2019 Extract Of
Total Page:16
File Type:pdf, Size:1020Kb
EXTRACT OF ANNUAL REPORT 2019 08 A TALK WITH THE CEOS Change at the top at Skagerak Energi 20 PURE DEVELOPMENT Fully electric future 48 PURE GROWTH More power from each drop 94 PURE WELFARE Welcome warmth 28 OUR STRATEGY The greenest credentials of all Contents This is Skagerak 06 Key figures 08 A word from the CEOs 14 Important events 16 Our facilities 18 History 20 Case study – Pure development Operational performance 26 Management 28 Our strategy 32 Skagerak Kraft incl. key figures 36 Skagerak Nett incl. key figures 40 Skagerak Varme incl. key figures 44 Skagerak Energipartner incl. key figures 48 Case study – Pure growth Corporate social responsibility 54 Our corporate social responsibility 56 Stakeholder dialogue 58 Climate-friendly production 64 Secure power supply 67 Dialogue with landowners 68 Health, safety and the working environment 72 HR policy and recruitment 76 Information security and ICT security 78 Social balance sheet 84 Sponsorship activities in 2019 94 Case study – Pure welfare The Board's Report and Financial Statement 100 Report from the Board of Directors 2019 110 The Board of Directors 112 Corporate governance 120 Income statement 121 Total comprehensive income 122 Balance sheet 124 Statement of cash flows 06 Key figures 08 A word from the CEOs 14 Important events 16 Our facilities 18 History 20 Case study – Pure development THIS IS SKAGERAK PAGE — 3 SKAGERAK ENERGI SKAGERAK THIS IS SKAGERAK OF ANNUAL REPORT 2019 EXTRACT THIS IS SKAGERAK This is Skagerak OUR VISION Skagerak Energi shall be a forward-looking supplier of clean energy that contributes to social welfare, economic growth and development. SKAGERAK ENERGI SKAGERAK OUR VALUES Competent Responsible Innovative We will use our knowledge and experi- We will create value while showing We will think new thoughts, develop ence to reach ambitious goals and be consideration for our employees, opportunities and create solutions. recognised as a leader in our industry. customers, society and the environment. CORE ACTIVITIES EXTRACT OF ANNUAL REPORT 2019 EXTRACT Skagerak Skagerak Skagerak Skagerak Kraft Nett Varme Energipartner Produced 4,947 GWh 7,135 GWh supplied to Supplied 151 GWh of heat Supplies energy solutions to 205,545 customers industry and the transport sector in the Nordic region SKAGERAK ENERGI’S OTHER SHAREHOLDINGS % % 14.9% 49 33.4 PAGE — 4 PAGE Air Liquide Skagerak Laugstol Fjordkraft Supplier of natural and biogas Electrical contractor Power sales THIS IS SKAGERAK PAGE — 5 SKAGERAK ENERGI SKAGERAK EXTRACT OF ANNUAL REPORT 2019 EXTRACT THIS IS SKAGERAK Key figures 2015–2019 Unit 2019 2018 2017 2016 2015 Financial performance Gross operating revenues NOK million 3,376 3,450 2,773 2,489 2,381 Operating profit (EBIT) NOK million 1,681 1,432 1,107 568 894 Net profit for the year NOK million 2,152 1,070 531 378 692 Operating margin1 per cent 49.8 41.5 39.9 22.8 37.6 Return on equity2 per cent 29.9 18.7 10.4 8.0 16.5 Balance sheet Total assets NOK million 14,933 13,032 12,586 11,599 11,946 Total liabilities NOK million 6,668 6,894 7,274 6,710 7,343 Equity NOK million 8,265 6,138 5,312 4,889 4,603 SKAGERAK ENERGI SKAGERAK Liquidity Cash flow from operating activities NOK million 1,101 1,515 931 986 602 Total investments NOK million 953 973 852 660 659 No. of employees Women 166 156 154 159 160 Men 470 477 457 451 457 Total 636 633 611 610 617 Production Power production GWh 4,947 5,820 5,949 5,993 6,071 Grid customers Number 205,545 198,666 194,327 190,496 188,700 Grid km 16,969 17,100 17,003 16,933 16,772 Electrical energy delivered to end users GWh 7,135 3) 7,485 7,282 7,110 7,008 Heat deliveries GWh 151 141 120 114 88 Other matters Purchase of goods and services NOK million 729 845 591 615 545 Tax and public charges paid NOK million 878 997 690 564 397 EXTRACT OF ANNUAL REPORT 2019 EXTRACT Sickness absence rate per cent 2.9 3.6 4.3 3.1 3.8 Total number of injuries per million working hours (H2) Number 10.5 2.1 2.2 4.2 6.8 INVESTMENTS RECRUITMENT SICKNESS ABSENCE RATE 52953 2.9% Investments for the year of NOK The Skagerak Group employed The sickness absence rate fell PAGE — 6 PAGE 953 million were mainly related 52 new staff in 2019, bringing the from 3.6 per cent in 2018 to to new grid facilities but also to total number of new recruits in the 2.9 per cent in 2019. power and heat production. last two years to 97. 1 (Operating profit * 100) / Gross operating revenues 2 (Net profit for the year * 100) / Average equity 3 Preliminary calculation THIS IS SKAGERAK POWER PRICES NO2 AREA øre/kWh 40 Power prices remained high at the start of 2019 but fell significantly 35 as the year progressed. This was mainly due to a marked decrease in 30 the price of gas, which reduced the cost of producing gas power. This 25 in turn pushed down power prices in the German market, which also 20 impacted Nordic power prices. 15 Average price (23.8) 10 Power price NO2 area 5 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 SKAGERAK ENERGI SKAGERAK POWER PRODUCTION ELECTRICAL ENERGY DELIVERED GWh DELIVERED HEAT GWh 7,135 151 -15%Skagerak Kraft’s total production amounted to 4,947 GWh, a decrease of 15 per cent in Skagerak Nett delivered 7,135 GWh of Skagerak Varme delivered 151 GWh of clean 2019. electricity to its customers, a decrease of energy to its district heating customers, an 4.9 per cent. increase of 7 per cent. NET PROFIT FOR THE YEAR AFTER TAX NOK million 2,500 The increase of NOK 1,082 million in the net profit for the year 2,000 compared with 2018 is mainly attributable to the reduction in the 1,500 shareholding in Fjordkraft from OF ANNUAL REPORT 2019 EXTRACT 1,000 29.7 per cent (NOK 462 million) and the revaluation of the residual 500 shareholding in the company (NOK 559 million). 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 CONTRIBUTION TO SOCIETY NOK billion INJURIES Number 16 14 12 NOK 10 8 6 billion 4 1.2 2 0 PAGE — 7 PAGE Skagerak Energi contributed 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 NOK 1.2 billion to regional financial activities in 2019. THIS IS SKAGERAK Change at the top at Skagerak SKAGERAK ENERGI SKAGERAK Energi On 30 March this year, Jens Bjørn Staff (52) took over as CEO of Skagerak Energi. He was previously CFO at Orkla ASA and replaces Knut Barland (62), who steps down after leading Skagerak Energi since August 2008. Jens Bjørn is married with four children and lives in Larvik. EXTRACT OF ANNUAL REPORT 2019 EXTRACT PAGE — 8 PAGE “No one knows quite how Europe will achieve the ambitious targets for zero greenhouse gas emissions by 2050 [...] But we do know that the power industry will play a key role along the way.” JENS BJØRN STAFF INCOMING CEO THIS IS SKAGERAK You’re returning to an industry you know well right amount of electricity at the right time, but in having previously been CFO of Statkraft, Skagerak a smart way so that we maintain high quality and Energi’s largest shareholder. What are the greatest low costs, while delivering added value in the challenges facing Skagerak Energi? eyes of society and our customers. The power distribution industry is also currently undergoing Jens Bjørn: Norway is uniquely placed thanks structural changes. We will have to monitor these to its extensive renewable power production, closely and position ourselves for the future. most of which is flexible hydropower. The same applies to our company. No one knows exactly You’re leaving with best-ever result? A nice way to how Norway and the rest of Europe will achieve leave? the ambitious targets for zero greenhouse gas emissions by 2050 announced by the EU in Knut: Well, of course, even if some of it is down December. However, one thing that is certain to chance. We decided to sell more of our shares is that a major transformation will be required in Fjordkraft and did well from that, and the in many areas of society, and that the power value of our remaining shareholding has also ENERGI SKAGERAK industry will make a key contribution to achieving increased. While these are one-off effects, they the target. The task facing our company is to are also the result of concerted efforts across adapt to a situation with an increasing share the company. The fact that all our wholly owned of non-flexible power, as coal, gas and nuclear subsidiaries are also performing very well is power is replaced by wind and solar energy, arguably just as important. and to exploit the resulting opportunities and challenges. Solar and wind power currently Knut: What I’m most pleased with, however, is account for less than 20 per cent of total power the progress we have made within HSE. I arrived production in Europe. If this share increases as from the oil and gas sector, so was used to high planned, the market will fundamentally change in standards. Everyone I met from Skagerak Energi the next few years. assured me that HSE and job safety were a top priority, but that’s not how it looked to me.