Download 201308060000000004_20130806 Press release Interim

TenneT Interim Financial Report first half 2013
TenneT posts solid half-year results as investment
agenda takes shape
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Investments of EUR 635 million during the first half of 2013, contributing to an increase in
underlying EBIT from EUR 168 million to EUR 237 million (+ 41 %)
Completion of Randstad 380kV South Ring in the Netherlands
Nine offshore projects under construction in German North Sea
Second partnership between TenneT and Mitsubishi Corporation signed
Arnhem, 6 August 2013 - In the first half year of 2013 TenneT posted solid financial results
arising from continuing investments in the Dutch and German electricity grids, thereby
ensuring a high reliability of electricity supply and enabling future expansion of electricity
transport capacity for the integration of renewable energy.
CEO Mel Kroon:
"Ongoing discussions both in the Netherlands and in Germany about the further development of
sustainable energy supply, have an important impact on TenneT’s investment agenda. We have
demonstrated the ability to deal with this changing landscape through a number of investment and
financing partnerships, more of which will be needed to secure a reliable and sustainable electricity
grid. We are well underway with our investment programme and we have been able to deliver
profitable growth in the process.”
Underlying and IFRS results
Statement of Income (in EUR million)
For the six month period
ended 30 June
2013
Underlying
IFRS
2012
Underlying
IFRS
Revenues
EBITDA
EBIT
Profit for the period
886
360
237
119
834
282
168
71
Statement of Financial Position
(in EUR million)
30 June 2013
Underlying
IFRS
31 December 2012
Underlying
IFRS
Total Assets
Net interest-bearing debt, adjusted
Equity
11,186
2,798
2,330
10,284
2,676
2,221
1,094
562
442
288
10,917
2,798
3,120
877
310
202
113
9,997
2,676
2,841
Senior unsecured credit ratings as of 30 June 2013t rating
2012
Long-term rating
Short-term rating
Standard & Poor’s
A– (stable outlook)
A-2
Moody’s
A3 (stable outlook)
P-2
Use of underlying financial information compared to IFRS reported figures
The underlying figures presented are based on underlying financial information. Underlying
financial information is based on the principle to recognise regulatory receivables and payables in
connection with TenneT's regulated activities whereas IFRS reported figures do not yet contain
these. Thus underlying figures include amounts which are allowed to be recouped or required to
be returned through future regulated grid tariffs. These amounts are recorded as an asset or
liability, respectively.
Increase in revenues and EBIT
TenneT’s Interim Financial Statements for the six month period ended 30 June 2013 show that
underlying revenues increased by 6% to EUR 886 million in 2013 (2012: 834 million) while
underlying EBIT increased by 41% to EUR 237 million (2012: 168 million).
Underlying EBIT increased mainly as a result of further investments in German offshore grid
connections (EUR 46 million EBIT impact) and the sale of the gas activities of APX, a majority
owned subsidiary of TenneT involved in energy exchange activities (EBIT impact of EUR 25
million)
Key events during the first half of 2013
Randstad 380kV
In May 2013 the Randstad 380kV South Ring was commissioned, a 20 km 380kV high-voltage
line. For the construction of 10 km of this new overhead line the new innovative Wintrack masts
were used, which have a slimmer design and cause narrower electromagnetic fields than
traditional electricity pylons. The remaining 10 km were realised via underground cabling. The
South Ring is part of the so-called Randstad 380kV project, a 85 km high-voltage line between the
towns of Wateringen and Beverwijk, which will result in a structural improvement of the security of
supply in this economically important region for the Netherlands.
New dedicated power spot exchange APX
On 1 March 2013 the new dedicated power spot exchange APX went live. APX remains a leading
trading platform for power spot contracts across Belgium, the Netherlands and the UK. This is the
result of the split of APX-ENDEX into a power spot and clearing entity and a derivatives and gas
spot entity. The share capital of APX is held by TenneT Holding B.V. (71%) and Elia System
Operator N.V.(29%).
Offshore grid investments in Northern Germany
As at 30 June 2013, TenneT had 2 offshore connections in operation and has another 9 offshore
connections under development in the German part of the North Sea. These essential
infrastructure projects total to a transport capacity of 6.2 gigawatt of renewable electricity. The
construction contract for the latest of these projects, DolWin3 (0.9 GW) was awarded in February.
Offshore wind farms connected to date total a capacity of approximately 0.4 GW.
Offshore investment partnerships
In April 2013, TenneT and Mitsubishi Corporation closed their second partnership with respect to
two German offshore grid connection cable projects, HelWin2 and DolWin2 in which a subsidiary
of Mitsubishi's acquired a 49% voting interest for a maximum equity investment of
EUR 336 million.
Also in April 2013, DC Nordseekabel GmbH & Co. KG, a joint venture between TenneT (50%) and
Kreditanstalt für Wiederaufbau (KfW) (50%) was established. This joint venture intends to develop,
construct and own the southern half of the Nordlink interconnector project, a subsea cable
between Germany and Norway. The remaining 50% of the project is owned by the Norwegian TSO
Statnett. A final investment decision is expected in 2014.
About TenneT
TenneT Holding B.V. is a leading electricity transmission system operator (TSO) in the Netherlands through
its subsidiary TenneT TSO B.V. and in a substantial part of Germany through its subsidiary TenneT TSO
GmbH. With over 20,000 kilometres of high-voltage lines and 36 million end users, it ranks among Europe’s
top 5 electricity transmission system operators.
The State of the Netherlands holds the entire issued share capital of TenneT Holding B.V.. TenneT’s head
office is located in Arnhem in the Netherlands. TenneT TSO GmbH’s main office is located in Bayreuth in
Germany.
Disclaimer
‘We’, ‘TenneT’, ‘TenneT Holding’, ‘the Group’, ‘the company’ or similar expressions are used in this press
release as a synonym for TenneT Holding B.V. and its subsidiaries. Parts of this press release contain
prospective information. These parts – without exceptions – may include unqualified statements on future
operating results, government measures, the impact of other regulatory measures on all activities of TenneT
as a whole, TenneT ’s shares and those of its subsidiaries and joint ventures in existing and new markets,
industrial and macro-economic trends and TenneT ’s performance in these. Such statements are preceded or
followed by or contain words such as ‘believes’, ‘expects’, ‘anticipates’ or similar expressions. These
prospective statements are based on the current assumptions concerning future activities and are subject to
known and unknown factors, and other uncertainties, many of which are beyond TenneT 's control, such that
future actual results may differ significantly from these statements. All financial information is reported in
millions of euro. As a result, rounding differences may occur. Apart from the 31 December 2012 financial
information, all financial information shown throughout this report is unaudited.
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Interim Financial Report 2013