Coal, Wind

Record profit for Elsam

21 March 2003 – Danish power utility Elsam released its 2002 results today showing a record after tax profit DKK 675m ($96.1m). The result is DKK 177m better than in 2001 and DKK 75m better than the latest published expectations.

Elsam said the better performance was due decreasing production costs and increasing electricity prices. The turnover has increased with DKK 285m to almost DKK 6bn, and with a net capital of DKK 10.6bn and a solvency ratio of 64 per cent Elsam’s Chairman of the board, Jens Bahne Jørgensen, said, “I can only characterise this years result as highly satisfactory, as the result is substantially better than the DKK 500m we originally estimated. It is especially satisfactory that we still make capital in a size that can support our present vision. This means that now we can intensify our efforts in Northern Europe and the Baltic Sea region, which are our primary markets”.

In 2002 Elsam invested DKK 2.4bn in new plants. A large part was invested in the world’s largest offshore wind farm at Horns Rev, which now produces electricity for the consumers. This also applies to Poland’s largest wind farm at the Baltic Sea, and Elsam has also enlarged its wind turbine capacity in Denmark further. In addition to this Elsam has reconstructed Herningværket for wood-chip firing as well as purchased the German energy group E.ON’s part of Enstedværket at Aabenraa.

Elsam’s Chief Executive Officer, Peter Høstgaard-Jensen commented, “The expectations for 2003 are based on the high market prices lately, which are due to reduced production possibilities in the Norwegian and Swedish hydro power systems due to lacks in water within the last 12 months. However, this is a temporary situation and therefore we still have to use our knowledge and efficiency to run our plants and select the projects we want to invest in – so we can follow our strategy to build, own and run the future’s sustained energy plants within and outside Denmark”.

The former state-owned utility is holding a general meeting on 25 April 2003 and in connection with this, the shareholders can look forward to obtaining dividends for the first time.

Elsam owns and operates six large power utilities, a number of power plants and several wind turbines in the western part of Denmark. On 1 January 2000 the six utilities merged into a new company, Elsam A/S., but Elsam has existed as a central co-operation forum for the utilities since 1956.