It Is Time for Pure Energy
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KEY FIGURES π ST A T K R A FT A NNU AL REPORT 2006 ANNUAL REPORT STATKRAFT’S BUSINESS 2 SUSTAINABILITY A ND REPORT STATKRAFT’S MARKETS 4 SUST 6 STATKRAFT’S BUSINESS AREAS HIGHLIGHTS IN 2006 AI 8 N FROM PRESIDENT AND CEO ABILI 10 BÅRD MIKKELSEN: ”Growth with pure energy” TY CONTENTS PURE ENERGY REPORT 12 14 MODERN ENERGY EUROPEAN ENERGY 16 2006 18 NATURAL ENERGY 20 REPORT FROM THE BOARD OF DIRECTORS Very good results due to good power opti- misation and high electricity prices 30 MANAGEMENT REPORT Market and business conditions 30 Generation & Markets 34 New Energy 36 Regional 38 Risk and performance management 40 Financial performance 44 Environment 48 Corporate social responsibility 54 Competence 58 FINANCIAL STATEMENTS 61 Statkraft Statkraft AS Group Income Statement 88 62 Balance Sheet 89 63 Cash Flow Statement 90 64 Accounting Principles 91 65 Notes 91 70 Auditor’s Report 97 97 98 SUSTAINABILITY STATEMENT Sustainability Statement 98 GRI Index 102 ISO Certificates 103 About the Sustainability Statement 104 Auditor’s Statement 105 106 ABOUT THE COMPANY Group Management 106 Addresses 107 Organisation 107 IT IS TIME FOR Financial calendar 107 PURE ENERGY KEY FIGURES π ST A T K R A FT A NNU AL REPORT 2006 ANNUAL REPORT STATKRAFT’S BUSINESS 2 SUSTAINABILITY A ND REPORT STATKRAFT’S MARKETS 4 SUST 6 STATKRAFT’S BUSINESS AREAS HIGHLIGHTS IN 2006 AI 8 N FROM PRESIDENT AND CEO ABILI 10 BÅRD MIKKELSEN: ”Growth with pure energy” TY CONTENTS PURE ENERGY REPORT 12 14 MODERN ENERGY EUROPEAN ENERGY 16 2006 18 NATURAL ENERGY 20 REPORT FROM THE BOARD OF DIRECTORS Very good results due to good power opti- misation and high electricity prices 30 MANAGEMENT REPORT Market and business conditions 30 Generation & Markets 34 New Energy 36 Regional 38 Risk and performance management 40 Financial performance 44 Environment 48 Corporate social responsibility 54 Competence 58 FINANCIAL STATEMENTS 61 Statkraft Statkraft AS Group Income Statement 88 62 Balance Sheet 89 63 Cash Flow Statement 90 64 Accounting Principles 91 65 Notes 91 70 Auditor’s Report 97 97 98 SUSTAINABILITY STATEMENT Sustainability Statement 98 GRI Index 102 ISO Certificates 103 About the Sustainability Statement 104 Auditor’s Statement 105 106 ABOUT THE COMPANY Group Management 106 Addresses 107 Organisation 107 IT IS TIME FOR Financial calendar 107 PURE ENERGY STATKRAFT ANNUAL REPORT 2006 --107 ABOUT THE COMPANY ADDresses Head Office Statkraft Sverige AB Statkraft UK Ltd FINANCIAL KEY FIGURES NON-FINANCIAL KEY FIGURES Statkraft Nipan 51 1 Hammersmith Grove PO Box 200 Lilleaker SE-881 52 Sollefteå Hammersmith 0216 Oslo Sweden GB-London W6 0NB PRO FORMA UNIT OF ADJUSTED ** ADJUSTED ** ADJUSTED ** PRO FORMA PRO FORMA Norway Tel: +47 24 06 70 00 United Kingdom STATKRAFT AS GROUP MEASUREMENT 2006 2006 2005 2005 2004 2004 2003 ENVIRONMENT UNIT OF MEASUREMENT 2006 2005 2004 2003 Tel: +47 24 06 70 00 Fax: +47 24 06 70 01 Tel: +44 20 3008 8207 From the Income Statement Power production, annual mean TWh 42.2 42.0 41.3 41.7 Fax: +47 24 06 70 01 Fax: +44 20 3008 8206 Gross operating revenues NOK mill. 16 225 16 225 14 015 15 021 9 832 10 842 11 425 of which hydropower TWh 41.5 41.4 41.2 41.7 Office address: Lilleakerveien 6 Statkraft Suomi Oy EBITDA NOK mill. 11 499 11 453 9 505 10 233 5 936 6 791 6 937 of which wind power TWh 0.7 0.6 0.1 0.02 Website: www.statkraft.com PO Box 18 Statkraft Southeast Europe EOOD Operating profit NOK mill. 9 998 9 952 8 008 8 375 4 522 5 377 5 647 Power production, actual TWh 45.7 48.5 34.3 39.2 FI-48601 Kotka 10 Tri Ushi Str., Office 5 Share of profit from associated companies NOK mill. 1 783 1 689 1 936 1 577 1 493 1 493 1 086 of which hydropower TWh 45.2 48.1 34.2 39.1 Net financial items NOK mill. -1 816 -1 816 -1 838 -1 504 -2 572 -2 240 -2 564 Statkraft Region Northern Norway Finland BG-1303 Sofia Profit before tax NOK mill. 9 966 9 826 8 107 8 449 3 443 4 630 4 169 of which wind power TWh 0.5 0.4 0.1 0.1 PO Box 163 Tel: +358 10 77 67 600 Bulgaria Net profit NOK mill. 6 403 6 285 5 343 5 620 3 169 4 415 2 661 District heating production TWh 0.4 0.4 0.4 0.4 8512 Narvik Office address: Pajatie 65 Tel: +359 2 400 1380, -81, -82 Proportion of renewable power produced * % 99.6 99 99 99 Norway Fax: +359 2 986 7012 From the Balance Sheet Serious environmental non-compliances No. 0 1 0 4 Tel: +47 76 96 40 00 Statkraft Markets BV Property, plant & equipment * Non-renewable power production relates to district heating production based on waste and oil. and intangible assets NOK mill. 57 348 57 348 52 812 52 812 47 816 47 816 47 136 Fax: +47 76 96 40 01 Gustav Mahlerplein 100 Statkraft Western Balkans d.o.o Investments in associated companies NOK mill. 30 997 30 997 28 793 28 793 28 751 28 751 28 297 Office address: Stasjonsveien 60 NL-1082 MA Amsterdam Vladimira Popovica 6 SOCIETY UNIT OF MEASUREMENT 2006 2005 2004 2003 Other assets NOK mill. 8 206 8 206 9 249 9 249 11 948 11 948 11 179 The Netherlands YU-11070 New Belgrade Total assets NOK mill. 96 552 96 552 90 854 90 854 88 515 88 515 86 612 * Statkraft Region Central Norway Tel: +31 20 347 27 80 Serbia Total equity NOK mill. 38 805 38 805 39 994 39 994 39 015 39 015 33 588 Distribution of value added Interest-bearing debt NOK mill. 32 469 32 469 31 251 31 251 39 827 39 827 40 671 owner (incl. minority interests) NOK mill. 5 598 4 788 3 474 2 655 Gaupnegrandane Fax: +31 20 347 27 99 Tel: +381 (11) 222 3755 Capital employed, basic 1 NOK mill. 43 094 43 094 41 364 41 364 41 493 41 493 40 012 state and local authorities NOK mill. 4 569 3 735 985 2 223 6868 Gaupne Fax: +381 (11) 222 3041 lenders NOK mill. 2 087 2 312 2 954 3 033 Norway Statkraft Markets GmbH Cash flow employees NOK mill. 1 139 1 185 1 075 1 257 Tel: +47 57 68 92 00 Niederkasseler Lohweg 175 Trondheim Energi AS Net change in cash flow the company NOK mill. 342 685 823 -73 Fax: +47 57 68 92 01 DE-40547 Düsseldorf 7005 Trondheim from operating activities NOK mill. 6 544 6 544 12 250 12 250 4 013 4 013 8 187 Statutory-priced industrial contracts 16 Germany Norway Dividend for the year to owner volume sold TWh 13.1 14.6 17.8 18.6 (incl. minority interests) NOK mill. 5 598 5 598 4 788 4 788 3 474 3 474 2 655 value lost (based on volume sold) NOK mill. -3 357 -1 719 -2 296 -3 503 Statkraft Region Western Norway Tel: +49 211 60 244 000 Tel: +47 73 96 10 11 Depreciation NOK mill. 1 501 1 501 1 497 1 858 1 414 1 414 1 290 16 PO Box 233 Fax: +49 211 60 244 199 Fax: +47 73 96 11 90 2 Concessionary fixed-price contracts Maintenance investments NOK mill. 573 573 468 468 487 487 706 4201 Sauda Office address: Sluppenvegen 6 Expansion investments in new volume sold TWh 2.5 2.8 2.8 2.9 generating capacity 3 NOK mill. 3 125 3 125 1 767 1 767 1 061 1 061 571 value lost (based on volume sold) NOK mill. -785 -533 -521 -731 Norway Statkraft Financial Energy AB Investments in shareholdings 4 NOK mill. 750 750 4 511 4 511 287 287 424 Reputation 17 Tel: +47 52 78 64 00 Hitechbuilding 92 Skagerak Energi AS Cash and cash equivalents NOK mill. 1 758 1 758 4 374 4 374 5 292 5 292 1 815 professionals Scale of 1 to 100, where 100 is best 74 77 - - Fax: +47 52 78 64 01 SE-101 52 Stockholm PO Box 80 Unused drawing rights NOK mill. 5 600 5 600 5 334 5 334 5 700 5 700 6 400 general public Scale of 1 to 100, where 100 is best 40 45 - - Sweden 3901 Porsgrunn * 2003 and 2004 figures are proforma figures. Financial variables Statkraft Region Eastern Norway Tel: +47 24 06 70 00 Norway FFO interest coverage 5 4.4 4.4 3.6 4.1 2.3 2.7 2.2 PO Box 4 Fax: +47 24 06 77 30 Tel: +47 35 93 50 00 Interest-bearing debt ratio 6 % 45.6 45.6 43.9 43.9 50.5 50.5 54.8 COMPETENCE UNIT OF MEASUREMENT 2006 2005 2004 2003 3880 Dalen Office address: Sveavägen 9 Fax: + 47 35 55 97 50 Equity ratio 7 % 40.2 40.2 44.0 44.0 44.1 44.1 38.8 Norway Office address: Storgata 159 b Full-time jobs equivalent 31.12. No. 2 087 1 971 1 887 1 965 Long-term rating – Standard & Poor’s BBB+ BBB+ BBB+ BBB+ BBB+ BBB+ BBB+ Tel: +47 35 07 95 00 Long-term rating – Moody’s Baa1 Baa1 Baa1 Baa1 Baa2 Baa2 Baa2 H1 No.