|Figures in millions||2014||2013||2012|
|Result before tax||2925||1300||1322|
− Persistent low power prices puts results for our energy business under pressure. We note however with satisfaction that progressing results in other business areas such as telecom partially compensates for the low power prices. This is fully in line with the Lyse's strategy over the last fourteen years, which has been to ensure that the Group has more legs to stand on, says CEO Eimund Nygaard.
Lyse sold in 2014 51 % of the downstream portion of the LNG business in Skangass AS to Finnish Gasum OY. The sale of shares generated a gain of 726 million NOK. According to IFRS’ accounting rules a new cost on the remaining stake equivalent market value has to be established. Regulation of cost on the remaining 49 % stake resulted in 666 million NOK.
Lyse has signed long-term power sales contracts with Norwegian high power consuming industry in euros. Because of a significantly weaker Norwegian krone measured by the turn of the year, the Group lists 228 million in unrealised currency gains. After 2014, the Norwegian krone was strengthened, and a significant share of foreign exchange gains were reversed.
Low energy prices dampen underlying operations
− We have an unusually high profit because of the divestment of the LNG business area and listing of power contracts. Because of this, the fall in power prices does not become apparent in the year result. Low energy prices have given the energy business area a poorer result than normal, but we are pleased that telecom and LNG continue to improve, says CEO Eimund Nygaard.
Lyse produced 6.7 TWh of hydropower in 2014, which is 0.6 TWh higher than in 2013 and 1 TWh higher than average production. The high hydropower production was not sufficient to compensate for the continued fall in market prices for power. Market prices were 20 % lower than in 2013.
The LNG business area continues the positive trend 286,000 tonnes of LNG was delivered to customers in 2014, which corresponds to 4.2 TWh of energy.
The telecom business area had a turnover of 2,158 million. Including the share in Viken Fiber (71 %), the turnover was 2645 million compared with 2 010 million in 2013. The business area achieved an EBITDA of 607 million and an operating profit of 359 million. Including the share in Viken Fiber, EBITDA was 810 million and operating profit 383 million.