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Annual report 2012

Language:
  • Nederlands
  • Engels
In millions of euros 2012 2011
     
Income 1,506 1,726
Total expenses -/- 834 -/- 866
  --------------- ---------------
Operating business result 672 860
Impairments - -/- 1,300
  --------------- ---------------
Operating result 672 -/- 440
Financial income and expenses -/- 202 -/- 159
  --------------- ---------------
Result before taxation 470 -/- 599
Taxation -/- 111 -/- 3
  --------------- ---------------
Result after taxation 359 -/- 602

Income

Income was € 220 million less than in 2011, mainly due to the settlement (of approx. € 215 million) relating to tariffs charged in the past on the basis of NMa method decisions set for GTS at the end of 2011.

Operating result

The operating result fell by approx. € 188 million, mainly due to the settlement by GTS relating to tariffs charged in the past on the basis of the new NMa method decisions. The income decline mentioned above is set off by lower costs.

Corrected figures

In millions of euros 2012 2011
     
Income 1,696 1,658
Total expenses -/- 834 -/- 854
  --------------- ---------------
Operating result 862 804
     
Net profit 501 502

In the financial summary above, the operating result is corrected for the effects of the new method decisions on earnings (2012: approx. € 215 million and 2011: approx. € 68 million), a one-off compensation received by Gasunie Deutschland, and impairments.

The corrected operating result for 2012 shows an increase of approx. € 58 million compared to 2011. The income and operating result in 2012 were also affected by the results generated by Gate terminal B.V.’s LNG terminal, which went into operation on 1 September 2011, and therefore contributed to the results for a full year for the first time in 2012. Total operating expenses (i.e., excluding depreciation and amortisation) fell by 9% compared to 2011. Total operating expenses including depreciation and amortisation fell by 2% compared to 2011. This was in part due to the results of the Efficiency Masterplan, which we started at the end of 2011 to reduce operational costs. In 2011, these expenses were also affected by a provision for clearing costs and redevelopment.

Investments

In 2012, we successfully concluded our expansion investments in the Heiligerlee nitrogen buffer and Open Season 2012. In addition, we made normal investments for maintaining our gas infrastructure. For example, we invested significantly in accelerating our activities in the context of our multi-year replacement programme.

Expectations

On the basis of current insights, the company expects income from normal business operations and result after taxation in 2013 to be at a level that is similar to 2012. It should be noted, however, that the settlement relating to tariffs charged in the past on the basis of the NMa’s method decisions will again affect results in 2013.

Funding

At year-end 2012, total interest-bearing debt amounted to € 5,209 million: an increase of € 436 million compared to year-end 2011. This increase is a result of the two public bonds that were issued in the second half of 2012. At the beginning of July, a 10-year € 500 million bond with an interest coupon of 2.625% was issued. At the end of October, a 3-year € 500 million bond with an interest coupon of 0.875% was issued. Both bonds were issued under the existing Euro Medium Term Note (EMTN) programme. In 2012, this EMTN programme was increased by € 2.5 billion to € 7.5 billion.

The bonds were issued in order to reduce the refinancing risk resulting from the redemption peak in October 2013, when the 5-year bond of originally € 1.4 billion will be redeemed. In 2012, the market circumstances for issuing new bonds were very favourable for financially stable companies such as Gasunie.

Part of the proceeds from the 10-year bond that was issued at the beginning of July, was used to purchase € 284 million of outstanding bonds that mature in 2013. Together with the proceeds from the 3-year bond that was issued at the end of October, the remaining proceeds of the 10-year bond will be used to redeem the remaining part of the aforementioned 5-year bond in October 2013. By temporarily depositing these bond proceeds, the ‘cash and cash equivalents’ balance item increased by € 840 million to € 909 million at year-end 2012. In 2012, the net debt position (interest-bearing debt minus cash) decreased by € 404 million to € 4,300 million at year-end.

In December 2012, a credit facility of € 150 million was signed with the European Investment Bank, which can be increased to € 250 million. Under this facility, Gasunie can issue long-term loans. In 2012, Gasunie did not issue any loans under this facility.

The above-mentioned funding activities are in line with the treasury policy aimed at maintaining Gasunie’s liquidity position at an adequate level. Besides the EMTN programme and the loan facility set up at the end of 2012 with the European Investment Bank, Gasunie has a Euro Commercial Paper (ECP) programme and a total of € 910 million in committed credit facilities at its disposal. Under the ECP programme, up to € 750 million in short-term debt can be raised. Of the committed credit facilities, the 5-year € 800 million stand-by credit facility that was concluded in October 2010 is the most important. During 2012, neither the ECP programme, nor the stand-by credit facility was used.

Credit ratings

In 2012, the rating agencies Standard & Poor’s and Moody’s did not adjust Gasunie’s long-term credit rating. Gasunie has an AA- long-term credit rating with a negative outlook from Standard & Poor’s and A2 with a stable outlook from Moody’s.