Fingrid Groups's Interim Report 1 January - 30 September 2007
The Group's revenue during the review period was 234 million euros (256 million euros during the corresponding period in 2006). Revenue declined due to lower sales of balance power and decrease in grid revenues. Sales of balance power were decreased by a lower price of balance power, and grid revenues were diminished by the tariff reduction which became into force at the beginning of this year.
Operating profit without the change in the fair value of derivatives decreased to 56 million euros (68 million euros). Operating profit declined mainly because of the tariff reductions, repair costs of the sea cable damage, and rise in the purchase costs of loss energy.
The operating profit in accordance with IFRS was 68 million euros (85 million euros), which contains 12.6 million euros (17 million euros) of positive change in the fair value of electricity derivatives. Fingrid introduced hedge accounting in Group reporting for electricity derivatives as of 1 July. The Group’s positive change in the fair value of electricity derivatives totalled 12.6 million euros, of which 11.7 million euros materialised during the first six months of the year, when the change in the fair value was recorded completely in the income statement. The change in the fair value recognised in the income statement for the third quarter was 0.9 million euros, and the portion recorded in equity and deferred tax liabilities was 1.3 million euros.
The IFRS profit before taxes was 41 million euros (63 million euros). The equity ratio was 26.6 per cent (26.0 per cent) at the end of the review period.