Today Ellevio published its half-year report for January to June 2017. During January to June 2017, Ellevio’s customer base increased from 918,000 to approximately 936,000 customers at the end of June 2017. Almost 16,000 of the new customers were part of the integration of Nynäshamn Energi AB, which was finalised in June 2017. Net sales for the period amounted to SEK 3,538 million compared to 3,300 the same period in 2016 and operating profit amounted to SEK 1,213 million.
Between 2016 and 2019, Ellevio will invest SEK 10 billion in its networks. In Stockholm, modernising and increasing network capacity are in focus, and in rural areas, the work to renew the networks and secure them against weather-related disturbances continue. Ellevio also continues to automate the networks by introducing smart technology.
“There are several benefits to the investments. In the short term, customers will have access to a power grid with fewer and shorter power outages, which I think many customers, particularly in rural areas, value. The truly major benefits will first be seen in the long run – when we have a reliable and smart power network able to handle the requirements of a sustainable, digitalised and urbanised society,” says Ellevio’s CEO Johan Lindehag.
A smarter electricity grid also becomes the platform that enables the development of smart new energy services for the customers. Ellevio took a step in this direction in March when the procurement of next-generation smart meters commenced. The first meters are expected to be installed during the second half of 2019.
In early February, Ellevio issued a SEK 10 billion bond in the Swedish market. This transaction allowed Ellevio to replace earlier financing with more favourable financing featuring a longer maturity profile. Johan Lindehag commented the transaction “there was substantial interest from the market and we are very pleased with the outcome. This constitutes the largest corporate bond issued in SEK to date.” In addition, Ellevio were also granted a long-term EUR 250 million loan facility from The European Investment Bank. This loan was given for investments scheduled for implementation in 2017–2019.
The increase in investments also required increases in customer prices during the spring. With the latest change in prices, Ellevio wants to begin reducing the major price differences currently prevailing between urban and rural areas. Levelling prices would mean a reduction in some areas, freezing prices at their current level in others, and a certain increase in areas with the lowest prices. The company are awaiting a decision from Ei on harmonised pricing between three of Ellevio’s network areas.
On 19 May Ellevio announced a recommended offer to the shareholders of Elverket Vallentuna. Elverket is a well-run and professionally managed company with experienced and skilled employees. The acquisition of Elverket will allow Ellevio to continue to strengthen its already solid position in the growing Stockholm region. The acceptance period for the Elverket Vallentuna bid has been extended due to the summer holidays, and is expected to be closed by the end of September. By 17 August, 86.73% of shareholders had accepted the offer.
Safety has always been a key priority at Ellevio and in order to take the safety practices to the next level, a four-year safety programme has been initiated. The overall goal is to create a safe working environment - everyone working at or for Ellevio should come home safely from work. “This journey will obviously be challenging and will take time. I can’t promise that we will never again suffer a serious accident at Ellevio. But I can promise that the measures now being taken mark a significant improvement that greatly reduces the risk of this happening”, says Johan Lindehag.
Conference call with web presentation of Ellevio Half Year report, 2017
On Monday, September 18, 2017 at 04:30 p.m. CET, Ellevio AB (publ) will arrange a conference call with a web presentation to present its half year report for the period January – June 2017 for investors and bondholders.
CEO, Johan Lindehag, and Senior Vice President Treasury, Jan Seveborg, will present and comment on the report.
After the presentation there will be a Q&A session.
Please register to Maria Bang, Head of Financial and Sustainability Communication at email@example.com, and you will receive dial-ins.
A recorded version of the presentation will be available upon request after the meeting.
Download the report here.