Financial Statements 2020 REVIEW by the CEO 2020
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Financial Statements 2020 REVIEW BY THE CEO 2020 2020 TESTED OUR OPERATIONAL CAPABILITY 2 KEMIJOKI OY // REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2020 he coronavirus pandemic turned our the future. The Finnish Environment Institute simu- refurbish Kokkosniva and prepare for the modern- The downstream migration solution is part of a larger everyday lives upside down, and Lap- lated the flood of the Kemijoki waterways excluding isation of Kurkiaska. At Kymijoki, we are continuing group of actions aimed at restoring migratory and en- land faced the biggest spring floods in the Lokka and Porttipahta reservoirs and Kemijärvi’s the refurbishment of the Inkeroinen power plant to dangered stock of landlocked salmon and trout with decades. We were able to maintain our regulation. We can only imagine what would have improve the 100-year-old dam’s safety. activities that support natural breeding. The device Toperational capability under rapidly changing happened if the water levels in Rovaniemi, based on will be implemented in the beginning of 2021. conditions and produced close to 4,800 GWh of the simulation, had risen 80–90 centimetres higher Mitigating environmental impacts electricity at our hydropower plants in Kemijoki, than they actually did. All forms of energy production have some environ- Hydropower experts and knowhow Lieksanjoki and Kymijoki. mental impacts. Recognising and decreasing these We ensured the continuity of our hydropower kno- Responsible climate actions impacts is an essential part of our operations. Our whow by renewing partner contracts. We chose Security of supply Curbing climate change is one of our key goals. As the environmental management system (ISO 14001) was Caverion Industria Oy as our operating and mainte- We have systematically improved our capability to most significant producer of hydropower in Finland, re-certified in 2020. nance partner for the Kemijoki and Lieksanjoki pow- face different types of disturbances and to recover we carefully analyse the concrete risks climate change Curbing climate change is one of the most effec- er plants. As to environmental and obligatory work, from them. We regularly practise for disturbances might have on hydropower production. We have com- tive ways to stop the depletion of biodiversity. In this we continue our long-term cooperation with Mitta and based on our learnings, we develop our capa- piled our goals and actions into a climate policy, that equation, climate-friendly hydropower is part of the Oy. In our choices, we emphasised competence bilities further to prepare for the future. We are all abides by the EU’s guidelines on reporting climate-re- solution. But we are doing much more to preserve development and securing of continuity, specialised currently living in a “new normal”. Thanks to our lated information and principles suggested by the Task biodiversity. In the village of Mutenia, partly covered expertise in hydropower as well as the commitment special arrangements, our operations have adjusted Force on Climate-related Financial Disclosure (TCFD). by the Lokka reservoir, we maintain not only Finn- to training new experts. The theme of our develop- well to this new era. We are paying attention espe- One of our key missions is to be an essential ish building heritage but also valuable traditional ment work throughout the entire 2020s is the people cially to the well-being and resources of both our part of Finland’s continuously developing electric landscape. We collaborate with the Ornithological behind the term “resources”. and our partners’ personnel. system. The need for climate-friendly electricity will Society of Lapland as well as support the banding of We diversified our own hydropower knowhow Our proactive approach to change was tested increase as we move from fossil fuels to renewable white-tailed eagles and monitoring of the birdlife in with experts in data analysis, utilisation and docu- not only by the pandemic, but also by the severe energy and towards Finland’s carbon-neutrality goal. the areas surrounding the reservoirs. mentation. We advanced our series of projects aimed flood in Kemijoki. We started preparing for the flood The role of hydropower is emphasised in the electri- Our long-term goal is to partially restore the natu- at promoting the “from data to knowledge, from kno- immediately at the beginning of the year, when the fication of, for example, traffic, heating and industry, ral migratory fish stock to Kemijoki and Ounasjoki riv- wledge to action” thinking especially in regards to SWE (Snow Water Equivalent) rose to an unusually required for reaching our climate targets. ers. In 2020 we continued, among other things, imple- technology, competences and work culture. high level. We initiated close cooperation with the Our power plants must remain operational and menting the Kalasydän system at the Taivalkoski pow- I am proud of the commitment of the person- flood authorities early on and worked together dur- our overall availability at a high level. We refur- er plant, carrying out spawn and fry stockings, and nel and partners of Kemijoki Oy to producing res- ing the pandemic with, for example, the Lapland bished the power plant at Porttipahta as planned preparing for the refurbishments of migratory fish ponsible hydropower. I also want to thank the resi- Rescue Department, Lapland’s Centre of Economic and increased the machinery output’s nominal val- habitats. We were especially pleased with the Natural dents of our operating areas for their activity and Development, Transport and the Environment, and ue. The new turbine runner hub improves the power Resources Institute Finland’s telemetry study tracking collaboration. municipalities located along the river. We worked plant’s efficiency and eco-friendliness. We donated salmon. According to the study, Kalasydän seems like together extremely well: we were able to curb the the old runner hub to the municipality of Sodankylä a potential migration solution for constructed rivers. peak of the flood and avoid major damages. as a memorial. As a part of the multiyear migratory fish project at TUOMAS TIMONEN Due to extreme weather conditions caused by Porttipahta became the first in the series of re- River Lieksanjoki, we made the decision to invest in a CEO climate change, floods will continue to increase in furbishing the Kitinen power plants. Next, we will smolt trapping device for the Pankakoski power plant. KEMIJOKI OY // REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2020 3 REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS CONTENTS REPORT OF THE BOARD OF DIRECTORS 5 KEMIJOKI OY FINANCIAL STATEMENTS 8 Company profit and loss account 9 Company balance sheet 9 Company cash flow statement 10 Accounting policies 11 Notes to the parent company financial statements 12 Proposal for the distribution of profit by the Board of Directors 19 Auditor’s signature 19 Auditors’ report 20 Statement by the Supervisory Board 21 4 KEMIJOKI OY // REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2020 REPORT OF THE BOARD OF DIRECTORS REPORT OF THE BOARD OF DIRECTORS Kemijoki Oy is a so-called Mankala company, which means that the main purpose of Kemijoki Oy is to produce electricity responsibly and cost-efficiently for its shareholders. An annual report has been compiled on the Company and its operations in 2020. PRODUCTION AND INVESTMENTS furbishing the dam gate 7 of the Petäjäskoski dam. At amounting to EUR 18.7 million. Other operating in- ny is the Annual General Meeting. The Annual Gen- The global coronavirus pandemic had a significant Kymijoki, we began planning for the refurbishment of come from rental and reservoir income totalled EUR eral Meeting was held on 1 April 2020. impact on working conditions and methods. In ad- the Inkeroinen power plant’s stone dams and bridges. 10.9 million. The Company has a Supervisory Board, whose dition, there was an exceptionally large spring flood At Taivalkoski, we renewed the power plant’s wa- The company’s loan portfolio totalled EUR 419.0 duty is to supervise the administration of the Com- in Lapland. During these exceptional circumstances, ter roofs and refurbished the power plant and dam million at the end of 2020. The company’s long-term pany, led by the Board of Directors and the CEO, we were able to continue our electricity production bridges at the power plant in Lieksankoski. Renewals loans amounted to EUR 322.2 million. A total of EUR and to instruct the Board in far-reaching and impor- and power plant refurbishments as planned. of electrical systems included, for example, the 20 kV 60 million of new long-term loans were taken out tant matters of principle. The Supervisory Board has During 2020, the Company’s hydropower plants system at the Ossauskoski power plant. The renewal during the year. At the end of the year, the Compa- at least six and at most eleven members. produced a total of 4,793 GWh of electricity, repre- programme of the power plants’ generator switches ny’s short-term loans amounted to EUR 96.8 million. In 2020, the Supervisory Board had ten members. senting 31 per cent of the hydropower electricity was continued at Vanttauskoski, Seitakorva, Mata- Short-term financing and liquidity management Until 1 April 2020, the Supervisory Board consisted of produced in Finland. In a long-term comparison, rakoski, Kelukoski and Petäjäskoski. have been arranged by way of a commercial paper Johanna Ojala-Niemelä as Chair and Hilkka Halo- production level was slightly higher than average. The detailed preparations for the Sierilä hydro- programme and credit limit arrangements. The Com- nen, Satu Hassi, Ari Henriksson, Esa Hyvärinen, Kaisa Water reservoirs increased by 405 GWh during the power plant continued. The Supreme Administrative pany’s liquidity remained good. The average interest Juuso, Mikko Kärnä, Juha Mäkelä, Mari-Leena Talvi- year.