Main activities in 2011
Overall, Hydro Power delivered higher operating profit in 2011 than in 2010. The hydropower business generally achieved a high level of production, due to the good flow of water in the Glomma River and heavy precipitation in Sauda. Operating revenues and EBITA1 amounted to NOK 1,691 million and NOK 260 million, respectively, compared with NOK 1,321 million and NOK 177 million in 2010. However, results for Borregaard’s energy business were weaker than in 2010. This was primarily due to the loss of power under the agreement with DNN industrier and the purchase of power on the market to meet delivery obligations in the first part of the year when power prices were high.
The business unit
Hydro Power consists of Borregaard’s energy operations and Orkla’s 85 % ownership interest in AS Saudefaldene. The unit has a total production capacity of 2.5 TWh. Hydro Power produces and supplies power to the Nordic power market.
* Operating profit before amortisation and other income and expenses.
1 Operating profit before amortisation and other income and expenses.