Fingrid Oyj
Interim report 26.10.2010, at 11.00 EET
Fingrid GROUP'S INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2010
Review of operations
Power system operation
From July to September 2010, the electricity consumption in Finland totalled
18.5 terawatt hours (17.2 TWh during the corresponding period in 2009). A total
of 15.0 TWh of electricity was transmitted in Fingrid's grid during the same
period, representing 81 per cent of the electricity consumption in Finland.
Between January and September, the electricity consumption in Finland totalled
63.1 TWh (58.3 TWh), up by 8.2 per cent on the corresponding period in 2009.
Electricity transmissions between Finland and Sweden were dominated by exports
from Finland to Sweden in the early part of the year, while imports from Sweden
to Finland were in a majority from July onwards. Between July and September, 1.5
TWh of electricity was imported from Sweden to Finland (1.2 TWh), and 0.4 TWh
(0.4 TWh) was exported from Finland to Sweden. Between January and September,
2.1 TWh of electricity was imported from Sweden to Finland (2.2 TWh), and 4 TWh
(2.8 TWh) was exported from Finland to Sweden.
Electricity transmissions between Finland and Estonia were dominated by imports
to Finland in the early part of the year. Since July, the transmissions have
been dominated by exports from Finland to Estonia. The volume of electricity
imported from Estonia from July to September was 0.2 TWh (0.2 TWh), and 0.2 TWh
(0 TWh) was exported from Finland to Estonia between July and September. The
volume of electricity imported from Estonia from January to September was 1.4
TWh (1.1 TWh), and 0.2 TWh (0.1 TWh) was exported from Finland to Estonia.
The full import capacity from Russia was in use during the review period. The
annual maintenance of the direct current connection restricted the import
capacity from Russia in July. Electricity imports from Russia to Finland between
July and September were 2.3 TWh (2.5 TWh), and between January and September 8.3
TWh (8.6 TWh).
A report of the impact of increasing wind power capacity on the operation of the
Nordic power system was completed in early September. The report states that an
increase in the Nordic wind power capacity from the present level of approx.
5,000 megawatts to about 15,000-20,000 megawatts by 2020 can be controlled.
However, wind power will call for various measures safeguarding the system
security of the power system. The TSOs have made preparations for these
measures.
The high-voltage transmission grid in Finland survived the summer storms with
little damage. The Asta storm, which affected distribution networks in
particular, caused tree faults on one Fingrid's 110 kilovolt transmission line
in South-Eastern Finland. A powerful storm caused blackouts of a few hours on
Fingrid's 110 kilovolt transmission lines in Häme in early August. Gas turbines
had to be started after the Loviisa nuclear power plant had disconnected from
the grid on 12 July. At the same time, electricity was imported from Sweden at
the full volume. In mid-August, there were voltage drops in the grid in
South-Western Finland, caused by connections made at a customer's power plant.
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| Power system operation | 1-9/10 | 1-9/09 | 7-9/10 | 7-9/09 |
--------------------------------------------------------------------------------
| Electricity consumption in | 63.1 | 58.3 | 18.5 | 17.2 |
| Finland TWh | | | | |
--------------------------------------------------------------------------------
| Fingrid's transmission | 49.8 | 45.6 | 15.0 | 13.9 |
| volume TWh | | | | |
--------------------------------------------------------------------------------
| Fingrid's loss energy | 0.9 | 0.7 | 0.2 | 0.2 |
| volume TWh | | | | |
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| Electricity transmissions | | | | |
| Finland-Sweden | | | | |
--------------------------------------------------------------------------------
| exports to Sweden TWh | 4.0 | 2.8 | 0.4 | 0.4 |
--------------------------------------------------------------------------------
| imports from Sweden TWh | 2.1 | 2.2 | 1.5 | 1.2 |
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| Electricity transmissions | | | | |
| Finland-Estonia | | | | |
--------------------------------------------------------------------------------
| exports to Estonia TWh | 0.2 | 0.1 | 0.2 | 0.0 |
--------------------------------------------------------------------------------
| imports from Estonia TWh | 1.4 | 1.1 | 0.2 | 0.2 |
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| Electricity transmissions | | | | |
| Finland-Russia | | | | |
--------------------------------------------------------------------------------
| imports from Russia TWh | 8.3 | 8.6 | 2.3 | 2.5 |
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Promotion of electricity market
The average price (system price) in Nord Pool's spot market between July and
September 2010 was 45.90 euros per megawatt hour (31.30 €/MWh during the
corresponding period in 2009), and the area price for Finland was 47.70 €/MWh
(35.60 €/MWh). Between January and September, the average price in Nord Pool's
spot market was 50.20 €/MWh (34.50 €/MWh), and the area price for Finland was
53.70 €/MWh (36.00 €/MWh).
Between January and September 2010, congestions in the transmission grid on the
border between Finland and Sweden restricted electricity trade for 7.2 per cent
of the time (5.1 per cent). Especially in the spring, there were situations
where the transmission capacity from Finland to Sweden was inadequate. The
congestions diminished in the late summer. Congestions in the transmission grid
restricted electricity trade on the border between Finland and Estonia for 44.0
per cent of the time between April and September.
The congestion income on the border between Finland and Sweden, resulting from
transmission congestions, totalled 7.9 million euros (0.9 million euros) between
January and September. From April to September, the congestion income caused by
transmission congestions on the border between Finland and Estonia totalled 6.5
million euros. Fingrid's portion of the congestion income between Finland and
Estonia was 3.3 million euros, which Fingrid has paid in grid rent to the owners
of the transmission connection.
The Nordic congestion income between January and September was 160.0 million
euros (54.4 million euros). Most of the Nordic congestion income was created on
the borders between the bidding areas of Southern Norway and Denmark.
Fingrid's counter trade costs from January to September were approx. 0.1 million
euros (0.6 million euros).
The full electricity transmission capacity of the Estlink 1 submarine cable
between Finland and Estonia was made available to the Elspot market of the
Nordic electricity exchange from 20 September 2010. Fingrid and the Estonian
transmission system operator Elering rented 250 megawatts of the transmission
capacity of the Estlink 1 connection in the spring, and also the remaining
capacity of 100 megawatts. In other words, a total of 350 megawatts of
transmission capacity between Estonia and Finland is now available to the
electricity market. Moreover, Fingrid has made a capital investment decision on
the construction of EstLink 2, the second direct current transmission link
between Estonia and Finland. The capacity of the planned transmission link is
650 megawatts and the costs of the project total approx. 320 million euros.
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| Electricity market | 1-9/10 | 1-9/09 | 7-9/10 | 7-9/09 |
--------------------------------------------------------------------------------
| Nord Pool system price, | 50.2 | 34.5 | 45.9 | 31.3 |
| average €/MWh | | | | |
--------------------------------------------------------------------------------
| Area price Finland, average | 53.7 | 36.0 | 47.7 | 35.6 |
| €/MWh | | | | |
--------------------------------------------------------------------------------
| Congestion income in the | 160.0 | 54.4 | 16.7 | 36.2 |
| Nordic countries million € | | | | |
--------------------------------------------------------------------------------
| Congestion income between | 7.9 | 0.9 | 2.2 | 0.4 |
| Finland and Sweden million | | | | |
| € | | | | |
--------------------------------------------------------------------------------
| Congestion hours between | 7.2 | 5.1 | 1.1 | 3.7 |
| Finland and Sweden % | | | | |
--------------------------------------------------------------------------------
| Fingrid's share of the | 7.9 | 3.7 | 1.3 | 2.4 |
| congestion income in the | | | | |
| Nordic countries million € | | | | |
--------------------------------------------------------------------------------
| Congestion income between | 6.5 | - | 3.4 | - |
| Finland and Estonia | | | | |
--------------------------------------------------------------------------------
| Congestion hours between | 44.4 | - | 24.9 | - |
| Finland and Estonia % | | | | |
--------------------------------------------------------------------------------
| Fingrid's share of the | 3.3 | - | 1.7 | - |
| congestion income between | | | | |
| Finland and Estonia* | | | | |
--------------------------------------------------------------------------------
* has been paid in grid rent to the owners of the transmission connection
Capital expenditure and grid maintenance
The Group's gross capital expenditure between July and September was 24 million
euros (35 million euros during the corresponding period in 2009). Gross capital
expenditure between January and September totalled 87 million euros (88 million
euros).
Fingrid is making significant capital investments in the grid in Finland and in
cross-border connections in 2010. The renovation project of the Hikiä-Vanaja 110
kilovolt transmission line and a new 110 kV substation in Tampere at Multisilta
were completed in the autumn.
At the end of September, Fingrid confirmed the construction of the EstLink 2
submarine cable between Finland and Estonia within an expedited schedule. In the
spring, Fingrid announced that the building of the submarine cable is subject to
the functioning of the Estonian electricity market and the subsidy of 100
million euros from the European Union for the project. Both of these conditions
have been met, and the submarine cable of 320 million euros will be built in
co-operation with the Estonian transmission system operator Elering. The new
transmission link will raise the total electricity transmission capacity between
the two countries to approx. 1,000 megawatts. The goal is that the new link will
be brought to commercial operation at the beginning of 2014.
In July, the Finnish Government granted a land expropriation permit for the
electricity transmission connection between Yllikkälä in Lappeenranta and
Huutokoski in Joroinen in Eastern Finland. The new 400 kilovolt connection will
be built parallel with existing power lines to increase the transmission
capacity in South-Eastern Finland. The main contracts for the project were
subjected to competitive bidding in the autumn, and the procurement decisions
concerning the transmission line purchases and the Yllikkälä substation have
been made. The transmission line is due to be ready in the spring of 2013.
Moreover, Fingrid has made the procurement decision concerning the supply of
conductors for the transmission line projects of 2011 to 2012.
Other current affairs
In early September, Fingrid signed a contract with YIT Rakennus Oy concerning
the building of Fingrid's new headquarters in Käpylä in Helsinki. Fingrid's
facilities will cover about a half of the new building, the total area of which
is 14,000 m2. The office building will be completed for Fingrid at the end of
October 2012.
Financial result
The Group's revenue from July to September was 86 million euros (71 million
euros). The sales of balance power were 32 million euros (18 million euros
during the corresponding period in 2009) and purchases of balance power 26
million euros (18 million euros). The IFRS profit/loss before taxes was 2
million euros (- 6 million euros) between July and September.
The Group's revenue was 318 million euros (255 million euros) between January
and September. The other operating income was 3 million euros (1 million euros).
Grid revenue grew from the previous year as a result of increased electricity
consumption in the early part of 2010 and the 4.5 per cent raise in the grid
tariff at the beginning of the year, to 147 million euros (131 million euros).
Cross-border transmission income remained at the same level as in the previous
year. Due to the high Nordic congestion income in the early part of the year,
Fingrid's congestion income grew by approx. 4 million euros on the previous
year. The sales of balance power were 111 million euros (66 million euros) and
purchases 96 million euros (61 million euros).
The high transmission losses in the Finnish grid in the early part of 2010
together with the high area price of electricity for Finland raised Fingrid's
loss energy costs by 10 million euros on the previous year. Both the maintenance
management costs of the grid and the costs of the power system reserves were
slightly higher than in 2009. Moreover, higher capital investments raised the
amount of depreciation. Fingrid's portion of the European inter-TSO
compensations decreased slightly. The costs of the peak load reserve system and
of the feed-in tariff for peat remained at the same level as in 2009.
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| Revenue and other | 1-9/10 | 1-9/09 | 7-9/10 | 7-9/09 |
| operating income | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Grid service revenue | 147.3 | 130.7 | 35.8 | 32.2 |
--------------------------------------------------------------------------------
| Sales of balance power | 110.8 | 66.4 | 31.7 | 18.3 |
--------------------------------------------------------------------------------
| Cross-border transmission | 17.6 | 18.0 | 5.3 | 5.4 |
--------------------------------------------------------------------------------
| Nordic congestion income | 7.9 | 3.7 | 1.3 | 2.4 |
--------------------------------------------------------------------------------
| Peak load reserve | 11.5 | 9.4 | 3.4 | 3.0 |
--------------------------------------------------------------------------------
| ITC income | 14.5 | 21.9 | 4.8 | 7.8 |
--------------------------------------------------------------------------------
| Feed-in tariff for peat | 0.7 | 0.3 | 0.3 | 0.1 |
--------------------------------------------------------------------------------
| Other revenue | 8.0 | 4.2 | 3.0 | 1.6 |
--------------------------------------------------------------------------------
| Other operating income | 2.6 | 1.5 | 0.5 | 0.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Revenue and other income | 320.9 | 255.9 | 86.1 | 71.3 |
| total | | | | |
--------------------------------------------------------------------------------
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| Costs | 1-9/10 | 1-9/09 | 7-9/10 | 7-9/09 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Purchase of balance power | 96.2 | 60.8 | 26.2 | 17.5 |
--------------------------------------------------------------------------------
| Purchase of loss energy | 46.7 | 36.7 | 12.0 | 11.4 |
--------------------------------------------------------------------------------
| Depreciation | 49.9 | 48.2 | 16.6 | 15.9 |
--------------------------------------------------------------------------------
| Reserves | 16.0 | 15.7 | 5.2 | 5.9 |
--------------------------------------------------------------------------------
| Peak load reserve | 9.6 | 9.9 | 3.1 | 3.1 |
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| Personnel | 14.1 | 14.1 | 4.0 | 3.9 |
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| Maintenance management | 12.8 | 12.3 | 3.7 | 4.7 |
--------------------------------------------------------------------------------
| ITC charges | 7.4 | 11.9 | 3.0 | 3.4 |
--------------------------------------------------------------------------------
| Feed-in tariff for peat | 0.6 | 0.2 | 0.2 | 0.1 |
--------------------------------------------------------------------------------
| Other costs | 17.9 | 13.6 | 6.8 | 4.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Costs total | 271.2 | 223.4 | 80.8 | 70.0 |
--------------------------------------------------------------------------------
The operating profit between January and September was 51 million euros (35
million euros), which contains 2 million euros (2 million euros) of positive
change in the fair value of electricity derivatives. The profit before taxes was
42 million euros (20 million euros), and the total comprehensive income was 39
million euros (11 million euros). The equity ratio was 28.3 per cent (26.4 per
cent) at the end of the review period.
The Group's income flow is characterised by seasonal fluctuations, which is why
the financial result for the entire year cannot be directly estimated on the
basis of the nine-month result.
Financing
The financial position of the Group continued to be satisfactory. The net
financial costs of the Group between July and September were 2 million euros (-6
million euros). The net financial costs between January and September were -10
million euros (-15 million euros). Financial assets recognised at fair value in
the income statement, and cash and cash equivalents amounted to 202 million
euros (204 million euros) at 30 September 2010. The interest-bearing
liabilities, including derivative liabilities, totalled 1,041 million euros (977
million euros), of which 697 million euros (627 million euros) were long-term
and 344 million euros (350 million euros) were short-term.
The counterparty risk involved in the derivative contracts relating to financing
was 51 million euros. The company has an undrawn revolving credit facility of
250 million euros.
Two international rating agencies updated Fingrid Oyj's credit ratings during
the review period. On 9 August, Fitch Ratings downgraded Fingrid's long-term
Issuer Default Rating (IDR) to 'A+'. Fitch Ratings assigned Fingrid's senior
unsecured debt the rating 'AA-'. Fingrid's short-term IDR was downgraded to
'F1'. The company's outlook was rated as negative.
Standard & Poor's Rating Services (S&P) updated Fingrid Oyj's credit ratings on
21 September. The credit ratings remained unchanged. The long-term credit rating
is 'A+' and the short-term rating is 'A-1'. The outlook is stable.
Personnel
The total personnel of the Fingrid Group averaged 261 (250) during the review
period.
Auditing
The consolidated figures in this Interim Report are unaudited.
Outlook for the remaining part of the year
The profit of the Fingrid Group for the entire year without the change in the
fair value of derivatives is expected to improve from 2009.
Board of Directors
Appendices: Tables for the interim report 1 January - 30 September 2010
Further information:
Jukka Ruusunen, President & CEO, +358 (0)30 395 5140 or
+358 (0)40 593 8428
Tom Pippingsköld, CFO, +358 (0)30 395 5157 or +358 (0)40 519
5041
Appendices: Tables for the Interim Report 1 January - 30 September 2010
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| Condensed | 2010 | 2009 | Chang | 2010 | 2009 | Change | 2009 |
| consolidated | Jan-Se | Jan-Se | e | Jul-Se | Jul-Se | | Jan-Dec |
| statement of | p | p | | p | p | | |
| comprehensive | | | | | | | |
| income, | | | | | | | |
| million euros | | | | | | | |
--------------------------------------------------------------------------------
| Revenue | 318.3 | 254.5 | 63.8 | 85.6 | 70.8 | 14.8 | 358.9 |
--------------------------------------------------------------------------------
| Other | 2.6 | 1.4 | 1.2 | 0.5 | 0.5 | 0.1 | 2.2 |
| operating | | | | | | | |
| income | | | | | | | |
--------------------------------------------------------------------------------
| Depreciation | -49.9 | -48.2 | -1.7 | -16.6 | -15.9 | -0.7 | -64.6 |
| and | | | | | | | |
| amortisation | | | | | | | |
| expense | | | | | | | |
--------------------------------------------------------------------------------
| Operating | -219.7 | -173.2 | -46.6 | -65.0 | -55.3 | -9.7 | -245.8 |
| expenses | | | | | | | |
--------------------------------------------------------------------------------
| Operating | 51.3 | 34.5 | 16.8 | 4.5 | 0.1 | 4.4 | 50.8 |
| profit | | | | | | | |
--------------------------------------------------------------------------------
| Finance | -9.6 | -14.5 | 4.9 | -2.3 | -5.8 | 3.5 | -17.8 |
| income and | | | | | | | |
| costs | | | | | | | |
--------------------------------------------------------------------------------
| Portion of | 0.2 | 0.2 | 0.0 | 0.0 | 0.0 | 0.1 | 0.3 |
| profit of | | | | | | | |
| associated | | | | | | | |
| companies | | | | | | | |
--------------------------------------------------------------------------------
| Profit before | 41.9 | 20.2 | 21.7 | 2.3 | -5.7 | 7.9 | 33.2 |
| taxes | | | | | | | |
--------------------------------------------------------------------------------
| Income taxes | -10.9 | -5.2 | -5.6 | -0.6 | 1.5 | -2.1 | -8.6 |
--------------------------------------------------------------------------------
| Profit for | 31.1 | 15.0 | 16.1 | 1.7 | -4.2 | 5.9 | 24.7 |
| the period | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other | | | | | | | |
| comprehensive | | | | | | | |
| income | | | | | | | |
--------------------------------------------------------------------------------
| Cash flow | 7.9 | -4.3 | 12.2 | 1.5 | -7.5 | 9.0 | 11.8 |
| hedges | | | | | | | |
--------------------------------------------------------------------------------
| Translation | 0.1 | 0.4 | -0.3 | 0.0 | 0.2 | -0.2 | 0.5 |
| reserve | | | | | | | |
--------------------------------------------------------------------------------
| Available-for | | | | | | | 0.0 |
| -sale | | | | | | | |
| financial | | | | | | | |
| assets | | | | | | | |
--------------------------------------------------------------------------------
| Total | 39.1 | 11.1 | 28.0 | 3.2 | -11.5 | 14.7 | 36.9 |
| comprehensive | | | | | | | |
| income for | | | | | | | |
| the year | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit | | | | | | | |
| attributable | | | | | | | |
| to: | | | | | | | |
--------------------------------------------------------------------------------
| Equity | 31.1 | 15.0 | 16.1 | 1.7 | -4.2 | 5.9 | 24.7 |
| holders of | | | | | | | |
| the company | | | | | | | |
--------------------------------------------------------------------------------
| Total | | | | | | | |
| comprehensive | | | | | | | |
| income | | | | | | | |
| attributable | | | | | | | |
| to: | | | | | | | |
--------------------------------------------------------------------------------
| Equity | 39.1 | 11.1 | 28.0 | 3.2 | -11.5 | 14.7 | 36.9 |
| holders of | | | | | | | |
| the company | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per | 9 344 | 4 517 | 4 828 | 512 | -1 257 | 1 769 | 7 417 |
| share | | | | | | | |
| (euros)* | | | | | | | |
| belonging to | | | | | | | |
| the owners of | | | | | | | |
| the parent | | | | | | | |
| company, | | | | | | | |
| calculated | | | | | | | |
| from profit | | | | | | | |
--------------------------------------------------------------------------------
| * no dilution | | | | | | | |
| effect | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Condensed consolidated balance | 2010 | 2009 | Change | 2009 |
| sheet, million euros | 30 Sep | 30 Sep | | 31 Dec |
--------------------------------------------------------------------------------
| ASSETS | | | | |
--------------------------------------------------------------------------------
| Non-current assets | | | | |
--------------------------------------------------------------------------------
| Goodwill | 87.9 | 87.9 | 0.0 | 87.9 |
--------------------------------------------------------------------------------
| Intangible assets | 89.6 | 85.9 | 3.7 | 88.0 |
--------------------------------------------------------------------------------
| Property, plant and equipment | 1 217.7 | 1 152.5 | 65.2 | 1 181.1 |
--------------------------------------------------------------------------------
| Investments | 7.8 | 7.3 | 0.5 | 7.4 |
--------------------------------------------------------------------------------
| Receivables | 54.8 | 21.9 | 32.8 | 18.5 |
--------------------------------------------------------------------------------
| Current assets | | | | |
--------------------------------------------------------------------------------
| Inventories | 5.7 | 5.6 | 0.1 | 5.4 |
--------------------------------------------------------------------------------
| Receivables | 39.8 | 31.4 | 8.4 | 56.3 |
--------------------------------------------------------------------------------
| Financial assets recognised in | 201.7 | 199.5 | 2.2 | 199.8 |
| income statement at fair value | | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 0.2 | 4.8 | -4.6 | 4.1 |
--------------------------------------------------------------------------------
| Total assets | 1 705.2 | 1 596.9 | 108.3 | 1 648.6 |
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY AND | | | | |
| LIABILITIES | | | | |
--------------------------------------------------------------------------------
| Shareholders' equity belonging | | | | |
| to the owners of the parent | | | | |
| company | | | | |
--------------------------------------------------------------------------------
| Shareholders' equity | 480.2 | 422.0 | 58.2 | 447.8 |
--------------------------------------------------------------------------------
| Non-current liabilities | | | | |
--------------------------------------------------------------------------------
| Non-current interest-bearing | 697.1 | 627.4 | 69.7 | 685.4 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Other non-current liabilities | 145.0 | 158.0 | -13.0 | 141.5 |
--------------------------------------------------------------------------------
| Current liabilities | | | | |
--------------------------------------------------------------------------------
| Current interest-bearing | 344.3 | 349.9 | -5.6 | 316.0 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Trade and other payables | 38.7 | 39.6 | -0.9 | 57.9 |
--------------------------------------------------------------------------------
| Total shareholders' equity and | 1 705.2 | 1 596.9 | 108.3 | 1 648.6 |
| liabilities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Key indicators, million euros | 2010 | 2009 | 2009 |
| | Jan -Sep | Jan - Sep | Jan - Dec |
--------------------------------------------------------------------------------
| Revenue | 318.3 | 254.5 | 358.9 |
--------------------------------------------------------------------------------
| Capital expenditure, gross | 87.4 | 88.1 | 135.6 |
--------------------------------------------------------------------------------
| - % of revenue | 27.5 | 34.6 | 37.8 |
--------------------------------------------------------------------------------
| Research and development expenses | 0.9 | 0.8 | 1.3 |
--------------------------------------------------------------------------------
| - % of revenue | 0.3 | 0.3 | 0.4 |
--------------------------------------------------------------------------------
| Personnel, average | 261 | 250 | 251 |
--------------------------------------------------------------------------------
| Operating profit | 51.3 | 34.5 | 50.8 |
--------------------------------------------------------------------------------
| - % of revenue | 16.1 | 13.6 | 14.1 |
--------------------------------------------------------------------------------
| Profit before taxes | 41.9 | 20.2 | 33.2 |
--------------------------------------------------------------------------------
| - % of revenue | 13.2 | 7.9 | 9.3 |
--------------------------------------------------------------------------------
| Interest bearing liabilities, net* | 839.4 | 773.0 | 797.5 |
--------------------------------------------------------------------------------
| Equity ratio, %* | 28.3 | 26.4 | 27.2 |
--------------------------------------------------------------------------------
| Shareholders' equity, million | 480.2 | 422.0 | 447.8 |
| euros* | | | |
--------------------------------------------------------------------------------
| Equity per share, euros* | 144 407 | 126 910 | 134 676 |
--------------------------------------------------------------------------------
| Earnings per share, euros* | 9 344 | 4 517 | 7 417 |
--------------------------------------------------------------------------------
| * end of period | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Consolidated | | | | | | |
| statement of | | | | | | |
| changes in total | | | | | | |
| equity, million | | | | | | |
| euros | | | | | | |
--------------------------------------------------------------------------------
| Attributable to | Share | Share | Revalua | Transla | Retained | Total |
| equity holders of | capita | premiu | tion | tion | earnings | equity |
| the parent | l | m | reserve | reserve | | |
| company | | accoun | | | | |
| | | t | | | | |
--------------------------------------------------------------------------------
| Capital and | 55.9 | 55.9 | -23.2 | -0.4 | 329.3 | 417.6 |
| reserves | | | | | | |
| 1 Jan 2009 | | | | | | |
--------------------------------------------------------------------------------
| Comprehensive | | | | | | |
| income | | | | | | |
--------------------------------------------------------------------------------
| Profit or loss | | | | | 15.0 | 15.0 |
--------------------------------------------------------------------------------
| Other | | | | | | |
| comprehensive | | | | | | |
| income | | | | | | |
--------------------------------------------------------------------------------
| Cash flow hedges | | | -4.3 | | | -4.3 |
--------------------------------------------------------------------------------
| Translation | | | | 0.4 | | 0.4 |
| reserve | | | | | | |
--------------------------------------------------------------------------------
| Total other | | | -4.3 | 0.4 | | -4.0 |
| comprehensive | | | | | | |
| income | | | | | | |
--------------------------------------------------------------------------------
| Total | | | -4.3 | 0.4 | 15.0 | 11.1 |
| comprehensive | | | | | | |
| income | | | | | | |
--------------------------------------------------------------------------------
| Transactions with | | | | | | |
| owners | | | | | | |
--------------------------------------------------------------------------------
| Dividends | | | | | -6.7 | -6.7 |
| relating to 2008 | | | | | | |
--------------------------------------------------------------------------------
| Capital and | 55.9 | 55.9 | -27.5 | 0.0 | 337.6 | 422.0 |
| reserves | | | | | | |
| 30 Sep 2009 | | | | | | |
--------------------------------------------------------------------------------
| Comprehensive | | | | | | |
| income | | | | | | |
--------------------------------------------------------------------------------
| Profit or loss | | | | | 9.6 | 9.6 |
--------------------------------------------------------------------------------
| Other | | | | | | |
| comprehensive | | | | | | |
| income | | | | | | |
--------------------------------------------------------------------------------
| Cash flow hedges | | | 16.1 | | | 16.1 |
--------------------------------------------------------------------------------
| Translation | | | | 0.1 | | 0.1 |
| reserve | | | | | | |
--------------------------------------------------------------------------------
| Available-for-sal | | | 0.0 | | | 0.0 |
| e financial | | | | | | |
| assets | | | | | | |
--------------------------------------------------------------------------------
| Total other | | | 16.1 | 0.1 | | 16.2 |
| comprehensive | | | | | | |
| income | | | | | | |
--------------------------------------------------------------------------------
| Total | | | 16.1 | 0.1 | 9.6 | 25.8 |
| comprehensive | | | | | | |
| income | | | | | | |
--------------------------------------------------------------------------------
| Capital and | 55.9 | 55.9 | -11.4 | 0.1 | 347.3 | 447.8 |
| reserves 1 Jan | | | | | | |
| 2010 | | | | | | |
--------------------------------------------------------------------------------
| Comprehensive | | | | | | |
| income | | | | | | |
--------------------------------------------------------------------------------
| Profit or loss | | | | | 31.1 | 31.1 |
--------------------------------------------------------------------------------
| Other | | | | | | |
| comprehensive | | | | | | |
| income | | | | | | |
--------------------------------------------------------------------------------
| Cash flow hedges | | | 7.9 | | | 7.9 |
--------------------------------------------------------------------------------
| Translation | | | | 0.1 | | 0.1 |
| reserve | | | | | | |
--------------------------------------------------------------------------------
| Total other | | | 7.9 | 0.1 | | 8.0 |
| comprehensive | | | | | | |
| income | | | | | | |
--------------------------------------------------------------------------------
| Total | | | 7.9 | 0.1 | 31.1 | 39.1 |
| comprehensive | | | | | | |
| income | | | | | | |
--------------------------------------------------------------------------------
| Transactions with | | | | | | |
| owners | | | | | | |
--------------------------------------------------------------------------------
| Dividends | | | | | -6.7 | -6.7 |
| relating to 2009 | | | | | | |
--------------------------------------------------------------------------------
| Capital and | 55.9 | 55.9 | -3.5 | 0.2 | 371.6 | 480.2 |
| reserves 30 Sep | | | | | | |
| 2010 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Condensed consolidated cash flow | 2010 | 2009 | 2009 |
| statement, million euros | Jan-Sep | Jan-Sep | Jan-Dec |
--------------------------------------------------------------------------------
| Cash flow from operating activities | | | |
--------------------------------------------------------------------------------
| Profit for the financial year | 31.1 | 15.0 | 24.7 |
--------------------------------------------------------------------------------
| Adjustments | 68.1 | 65.7 | 89.2 |
--------------------------------------------------------------------------------
| Changes in working capital | 0.1 | 4.3 | -5.5 |
--------------------------------------------------------------------------------
| Impact of changes in fair value of | 0.0 | -3.1 | -3.1 |
| investments | | | |
--------------------------------------------------------------------------------
| Interests paid | -12.6 | -38.6 | -41.5 |
--------------------------------------------------------------------------------
| Interests received | 1.5 | 6.7 | 4.9 |
--------------------------------------------------------------------------------
| Taxes paid | -1.6 | -1.4 | -2.0 |
--------------------------------------------------------------------------------
| Net cash flow from operating activities | 86.6 | 48.6 | 66.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from investing activities | | | |
--------------------------------------------------------------------------------
| Purchase of property, plant and equipment | -89.6 | -86.4 | -127.6 |
--------------------------------------------------------------------------------
| Purchase of intangible assets | -3.8 | -3.9 | -6.9 |
--------------------------------------------------------------------------------
| Purchase of other assets | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Proceeds from sale of property, plant | 0.9 | 0.0 | 0.1 |
| and equipment | | | |
--------------------------------------------------------------------------------
| Dividends received | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Net cash flow from investing activities | -92.5 | -90.3 | -134.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from financing activities | | | |
--------------------------------------------------------------------------------
| Withdrawal of loans | 257.6 | 248.8 | 365.4 |
--------------------------------------------------------------------------------
| Repayment of loans | -246.9 | -202.3 | -293.4 |
--------------------------------------------------------------------------------
| Dividends paid | -6.7 | -6.7 | -6.7 |
--------------------------------------------------------------------------------
| Net cash flow from financing activities | 4.0 | 39.8 | 65.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net change in cash and cash equivalents | -1.9 | -1.8 | -2.3 |
--------------------------------------------------------------------------------
| Cash and cash equivalents 1 Jan | 203.9 | 206.1 | 206.1 |
--------------------------------------------------------------------------------
| Cash and cash equivalents 30 Sep | 202.0 | 204.3 | 203.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Derivative | 30 Sep 2010 | 30 Sep 2009 | 31 Dec 2009 |
| agreements, million | | | |
| euros | | | |
--------------------------------------------------------------------------------
| | Net | Notiona | Net | Notiona | Net | Notional |
| | fair | l value | fair | l value | fair | value |
| | value | | value | | value | |
--------------------------------------------------------------------------------
| Interest and | | | | | | |
| currency | | | | | | |
| derivatives | | | | | | |
--------------------------------------------------------------------------------
| Cross-currency | 46 | 432 | -2 | 332 | -1 | 400 |
| swaps | | | | | | |
--------------------------------------------------------------------------------
| Forward contracts | 0 | 3 | 0 | 12 | 0 | 14 |
--------------------------------------------------------------------------------
| Interest rate swaps | 0 | 241 | 1 | 155 | 0 | 191 |
--------------------------------------------------------------------------------
| Call options, | 4 | 740 | 11 | 780 | 11 | 750 |
| bought | | | | | | |
--------------------------------------------------------------------------------
| Total | 51 | 1 416 | 11 | 1 279 | 10 | 1 355 |
--------------------------------------------------------------------------------
| | Net | Volume | Net | Volume | Net | Volume |
| | fair | TWh | fair | TWh | fair | TWh |
| | value | | value | | value | |
--------------------------------------------------------------------------------
| Electricity | | | | | | |
| derivatives | | | | | | |
--------------------------------------------------------------------------------
| Electricity forward | -6 | 3.64 | -39 | 3.64 | -18 | 3.61 |
| contracts, Nord | | | | | | |
| Pool Clearing | | | | | | |
| designated as hedge | | | | | | |
| accounting | | | | | | |
--------------------------------------------------------------------------------
| Electricity forward | 0 | -0.01 | 0 | -0.01 | 0 | 0.02 |
| contracts, Nord | | | | | | |
| Pool Clearing | | | | | | |
--------------------------------------------------------------------------------
| Forward contracts | | | -1 | 0.04 | 0 | 0.02 |
| of electricity, | | | | | | |
| others | | | | | | |
--------------------------------------------------------------------------------
| Total | -6 | 3.63 | -40 | 3.67 | -18 | 3.65 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Commitments and | 30 Sep 2010 | 30 Sep 2009 | 31 Dec 2009 |
| contingencies, million | | | |
| euros | | | |
--------------------------------------------------------------------------------
| Pledges / bank balances | 0 | 4 | 1 |
--------------------------------------------------------------------------------
| Rental liabilities | 7 | 8 | 8 |
--------------------------------------------------------------------------------
| Commitment fee of | 0 | 0 | 0 |
| revolving credit | | | |
| facility | | | |
--------------------------------------------------------------------------------
| Total | 7 | 12 | 9 |
--------------------------------------------------------------------------------
| Capital commitments | 248 | 224 | 177 |
--------------------------------------------------------------------------------
| Other financial | 2 | 2 | 2 |
| liabilities | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Changes in property, | 30 Sep 2010 | 30 Sep 2009 | 31 Dec 2009 |
| plant and equipment, | | | |
| million euros | | | |
--------------------------------------------------------------------------------
| Carrying amount at | 1 181 | 1 113 | 1 113 |
| beginning of period | | | |
--------------------------------------------------------------------------------
| Increases | 84 | 85 | 129 |
--------------------------------------------------------------------------------
| Decreases | 1 | 0 | 0 |
--------------------------------------------------------------------------------
| Depreciation and | -48 | -45 | -61 |
| amortisation expense | | | |
--------------------------------------------------------------------------------
| Carrying amount at end | 1 218 | 1 153 | 1 181 |
| of period | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Related party | 30 Sep 2010 | 30 Sep 2009 | 31 Dec 2009 |
| transactions and | | | |
| balances, million euros | | | |
--------------------------------------------------------------------------------
| Sales | 83 | 65 | 91 |
--------------------------------------------------------------------------------
| Purchases | 100 | 71 | 102 |
--------------------------------------------------------------------------------
| Receivables | 6 | 4 | 9 |
--------------------------------------------------------------------------------
| Liabilities | 0 | 0 | 1 |
--------------------------------------------------------------------------------
Accounting principles. This interim report has been drawn up in accordance with
standard IAS 34, Interim Financial Reporting. In this interim report, Fingrid
has followed the same principles as in the annual financial statements for 2009.
Segment reporting. The entire business of the Fingrid Group is deemed to
comprise transmission system operation in Finland with system responsibility,
only constituting a single segment. There are no essential differences in the
risks and profitability of individual products and services. This is why segment
reporting in accordance with the IFRS 8 standard is not presented.
Corporate rearrangements. There have been no changes in the Group structure
during the period reviewed.
Seasonal fluctuation. The Group's operations are characterised by extensive
seasonal fluctuations.
General clause. Certain statements in this release concern the future and are
based on the present views of management. Due to their nature, they contain some
risk and uncertainty and are subject to changes in economy and the relevant
business.
