------------------------------------------------------------------
Total 0 -35 -35 4.22
================================================================================
*Fingrid has ceased hedge accounting for electricity derivates from the
beginning of 2014. The hedge fund in the balance sheet will be dismantled
during 2015 and 2016.
DERIVATIVE AGREEMENTS. EUR MILLIONEUROS
--------------------------------------------------------------------------------
-
30.6.2013 31.12.2013
--------------------------------------------------------------------------------
Interest 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 40 -9 31 366
swaps
--------------------------------------------------------------------------------
Forward 0 0 3 -1 -1 135
contracts
--------------------------------------------------------------------------------
Interest rate 10 -7 3 421 12 -8 4 471
swaps
--------------------------------------------------------------------------------
Call options. 0 0 665 350
bought
bought
--------------------------------------------------------------------------------
Total 62 -13 50 1 455 52 -18 34 1322
================================================================================
--------------------------------------------------------------------------------
Electricity Fair Fair Net Volume Fair Fair Net Volume
derivatives value value fair TWh value value fair TWh
pos. neg. value pos. neg. value
--------------------------------------------------------------------------------
Electricity -18 -18 2.16 -19 -19 1.76
forward
contracts.
NASDAQ OMX
Commodities.
designated as
hedge
accounting
--------------------------------------------------------------------------------
Electricity -18 -18 1.86 -20 -20 2.21
forward
contracts.
NASDAQ OMX
Commodities not
designated as
hedge
accounting
--------------------------------------------------------------------------------
Total 0 -36 -36 4.01 -38 -38 3.97
================================================================================
Fair value hierarchy. EUR million 30.6.2014
--------------------------------------------------------------------------------
Level 1 Level 2 Level 3
--------------------------------------------------------------------------------
Financial assets recognised at fair value
--------------------------------------------------------------------------------
Available-for-sale investments
--------------------------------------------------------------------------------
Interest and currency derivatives 55
--------------------------------------------------------------------------------
Financial assets recognised at fair value 20 85
--------------------------------------------------------------------------------
Financial assets recognised at fair value total 20 140
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Financial liabilities recognised at fair value
--------------------------------------------------------------------------------
Interest and currency derivatives -22
--------------------------------------------------------------------------------
Electricity forward contracts. NASDAX OMX Commodities -35
--------------------------------------------------------------------------------
Financial liabilities recognised at fair value total -35 -22
--------------------------------------------------------------------------------
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 observable market parameters
either directly or indirectly.
Level 3: inputs are not publicly quoted or observable market parameters.
Commitments and contingencies. EUR million 30.6.2014 30.6.2013 31.12.2013
-----------------------------------------------------------------------------
Pledges/ bank balances 1 0 5
-----------------------------------------------------------------------------
Rental liabilities 32 27 28
-----------------------------------------------------------------------------
Commitment fee of revolving credit facility 2 2 2
-----------------------------------------------------------------------------
Total 35 29 34
-----------------------------------------------------------------------------
Investment commitments 119 224 137
-----------------------------------------------------------------------------
Other financial liabilities 2 2 2
-----------------------------------------------------------------------------
Changes in property. plant and equipment. EUR 30.6.2014 30.6.2013 31.12.2013
million
--------------------------------------------------------------------------------
Carrying amount at beginning of period 1 623 1 485 1 485
--------------------------------------------------------------------------------
Increases 40 62 222
--------------------------------------------------------------------------------
Decreases -2 -2 -3
--------------------------------------------------------------------------------
Depreciation and amortisation expense -45 -38 -80
--------------------------------------------------------------------------------
Carrying amount at end of period 1 616 1 506 1 623
--------------------------------------------------------------------------------
Transactions with associated companies. EUR 30.6.2014 30.6.2013 31.12.2013
million
--------------------------------------------------------------------------------
Sales 5 3 8
--------------------------------------------------------------------------------
Purchases 21 20 43
--------------------------------------------------------------------------------
Receivables 2 1 3
--------------------------------------------------------------------------------
Liabilities 0 0 0
--------------------------------------------------------------------------------
Transactions with owners 30.6.2014 30.6.2013 31.12.2013
million euros
----------------------------------------------------------
Owners
----------------------------------------------------------
Purchases 6 5 24
----------------------------------------------------------
Liabilities 0 1
----------------------------------------------------------
Other related parties
----------------------------------------------------------
Sales 56 48 83
----------------------------------------------------------
Purchases 29 19 50
----------------------------------------------------------
Receivables 5 4 9
----------------------------------------------------------
Liabilities 5 3 5
----------------------------------------------------------
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 2013.
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 review period.
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
management's present views. 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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