Highlights from Q3 2018:
• Adjusted net revenue of 227 NOKm, representing 23% YoY growth
• Adjusted EBIT of 58 NOKm, up 34% YoY
• 14% YoY growth in number of electricity deliveries, of which 2 % organic
• Gross revenue increasing +74% YoY, reflecting volume growth and significantly higher elspot prices than last year (+81%)
• Acquisition of Etne customer portfolio – transaction completed on 30 October
Another solid quarter
The power market has received a lot of attention in the third quarter of 2018. The failed bet of the Norwegian power trader Einar Aas baffled an entire industry. Elspot prices have been volatile, ranging from 0.62 NOK/kWh to 0.21 NOK/kWh in different parts of Norway. From a record-breaking warm summer, the September of 2018 was among the wettest we have seen since 1900. It has been an eventful quarter.
The Group’s results are solid, with a 23% YoY increase in adjusted net revenue and a 34% YoY increase in adjusted EBIT. Revenue from the variable products in the Consumer segment was positively affected by the significant drop in elspot prices in September. The last twelve months’ EBIT is all time high, at 379 NOKm.
YoY growth in number of deliveries in the Consumer and Business segments amounts to 14%, of which 2% organic. The Extended Alliance concept is growing by 7,672 deliveries QoQ and number of mobile subscriptions grew by 4,282 QoQ.
This quarter, the Group was announced as one of the winners of the United Nations “Momentum for Change” Climate Action Award. Fjordkraft’s efforts towards a climate neutral supply chain is named “Klimanjaro”, and annual CO2 emissions of about 56,000 tonnes are now being offset as a result of this initiative. Fjordkraft is the first Norwegian company to receive the award, and the award ceremony will take place in Katowice, Poland, 2-14 December 2018.
Kantar TNS’ Q3 2018 survey shows that Fjordkraft maintains the position as the number one electricity retail brand in the consumer segment. Fjordkraft has the highest brand awareness in Norway, the highest market share ever measured by Kantar TNS and the best customer satisfaction among the five most well-known brands.
On 25 October, Fjordkraft entered into an agreement with BKK AS to purchase the customer portfolio of Etne Elektrisitetslag. The customer portfolio consists of about 1,600 deliveries. Transaction details are comprised by confidentiality by seller’s request. The transaction was completed on 30 October 2018.
For more details, please see the enclosed report and presentation.
For queries, please contact:
Morten A. W. Opdal, Head of Controlling and Investor Relations, +47 970 62 526