30 September 2002 – Interim results published today by Danish utility Elsam showed profits ahead of forecasts due to firmer power prices.

Accounts for the first six months of 2002 indicate that the company is on its way to showing a result well in excess of the goals held out in prospect to the shareholders. Elsam now expects a profit for 2002 of about 600m DKK after taxes ($79.8m – about 100m DKK more than what was forecast.

During the first six months of 2002 turnover increased by 43m DKK to 2.915bn DKK compared to the same period last year. The net result for the first six months of 2002 was 238m DKK after taxes, in line with budget.

This result is to be seen in relation to the fact that Elsam, moreover, has reduced the value of its fuel storages by 100m DKK as a result of the declining fuel prices and rate of exchange of the US dollar. The price of fuel is an important part of the costs of producing heat and electricity. The costs will therefore be lower in the second six months of 2002 and at the same time the electricity prices seem to be higher than expected.

Elsam’s CEO Peter H?stgaard-Jensen said, “In the first six months the operations has generated 787 million DKK. This gives a solid foundation for the company’s vision of investing 1.5-2 billion DKK a year in international energy projects. Several interesting projects are in the melting pot, especially within the areas of wind energy and waste-to-energy, and at the same time the offshore wind turbines at Horns Rev are soon ready to produce electricity to the consumers. The good results are achieved not least due to a great and dedicated effort by our employees.”

Elsam said its rationalisation process and organisation adjustment after the merger in 2000 was still progress according to plan and a permanent improvement of the result of about 400 million DKK will be achieved by the end of 2003.

Elsam confirmed that its purchase of the German energy company E.ON’s part of Ensted Power Station in Aabenraa had been completed. The take-over will increase the production share at Elsam’s utilities by 10 per cent and thus give the consumers an even better security of supply.