FJORDANE ENERGI Martin Holvik, Chief Financial Officer Ragna Flatla - - PowerPoint PPT Presentation
SOGN OG FJORDANE ENERGI Martin Holvik, Chief Financial Officer Ragna Flatla Haugland, Environmental Specialist in SFE Produksjon AS Green Bond Investor Presentation, 9 May 2018 Agenda Sogn og Fjordane Energi Financial overview
Martin Holvik, Chief Financial Officer Ragna Flatla Haugland, Environmental Specialist in SFE Produksjon AS Green Bond Investor Presentation, 9 May 2018
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Sogn og Fjordane Holding AS (Sogn og Fjordane county municipality) 49,56% Askvoll municipality 1,48% Flora municipality 4,64% Gloppen municipality 3,46% Bremanger municipality 2,47% Selje municipality 1,34% Eid municipality 0,15% Naustdal municipality 0,07% BKK 36,83% 3
Sogn og Fjordane Energi Production Power Grid Services
Revenues NOK 1,186m EBITDA NOK 378m Revenues NOK 425m EBITDA NOK 163m Revenues NOK 71m EBITDA NOK 6.5m
(NOK mill)
2017 2016 2015 Operating Revenues 1,287 1,229 1,035 EBITDA 533 546 412 Profit before tax 365 359 212 Net Profit 193 189 113 Equity 2,747 2,503 2,334 Net Interest Bearing Debt 1,803 1,895 1,885 Total Assets 6,551 6,327 6,002 Power Production (TWh) 2.0 2.1 2.1
– 22 wholly- and partially owned plus 5 leased hydro power plants with mean production of 1.9 TWh – 4,000km of regulated grid network with 24,000 customers
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Skorge Svelgen I,II,III&IV, Fossekallen og Straumane Evebøfoss, Eidsfoss
Innvik Fossheim Mel Øvre- og Nedre Markevatn, Leknesvatn og Grunnevatn Stongfjorden og Oslandsbotten Åskåra I&II, Øksenelvane, Dauremål og Bjørndalen Skogheim og Sagefossen Sværen
partially owned renewable hydro power plants
– Power plants are located in the Sogn and Fjordane County – Reservoir capacity of 0.9 TWh
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Gjengedal (Gloppen), 143 GWh Norddalsfjord (Flora), 20 GWh Østerbø (Høyanger) 165 GWh (SFE-share 96 GWh) Øksenelvane (Bremanger), 35 GWh Under construction Concession applied for Hauge (Hellesylt), 15 GWh Nausta (Naustdal/Førde)
power plants) Svelgen (Bremanger), 30 GWh Concession not applied for Concession received Ommedal (Gloppen), 18 GWh Bredvatn (Bremanger), 67 GWh
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Okla (Stad, Selje), 21 MW Hennøy (Bremanger), 50 MW Lutelandet (Fjaler), 45MW Bremangerlandet, 78 MW Close to development. Falck Renewables SpA 80% ownership, Svelgen Kraft Holding 20% Wholly owned by Svelgen Kraft Holding
regulated grid with 24,324 customers
– NVE capital of NOK 1,339m 2017YE
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Reduction in grid losses (GWh)
SFE regional network SFE distribution network
69 62 55 58 56
20 40 60 80 2013 2014 2015 2016 2017
municipalities Hordaland and Sogn og Fjordane
– Sogn og Fjordane aim to keep SFE-values in today’s region by passing them the ownership on to local municipalities – Preemptive rights to purchase shares is a central topic
– Vestlandskraft (BKK, Hydro and SFE)
negotiating models for full structural integration
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Revenues (NOKm) Net profit (NOKm) EBITDA (NOKm)
1,160 1,315 1,629 1,042 1,229 1,287 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2012 2013 2014 2015 2016 2017 81 92 404 113 189 193 50 100 150 200 250 300 350 400 450 2012 2013 2014 2015 2016 2017 450 494 948 412 546 533 200 400 600 800 1,000 1,200 2012 2013 2014 2015 2016 2017
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Total Assets (NOKm) Equity Ratio (%) NIBD / EBITDA (x)
4.8x 3.7x 1.8x 4.6x 3.5x 3.4x 0.0x 1.0x 2.0x 3.0x 4.0x 5.0x 6.0x 2012 2013 2014 2015 2016 2017 29.3 34 37.5 38.9 39.6 41.9 5 10 15 20 25 30 35 40 45 2012 2013 2014 2015 2016 2017 4,410 5,274 5,837 6,002 6,327 6,551 1,000 2,000 3,000 4,000 5,000 6,000 7,000 2012 2013 2014 2015 2016 2017
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– 500 GWh potential identified – Will only be materialized if profitable and not jeopardizes investment grade status
– AMS project capex ~NOK 100m to be completed by 2019 – Annual capex ~NOK 100-200m, a large share related to connecting new renewable energy onto the grid 13
Power plant Prod. Capex (NOKm) Status
Østerbø 96 GWh 406 Project started – completion 2020 Hennøy Vindpark 30 GWH 90 Project started, SFE share 20% Total 696
issue in 2017 to fund investments
past two years
58 101 77 60 77 63 2012 2013 2014 2015 2016 2017
70% dividend of parent company results (current dividend policy) 50% dividend of net profits
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Debt maturity profile (NOKm)
100 200 300 400 500 600 2018 2019 2020 2021 2022 2023 2024 2025 2026
Bonds CP Bank
– Maintain a well diversified maturity profile where maximum 40% of outstanding debt mature within a 12 months period – Liquidity reserves shall cover minimum 50% of total maturities the next 6 months
NOK 400m in unused credit lines
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SFE shall maintain an investment grade company profile
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– Renewable Energy (Hydro, wind power with related infrastructure) – Energy Efficiency (Connection of renewable energy to distribution networks, upgrading of distribution networks and smart grids)
– The green bond proceeds may be used to purchase or develop new eligible projects as well as to renovate, upgrade and refinance existing eligible projects 17
– Focuses on a clean, efficient, cost effective grid. With 98% renewable energy in the Norwegian grid, these investments are not expected to promote the use of fossils fuels for power generation – Strong governance procedures for advanced environmental management – Strong monitoring, management and reporting of waste
– No significant weaknesses perceived in Sogn og Fjordane’s Green Bonds Framework” 18
– Environmental friendly hydro power productions and operation, achieved by water course knowledge and local contributions – A proactive approach towards environmental friendly solutions – Accommodating regulations given by authorities
– 80% vs. 60% recycling towards contractors in larger projects – Bio-gradable liquid on all transformers in distribution grid – Preparing for potential use of bio-gradable liquids in new power plants and substitution in older plants – Fish surveys and habitat measures – Flood controls – Voluntary cleaning up materials from old building sites 19
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comes to the environment
– Performing supervisory program for environmental objects based on best practice – Environmental heating through extracting heat from local fjords for main offices in Sandane and Florø
and waste management
Song og Fjordane with respect to administrating water management regulations (EU framework)
– Partner in research project RELEASE (local environment initiatives and sustainable energy)
– Industry research within renewable energy
– SFE has been an important partner in the “Grøn Skule” project in Gloppen kommune. The project highlights environmental friendly initiatives and sustainable energy solutions in local schools
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share, combined with a new 132 kV 20km grid cable
– Total investment of ~NOK 700m – to be completed 2020
finding environmental friendly solutions by detailed planning on landscape/environment
agenda in each building meeting with contractors/entrepreneurs
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Svelgen I Hennøy Vindpark
– Building of new tunnel and machinery to maintain production capacity
– SFE ownership 20%
provide insight to prioritized areas, SFE will provide an annual investor letter to investors including
– A list of projects financed and CO2 reductions – A summary of SFE’s Green Bond Development
will be verified by an internal committee
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Green Bond Investor Report
Sogn og Fjordane Energi AS
Martin Holvik
CFO +47 91 69 52 34 / martin.holvik@sfe.no