Fingrid oyj
www.fingrid.fi
Stock exchange release 23.10.2009, 08.00 GMT
Fingrid GROUP'S INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2009
Review of operations
Fingrid achieved excellent results in a benchmarking survey carried out by the
Council of European Energy Regulators (CEER), measuring the overall efficiency
of electricity transmission system operation. The benchmarking involved 22
European transmission system operators (TSOs) from 19 countries, and its results
were published in early September. Fingrid Oyj and two other TSOs were found to
be exceptionally efficient.
The working group appointed by the Finnish Ministry of Employment and the
Economy, studying the feed-in tariff for renewable energy, completed its final
report at the end of September. The working group suggests that Fingrid or its
fully-owned subsidiary would co-ordinate the feed-in tariff system. At the
moment, Fingrid manages similar arrangements such as the feed-in tariff for peat
and the power reserve system.
Power system operation
From July to September 2009, electricity consumption in Finland totalled 17.1
terawatt hours (19.4 TWh during the corresponding period in 2008). A total of
13.9 TWh of electricity was transmitted in Fingrid's grid during the same
period, representing 81 per cent of the electricity consumption in Finland.
Electricity consumption in Finland from January to September was 58.0 TWh (64.8
TWh), which was 10.5 per cent less than in 2008.
Between July and September, 1.2 TWh of electricity (0.5 TWh) was imported from
Sweden to Finland, and 0.4 TWh (1.3 TWh) was exported from Finland to Sweden.
From January to September, 2.2 TWh (3.5 TWh) of electricity was imported from
Sweden to Finland, and 2.8 TWh (2.2 TWh) was exported from Finland to Sweden.
The volume of electricity imported from Estonia from July to September was 0.2
TWh (0.6 TWh), and 1.1 TWh (1.6 TWh) was imported from Estonia to Finland from
January to September.
Electricity imports from Russia to Finland between July and September were 2.5
TWh (2.8 TWh), and between January and September 8.6 TWh (7.8 TWh).
A thunderstorm on 10 August caused a cross-border line disturbance between
Finland and Sweden, as a result of which the Finnish power system segregated
from the other Nordic countries into a frequency area of its own. The
disturbance did not cause significant supply interruptions or disconnection of
power plants. The previous time that the Finnish power system separated from the
other Nordic countries was on 27 December 1983 as a result of a major
disturbance originating from Hamra in Sweden.
An extensive power failure concerning some 60,000 people occurred in Northern
Finland on 15 September. The failure originated from a failed protective relay
at the Petäjäskoski substation, which is undergoing a major renovation project
and was therefore subject to an exceptional switching situation.
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| Power system operation | 1-9/09 | 1-9/08 | 7-9/09 | 7-9/08 |
--------------------------------------------------------------------------------
| Electricity consumption in | 58.0 | 64.8 | 17.1 | 19.4 |
| Finland TWh | | | | |
--------------------------------------------------------------------------------
| Fingrid's transmission volume | 45.6 | 48.1 | 13.9 | 15.5 |
| TWh | | | | |
--------------------------------------------------------------------------------
| Fingrid's loss energy volume | 0.7 | 0.7 | 0.2 | 0.2 |
| TWh | | | | |
--------------------------------------------------------------------------------
| Electricity transmissions | | | | |
| Finland-Sweden | | | | |
--------------------------------------------------------------------------------
| exports to Sweden TWh | 2.8 | 2.2 | 0.4 | 1.3 |
--------------------------------------------------------------------------------
| imports from Sweden TWh | 2.2 | 3.5 | 1.2 | 0.5 |
--------------------------------------------------------------------------------
| Electricity transmissions | | | | |
| Finland-Estonia | | | | |
--------------------------------------------------------------------------------
| exports to Estonia TWh | 0.1 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| imports from Estonia TWh | 1.1 | 1.6 | 0.2 | 0.6 |
--------------------------------------------------------------------------------
| Electricity transmissions | | | | |
| Finland-Russia | | | | |
--------------------------------------------------------------------------------
| imports from Russia TWh | 8.6 | 7.8 | 2.5 | 2.8 |
--------------------------------------------------------------------------------
Promotion of electricity market
The average price (system price) in Nord Pool's spot market during the third
quarter in 2009 was 31.28 €/MWh (55.51 €/MWh during the corresponding period in
2008), and the area price for Finland was 35.56 €/MWh (65.90 €/MWh). From
January to September, Nord Pool's spot market price averaged 34.51 €/MWh (42.74
€/MWh) and the area price for Finland 35.99 €/MWh (50.56 €/MWh).
Transmission congestions between Finland and Sweden restricted trading for 5.14
per cent of the hours in the early part of the year. The congestion income
caused by transmission congestions on the border between Finland and Sweden
totalled 0.38 million euros from July to September. The Nordic congestion income
during the same period was 36.17 million euros (81.19 million euros). Fingrid's
portion of this Nordic congestion income was 2.4 million euros (7.7 million
euros). Between January and September, the congestion income resulting from
transmission congestions on the border between Finland and Sweden was 0.92
million euros (0.22 million euros). The Nordic congestion income between January
and September was 54.36 million euros (222.12 million euros). Fingrid's portion
of this congestion income in the early part of the year was 3.7 million euros
(21.2 million euros).
Fingrid's counter trade costs from January to September were approx. 0.6 million
euros (0 million euros during the corresponding period in 2008).
The Commission of the European Union reprimanded all the EU member states for
neglect concerning electricity market regulations. For Finland, the relevant
issues mainly concerned efforts by authorities and to some extent also Fingrid.
The Finnish Government contested the neglect in its response. The complaints
made by the Commission were irrelevant in many respects, and potential earlier
shortcomings have already been corrected.
On 9 September, the Finnish Competition Authority made a decision as a result of
a request for action made by RAO Nordic. RAO Nordic claimed that Fingrid had
misused its dominating market position on the market for cross-border
transmission of electricity. The Competition Authority considered that there is
no reason to take further action in the matter, and the Competition Authority
removed the matter from processing.
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| Electricity market | 1-9/09 | 1-9/08 | 7-9/09 | 7-9/08 |
--------------------------------------------------------------------------------
| NordPool system price, average | 34.51 | 42.74 | 31.28 | 55.51 |
| €/MWh | | | | |
--------------------------------------------------------------------------------
| Area price Finland, average | 35.99 | 50.56 | 35.56 | 65.90 |
| €/MWh | | | | |
--------------------------------------------------------------------------------
| Congestion income in the Nordic | 54.4 | 222.1 | 36.2 | 81.2 |
| countries million € | | | | |
--------------------------------------------------------------------------------
| Congestion income between | 0.9 | 0.2 | 0.4 | 0.1 |
| Finland and Sweden million € | | | | |
--------------------------------------------------------------------------------
| Congestion hours between Finland | 5.1 | 0.7 | 3.7 | 1.3 |
| and Sweden % | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Fingrid's share of the | 3.7 | 21.2 | 2.4 | 7.7 |
| congestion income in the Nordic | | | | |
| countries million € | | | | |
--------------------------------------------------------------------------------
Capital expenditure and grid maintenance
The Group's gross capital expenditure from July to September was 34.8 million
euros (20 million euros during the corresponding period in 2008). Gross capital
expenditure between January and September totalled 88.1 million euros (55
million euros).
In 2009, Fingrid is making significant capital investments in the grid in
Finland and in cross-border connections. Several new and renovated connections
will be commissioned in the autumn. One project completed in the summer of 2009
was the 400/110/20 kilovolt transformer substation at Pikkarala, contracted by
Siemens Osakeyhtiö.
Fingrid is gradually shifting from the 220 kilovolt voltage level to 400
kilovolts in Ostrobothnia in Western Finland. In the first stage, the contractor
for the Seinäjoki-Tuovila transmission line is the German company SAG, and the
contractor for the Tuovila substation is Infratek Oy. Fingrid has also signed a
contract with Eltel Networks on renewing the 2x110 kilovolt transmission line
between Lieto and Koroinen.
Major renovation and maintenance management projects on the existing grid have
also been launched in the autumn. Fingrid and Svenska Kraftnät have ordered from
ABB the renewal of the control and protection system of the Fenno-Skan 1
submarine cable link between Finland and Sweden originally commissioned in 1989.
Basic renovations of the 220 kilovolt lines Leväsuo-Kalajoki and
Kalajoki-Ventusneva as well as repair work for guy corrosion for 2009-2010 have
been ordered from Empower Oy.
The opening of the electricity market in Estonia, required by the EstLink 2
project, has made progress. The Estonian Government has made a decision to open
the Estonian wholesale market for electricity, and the Estonian Parliament will
handle the proposal later in the autumn. The rules for the present connection
EstLink1 are being changed so that the Nordic electricity exchange could begin
work in Estonia in April 2010.
Financial result
The Group's revenue from July to September was 71 million euros (87 million
euros). The sales of balance power were 18 million euros (28 million euros) and
purchases of balance power 18 million euros (22 million euros). The IFRS loss
before taxes was -6 million euros (9 million euros).
The Group's revenue was 255 million euros (280 million euros) from January to
September. The grid tariff and Russian transmission tariff were raised by 4.5
per cent at the beginning of 2009. The other operating income was 1.5 million
euros (1.6 million euros). As a result of decreasing electricity consumption,
grid revenue decreased despite the 4.5 per cent tariff increase carried out at
the beginning of the year.
Revenue from the sales of balance power decreased on the previous year to 66
million euros (76 million euros). The purchases of balance power, 61 million
euros, were also below those in 2008 (68 million euros). These changes in
purchases were mainly due to the fact that the consumption and production
balances are now handled in two different balances. The Nordic congestion
income, 4 million euros, decreased significantly from the previous year (21
million euros). Cross-border transmission income and peak load power income
increased slightly from the corresponding period in 2008. Net proceeds from the
ITC or inter-TSO compensations between the European TSOs grew to 10 million
euros. Income and costs related to the feed-in tariff of peat increased
somewhat. Depreciation costs, maintenance management costs, reserve power costs
and personnel costs rose, while loss energy costs decreased slightly. The
changes between January and September as well as July and September 2009 from
the corresponding periods in 2008 are shown in the table below.
--------------------------------------------------------------------------------
| Revenue | 1-9/09 | 1-9/08 | 7-9/09 | 7-9/08 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Grid service revenue | 130.7 | 135.6 | 32.2 | 33.7 |
--------------------------------------------------------------------------------
| Sales of balance power | 66.4 | 76.3 | 18.3 | 27.9 |
--------------------------------------------------------------------------------
| Cross-border | 18.0 | 16.4 | 5.4 | 5.8 |
| transmission | | | | |
--------------------------------------------------------------------------------
| ITC income | 21.9 | 16.3 | 7.8 | 6.7 |
--------------------------------------------------------------------------------
| Peak load power | 9.4 | 7.8 | 3.0 | 2.5 |
--------------------------------------------------------------------------------
| Feed-in tariff for peat | 0.3 | 0.2 | 0.1 | 0.1 |
--------------------------------------------------------------------------------
| Congestion income | 3.7 | 21.2 | 2.4 | 7.7 |
--------------------------------------------------------------------------------
| Other revenue | 4.2 | 6,5 | 1.6 | 2.7 |
--------------------------------------------------------------------------------
| Other operating income | 1.5 | 1.6 | 0.5 | 0.6 |
--------------------------------------------------------------------------------
| Revenue and other income | 255.9 | 281.9 | 71.3 | 87.7 |
| total | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Costs | 1-9/09 | 1-9/08 | 7-9/09 | 7-9/08 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Depreciation | 48.2 | 44.5 | 15.9 | 14.9 |
--------------------------------------------------------------------------------
| Purchase of balance | 60.8 | 67.6 | 17.5 | 21.6 |
| power | | | | |
--------------------------------------------------------------------------------
| ITC charges | 11.9 | 11.0 | 3.4 | 4.1 |
--------------------------------------------------------------------------------
| Peak load power | 9.9 | 7.2 | 3.1 | 2.0 |
--------------------------------------------------------------------------------
| Feed-in tariff for peat | 0.2 | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Purchase of loss energy | 36.7 | 37.5 | 11.4 | 11.0 |
--------------------------------------------------------------------------------
| Reserves | 15.7 | 14.2 | 5.9 | 4.9 |
--------------------------------------------------------------------------------
| Maintenance management | 12.3 | 9.0 | 4.7 | 3.3 |
--------------------------------------------------------------------------------
| Personnel | 14.1 | 13.7 | 3.9 | 3.9 |
--------------------------------------------------------------------------------
| Other costs | 13.6 | 13.6 | 4.3 | 5.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Costs total | 223.4 | 218.5 | 70.0 | 71.1 |
--------------------------------------------------------------------------------
From January to September, operating profit excluding the change in the fair
value of electricity derivatives was 33 million euros (63 million euros).
Operating profit decreased primarily because of reduced grid service revenue,
and smaller congestion income resulting from transmission congestions. The IFRS
operating profit was 35 million euros (61 million euros), which contains 2
million euros (-2 million euros) of positive change in the fair value of
electricity derivatives. The IFRS profit before taxes was 20 million euros (37
million euros), and the total comprehensive income for the review period was 11
million euros (38 million euros). The equity ratio was 26.4 (29.3) per cent at
the end of the review period.
The Group's income flow is characterised by seasonal fluctuations, which is why
the financial result for the entire year cannot be directly estimated on the
basis of the nine-month result.
Financing
The financial position of the Group continued to be satisfactory. The net
financial costs of the Group from July to September were -6 million euros (-7
million euros). The net financial costs of the Group also decreased between
January and September to -15 million euros (-25 million euros). Financial assets
recognised at fair value in the income statement, and cash and cash equivalents
amounted to 204 million euros (213 million euros) at 30 September 2009. The
interest-bearing liabilities, including derivative liabilities, totalled 977
million euros (939 million euros), of which 627 million euros (686 million
euros) were long-term and 350 million euros (254 million euros) were short-term.
The counterparty risk involved in the derivative contracts relating to financing
was 19 million euros. The company has an undrawn revolving credit facility of
250 million euros.
Personnel
The total personnel of the Fingrid Group averaged 250 (240) during the review
period.
Auditing
The consolidated figures in this Interim Report are unaudited.
Events after the review period and outlook for the remaining part of the year
On 9 October 2009, Moody's Investors Service downgraded Fingrid's long-term
rating to A1 from Aa3. The short-term rating remained at P-1. The outlook
changed from stable to negative.
The profit of the Fingrid Group for the entire year without the change in the
fair value of derivatives is expected to decrease somewhat on the previous year.
Board of Directors
Appendices: Tables for the interim report 1 January - 30 June 2009
Further information:
Jukka Ruusunen, President & CEO, tel. +358 (0)30 395 5140
or +358 (0)40 593 8428
Tom Pippingsköld, CFO, tel. +358 (0)30 395 5157 or
+358(0)40 519 5041
Appendices: Tables for the Interim Report 1 January - 30 September 2009
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| Condensed | 2009 | 2008 | Change | 2009 | 2008 | Change | 2008 |
| consolidated | Jan-S | Jan-S | | Jul-Se | Jul-Se | | Jan-De |
| statement of | ep | ep | | p | p | | c |
| comprehensive | | | | | | | |
| income, million | | | | | | | |
| euros | | | | | | | |
--------------------------------------------------------------------------------
| Revenue | 254.5 | 280.3 | -25.8 | 70.8 | 87.1 | -16.3 | 382.3 |
--------------------------------------------------------------------------------
| Other operating | 1.4 | 1.6 | -0.2 | 0.5 | 0.6 | -0.1 | 2.5 |
| income | | | | | | | |
--------------------------------------------------------------------------------
| Depreciation | -48.2 | -44.5 | -3.7 | -15.9 | -14.9 | -1.0 | -59.5 |
| and | | | | | | | |
| amortisation | | | | | | | |
| expense | | | | | | | |
--------------------------------------------------------------------------------
| Operating | -173. | -176. | 2.8 | -55.3 | -57.3 | 1.9 | -257.0 |
| expenses | 2 | 0 | | | | | |
--------------------------------------------------------------------------------
| Operating | 34.5 | 61.4 | -26.9 | 0.1 | 15.5 | -15.4 | 68.4 |
| profit | | | | | | | |
--------------------------------------------------------------------------------
| Finance income | -14.5 | -24.7 | 10.2 | -5.8 | -6.9 | 1.1 | -31.4 |
| and costs | | | | | | | |
--------------------------------------------------------------------------------
| Portion of | 0.2 | 0.6 | -0.3 | 0.0 | 0.8 | -0.8 | 0.5 |
| profit of | | | | | | | |
| associated | | | | | | | |
| companies | | | | | | | |
--------------------------------------------------------------------------------
| Profit before | 20.2 | 37.3 | -17.0 | -5.7 | 9.4 | -15.1 | 37.5 |
| taxes | | | | | | | |
--------------------------------------------------------------------------------
| Income taxes | -5.2 | -9.6 | 4.4 | 1.5 | -2.3 | 3.8 | -9.7 |
--------------------------------------------------------------------------------
| Profit for the | 15.0 | 27.7 | -12.7 | -4.2 | 7.2 | -11.3 | 27.9 |
| period | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other | | | | | | | |
| comprehensive | | | | | | | |
| income | | | | | | | |
--------------------------------------------------------------------------------
| Cash flow | -4.3 | 10.7 | -15.1 | -7.5 | -26.0 | 18.4 | -32.5 |
| hedges | | | | | | | |
--------------------------------------------------------------------------------
| Translation | 0.4 | -0.1 | 0.5 | 0.2 | -0.1 | 0.3 | -0.6 |
| reserve | | | | | | | |
--------------------------------------------------------------------------------
| Available-for-s | | | | | | | 0.0 |
| ale financial | | | | | | | |
| assets | | | | | | | |
--------------------------------------------------------------------------------
| Total | 11.1 | 38.3 | -27.2 | -11.5 | -18.9 | 7.4 | -5.3 |
| comprehensive | | | | | | | |
| income for the | | | | | | | |
| year | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit | | | | | | | |
| attributable | | | | | | | |
| to: | | | | | | | |
--------------------------------------------------------------------------------
| Equity holders | 15.0 | 27.7 | -12.7 | -4.2 | 7.2 | -11.3 | 27.9 |
| of the company | | | | | | | |
--------------------------------------------------------------------------------
| Total | | | | | | | |
| comprehensive | | | | | | | |
| income | | | | | | | |
| attributable | | | | | | | |
| to: | | | | | | | |
--------------------------------------------------------------------------------
| Equity holders | 11.1 | 38.3 | -27.2 | -11.5 | -18.9 | 7.4 | -5.3 |
| of the company | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per | 4,517 | 8,330 | -3,813 | -1,257 | 2,156 | -3,413 | 8,379 |
| share (euros)* | | | | | | | |
| belonging to | | | | | | | |
| the owners of | | | | | | | |
| the parent | | | | | | | |
| company, | | | | | | | |
| calculated from | | | | | | | |
| profit | | | | | | | |
--------------------------------------------------------------------------------
| * no dilution | | | | | | | |
| effect | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Condensed consolidated balance | 2009 | 2008 | Change | 2008 |
| sheet, million euros | 30 Sep | 30 Sep | | 31 Dec |
--------------------------------------------------------------------------------
| ASSETS | | | | |
--------------------------------------------------------------------------------
| Non-current assets | | | | |
--------------------------------------------------------------------------------
| Goodwill | 87.9 | 87.9 | 0.0 | 87.9 |
--------------------------------------------------------------------------------
| Intangible assets | 85.9 | 84.6 | 1.3 | 85.3 |
--------------------------------------------------------------------------------
| Property, plant and equipment | 1,152.5 | 1,096.2 | 56.4 | 1,113.1 |
--------------------------------------------------------------------------------
| Investments | 7.3 | 7.2 | 0.1 | 6.7 |
--------------------------------------------------------------------------------
| Receivables | 21.9 | 43.5 | -21.6 | 9.9 |
--------------------------------------------------------------------------------
| Current assets | | | | |
--------------------------------------------------------------------------------
| Inventories | 5.6 | 4.7 | 0.9 | 4.6 |
--------------------------------------------------------------------------------
| Receivables | 31.4 | 35.1 | -3.7 | 48.0 |
--------------------------------------------------------------------------------
| Financial assets recognised in | 199.5 | 212.3 | -12.8 | 200.0 |
| income statement at fair value | | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 4.8 | 0.8 | 4.0 | 6.1 |
--------------------------------------------------------------------------------
| Total assets | 1,596.9 | 1,572.2 | 24.6 | 1,561.6 |
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY AND | | | | |
| LIABILITIES | | | | |
--------------------------------------------------------------------------------
| Shareholders' equity belonging to | | | | |
| the owners of the parent company | | | | |
--------------------------------------------------------------------------------
| Shareholders' equity | 422.0 | 461.2 | -39.2 | 417.6 |
--------------------------------------------------------------------------------
| Non-current liabilities | | | | |
--------------------------------------------------------------------------------
| Non-current interest-bearing | 627.4 | 685.9 | -58.5 | 678.3 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Other non-current liabilities | 158.0 | 122.3 | 35.7 | 150.1 |
--------------------------------------------------------------------------------
| Current liabilities | | | | |
--------------------------------------------------------------------------------
| Current interest-bearing | 349.9 | 253.6 | 96.4 | 254.5 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Trade and other payables | 39.6 | 49.3 | -9.7 | 61.0 |
--------------------------------------------------------------------------------
| Total shareholders' equity and | 1,596.9 | 1,572.2 | 24.6 | 1,561.6 |
| liabilities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Key indicators, million euros | 2009 | 2008 | 2008 |
| | Jan-Sep | Jan-Sep | Jan-Dec |
--------------------------------------------------------------------------------
| Revenue | 254.5 | 280.3 | 382.3 |
--------------------------------------------------------------------------------
| Capital expenditure, gross | 88.1 | 55.1 | 87.9 |
--------------------------------------------------------------------------------
| - % of revenue | 34.6 | 19.7 | 23.0 |
--------------------------------------------------------------------------------
| Research and development expenses | 0.8 | 0.6 | 0.9 |
--------------------------------------------------------------------------------
| - % of revenue | 0.3 | 0.2 | 0.2 |
--------------------------------------------------------------------------------
| Personnel, average | 250 | 240 | 241 |
--------------------------------------------------------------------------------
| Operating profit | 34.5 | 61.4 | 68.4 |
--------------------------------------------------------------------------------
| - % of revenue | 13.6 | 21.9 | 17.9 |
--------------------------------------------------------------------------------
| Profit before taxes | 20.2 | 37.3 | 37.5 |
--------------------------------------------------------------------------------
| - % of revenue | 7.9 | 13.3 | 9.8 |
--------------------------------------------------------------------------------
| Interest bearing liabilities, net* | 773.0 | 726.4 | 726.7 |
--------------------------------------------------------------------------------
| Equity ratio,%* | 26.4 | 29.3 | 26.7 |
--------------------------------------------------------------------------------
| Shareholders' equity* | 422.0 | 461.2 | 417.6 |
--------------------------------------------------------------------------------
| Equity per share, euros* | 126,910 | 138,697 | 125,600 |
--------------------------------------------------------------------------------
| Earnings per share, euros* | 4,517 | 8,330 | 8,379 |
--------------------------------------------------------------------------------
| * end of period | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Consolidated | Share | Share | Reva-lu | Trans-la | Retained | Total |
| statement of | capita | premiu | ation | tion | earnings | |
| changes in total | l | m | reserve | reserve | | |
| equity, million | | accoun | | | | |
| euros | | t | | | | |
--------------------------------------------------------------------------------
| Capital and | 55.9 | 55.9 | 9.4 | 0.2 | 308.6 | 430.0 |
| reserves 1 Jan | | | | | | |
| 2008 | | | | | | |
--------------------------------------------------------------------------------
| Dividend | | | | | -7.2 | -7.2 |
| distribution | | | | | | |
--------------------------------------------------------------------------------
| Total | | | 10.7 | -0.1 | 27.7 | 38.3 |
| comprehensive | | | | | | |
| income for the | | | | | | |
| year | | | | | | |
--------------------------------------------------------------------------------
| Capital and | 55.9 | 55.9 | 20.1 | 0.1 | 329.1 | 461.2 |
| reserves 30 Sep | | | | | | |
| 2008 | | | | | | |
--------------------------------------------------------------------------------
| Total | | | -43.3 | -0.4 | 0.2 | -43.5 |
| comprehensive | | | | | | |
| income for the | | | | | | |
| year | | | | | | |
--------------------------------------------------------------------------------
| Capital and | 55.9 | 55.9 | -23.2 | -0.4 | 329.3 | 417.6 |
| reserves 31 Dec | | | | | | |
| 2008 | | | | | | |
--------------------------------------------------------------------------------
| Dividend | | | | | -6.7 | -6.7 |
| distribution | | | | | | |
--------------------------------------------------------------------------------
| Total | | | -4.3 | 0.4 | 15.0 | 11.1 |
| comprehensive | | | | | | |
| income for the | | | | | | |
| year | | | | | | |
--------------------------------------------------------------------------------
| Capital and | 55.9 | 55.9 | -27.5 | 0.0 | 337.6 | 422.0 |
| reserves 30 Sep | | | | | | |
| 2009 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Condensed consolidated cash flow statement, | 2009 | 2008 | 2008 |
| million euros | Jan-Sep | Jan-Sep | Jan-Dec |
--------------------------------------------------------------------------------
| Cash flow from operating activities | | | |
--------------------------------------------------------------------------------
| Profit for the financial year | 15.0 | 27.7 | 27.9 |
--------------------------------------------------------------------------------
| Adjustments | 65.7 | 80.2 | 114.2 |
--------------------------------------------------------------------------------
| Changes in working capital | 4.3 | 8.3 | 4.8 |
--------------------------------------------------------------------------------
| Interests paid | -38.6 | -29.6 | -40.8 |
--------------------------------------------------------------------------------
| Interests received | 6.7 | 6.5 | 9.0 |
--------------------------------------------------------------------------------
| Taxes paid | -1.4 | -1.8 | -2.3 |
--------------------------------------------------------------------------------
| Net cash flow from operating activities | 51.7 | 91.3 | 112.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from investing activities | | | |
--------------------------------------------------------------------------------
| Purchase of property, plant and equipment | -86.4 | -54.7 | -83.6 |
--------------------------------------------------------------------------------
| Purchase of intangible assets | -3.9 | -1.7 | -3.1 |
--------------------------------------------------------------------------------
| Purchase of other assets | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Proceeds from other investments | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Proceeds from sale of property, plant and | 0.0 | 0.0 | 0.2 |
| equipment | | | |
--------------------------------------------------------------------------------
| Repayment of loans receivable | 0.0 | 0.1 | 0.1 |
--------------------------------------------------------------------------------
| Dividends received | 0.0 | 0.6 | 0.6 |
--------------------------------------------------------------------------------
| Net cash flow from investing activities | -90.3 | -55.7 | -85.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from financing activities | | | |
--------------------------------------------------------------------------------
| Withdrawal of loans | 248.8 | 193.6 | 354.4 |
--------------------------------------------------------------------------------
| Repayment of loans | -202.3 | -221.6 | -382.0 |
--------------------------------------------------------------------------------
| Dividends paid | -6.7 | -7.2 | -7.2 |
--------------------------------------------------------------------------------
| Net cash flow from financing activities | 39.8 | -35.1 | -34.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net change in cash and cash equivalents | 1.2 | 0.5 | -7.9 |
--------------------------------------------------------------------------------
| Cash and cash equivalents 1 Jan | 206.1 | 212.0 | 212.0 |
--------------------------------------------------------------------------------
| Impact of changes in fair value of | -3.1 | 0.6 | 2.1 |
| investments | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents 30 Sep | 204.3 | 213.1 | 206.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Derivative | 30 Sep 2009 | 30 Sep 2008 | 31 Dec 2008 |
| agreements, million | | | |
| euros | | | |
--------------------------------------------------------------------------------
| | Net | Notiona | Net | Notiona | Net | Notional |
| | fair | l value | fair | l value | fair | value |
| | value | | value | | value | |
--------------------------------------------------------------------------------
| Interest and | | | | | | |
| currency | | | | | | |
| derivatives | | | | | | |
--------------------------------------------------------------------------------
| Cross-currency | -2 | 332 | -31 | 365 | -22 | 367 |
| swaps | | | | | | |
--------------------------------------------------------------------------------
| Forward contracts | 0 | 12 | 1 | 17 | 1 | 19 |
--------------------------------------------------------------------------------
| Interest rate swaps | 1 | 155 | 0 | 144 | 0 | 134 |
--------------------------------------------------------------------------------
| Call options, | 11 | 780 | 9 | 330 | 2 | 330 |
| bought | | | | | | |
--------------------------------------------------------------------------------
| Total | 11 | 1 279 | -21 | 857 | -19 | 851 |
--------------------------------------------------------------------------------
| | 30 Sep 2009 | 30 Sep 2008 | 31 Dec 2008 |
--------------------------------------------------------------------------------
| | Net | Volume | Net | Volume | Net | Volume |
| | fair | TWh | fair | TWh | fair | TWh |
| | value | | value | | value | |
--------------------------------------------------------------------------------
| Electricity | | | | | | |
| derivatives | | | | | | |
--------------------------------------------------------------------------------
| Electricity forward | -39 | 3.64 | 34 | 3.56 | -35 | 3.52 |
| contracts, Nord | | | | | | |
| Pool Clearing | | | | | | |
| designated as hedge | | | | | | |
| accounting | | | | | | |
--------------------------------------------------------------------------------
| Electricity forward | 0 | -0.01 | 0 | 0.00 | 0 | 0 |
| contracts, Nord | | | | | | |
| Pool Clearing | | | | | | |
--------------------------------------------------------------------------------
| Forward contracts | -1 | 0.04 | 1 | 0.07 | 0 | 0.07 |
| of electricity, | | | | | | |
| others | | | | | | |
--------------------------------------------------------------------------------
| Total | -40 | 3.67 | 35 | 3.63 | -35 | 3.59 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Commitments and | 30 Sep 2009 | 30 Sep 2008 | 31 Dec 2008 |
| contingencies, million | | | |
| euros | | | |
--------------------------------------------------------------------------------
| Pledges/ bank balances | 4 | 0 | 6 |
--------------------------------------------------------------------------------
| Rental liabilities | 8 | 8 | 9 |
--------------------------------------------------------------------------------
| Commitment fee of | 0 | 0 | 1 |
| revolving credit | | | |
| facility | | | |
--------------------------------------------------------------------------------
| Total | 12 | 9 | 16 |
--------------------------------------------------------------------------------
| Capital commitments | 224 | 234 | 219 |
--------------------------------------------------------------------------------
| Other financial | 2 | 2 | 2 |
| liabilities | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Changes in property, | 30 Sep 2009 | 30 Sep 2008 | 31 Dec 2008 |
| plant and equipment, | | | |
| million euros | | | |
--------------------------------------------------------------------------------
| Carrying amount at | 1,113 | 1,086 | 1,086 |
| beginning of period | | | |
--------------------------------------------------------------------------------
| Increases | 85 | 54 | 81 |
--------------------------------------------------------------------------------
| Decreases | 0 | | 0 |
--------------------------------------------------------------------------------
| Depreciation and | -45 | -43 | -54 |
| amortisation expense | | | |
--------------------------------------------------------------------------------
| Carrying amount at end | 1,153 | 1,096 | 1,113 |
| of period | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Related party | 30 Sep 2009 | 30 Sep 2008 | 31 Dec 2008 |
| transactions and | | | |
| balances, million euros | | | |
--------------------------------------------------------------------------------
| Sales | 65 | 71 | 99 |
--------------------------------------------------------------------------------
| Purchases | 71 | 75 | 109 |
--------------------------------------------------------------------------------
| Receivables | 4 | 7 | 9 |
--------------------------------------------------------------------------------
| Liabilities | 0 | 2 | 1 |
--------------------------------------------------------------------------------
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 2008.
The Group has adopted the new standards that came into force 1 January 2009 IAS
1. Presentation of Financial Statements and IAS 23 Borrowing Costs.
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.
