Norwegian power company Hafslund’s (OSE: HNA) second quarter results came out on 8th of July. The company had a solid cash flow from normal operations. Hydropower production returned to normal and sales price was up 11% in one year’s time. The float of Hafslund share is very low as city of Oslo and Fortum (OMX: FUM1V) own 53,73 and 34,10 percent of shares in Hafslund respectively.
Hafslund owns 8.93 percent of stocks in Renewable Energy Company (OSE: REC) and REC’s declining stock price has a mammoth of an effect and ate away most of the EBITDA this quarter. In the presentation to analysts in item ’Group cash flow statement’ EBITDA should read including REC or simply EBITDA as opposed to excluding . The REC investment is valued at fair value and the value impairnment charged to operating profit. As of today, REC share price has continued to decline notably.
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