Half-year results: TenneT is on track

• Investments in sustainable and future-proof electricity grid progressing on schedule
• Profit and turnover in line with asset growth 
• Innovations with Wintrack pylons and underground cabling in the Netherlands started
• Offshore grid in Germany opens up access to 5.000 MW of green electricity     

ARNHEM, THE NETHERLANDS, 7 SEPTEMBER 2011 –TenneT realized a stable turnover and net profit in the first six months of 2011 according to the company's consolidated half-year results which are published today. Turnover amounted to €4,655 million in the first half of 2011. Net profit was €93 million. CEO Mel Kroon: "TenneT is on track and continuing to grow steadily. We are a financially healthy company, we have a steady turnover and profit and there is a sharp watch on costs. This creates steadiness to press ahead with our investment programme towards clean, reliable and affordable electricity supplies in the Netherlands and Germany."

TenneT's business activities in Germany counted over a full six months for the first time in the period under review. Last year they counted only for four months because the results of the acquired transpower company were consolidated effective March 2010. The revenues and costs associated with transmitting renewable electricity are result-neutral in the German figures. This concerned an amount of €3,978 million in 2011 compared with €2,597 million a year earlier.

Developments in the Netherlands: construction of innovative grid extension gets underway

Over the past half year TenneT has begun expanding the electricity network in the highly urbanised western part of the Netherlands known as the Randstad so as structurally to increase security of supply. A new 85 km long 380kV electricity connection through the Randstad is being installed partly underground, which is unique in the world. This section will also includes a new type of high-voltage pylon called Wintrack, that combines a modern design with less space utilisation. The building of this new line illustrates the expansions that TenneT will carry out in the upcoming years. In total more than 400 km of new 380kV connections are going to be constructed.

Developments in Germany: contributing to sustainability

Recently, contracts are signed in Germany for the physical connection of two new North Sea wind farms. They will be the eighth and ninth offshore lines (HelWin2 and Dolwin2). This will allow TenneT to open up access to more than 5000 MW of wind energy in the German part of the North Sea, equivalent to the electricity consumption of five million households. This development reflects the steps that are being taken in North-West Europe to reduce CO2 emissions. The steps are also urgently necessary in view of the phasing out of nuclear power in Germany.

Substantial investment programme in Germany and the Netherlands

TenneT is carrying out a substantial investment programme up to 2020 to guarantee the security of supply of electricity in the Netherlands and Germany and to facilitate the sustainability of energy production. TenneT has been issuing bonds on the capital market since February 2010 to help finance these investments. Other steps were announced earlier for future investment programmes. Most of those steps have now been taken. The State of the Netherlands, TenneT's shareholder, has decided to increase the company's capital provisionally in the fourth quarter of 2011 and the first quarter of 2012. The Lower House of Parliament approved the increase as part of the Dutch government's spring financial report. Furthermore, TenneT is in final negotiation with three potential investors in taking minority shares in North Sea wind farm connections (BorWin1 and BorWin2) and following connections. This will allow TenneT the continuation of future offshore investments.

Good prospects

Mel Kroon: "TenneT has taken big steps towards enlarging and sustaining the electricity grid in North-West Europe. The construction of new 380 kV electricity lines in the Netherlands and Germany and the establishment of interconnections with countries like Denmark, the United Kingdom and Norway will significantly raise the capacity of our network. Interconnecting these markets will increase security of supply for members of the public and for companies and it will mean more stable electricity prices. We have confidence in our ability to maintain this course in the second half of 2011."

Appendix: Consolidated key figures

Disclaimer

We’, ‘TenneT’, ‘TenneT Holding’, ‘TenneT TSO’, ‘the TenneT Group’, ‘the company’ or similar expressions are used in this press release as a synonym for TenneT Holding B.V. and its subsidiaries. 

Parts of this press release contain prospective information. These parts – without exceptions – may include unqualified statements on future operating results, government measures, the impact of other regulatory measures on all activities of TenneT as a whole, TenneT’s shares and those of its subsidiaries and joint ventures in existing and new markets, industrial and macro economic trends and TenneT’s performance in these. Such statements are preceded or followed by or contain words such as ‘believes’, ‘expects’, ‘anticipates’ or similar expressions. These prospective statements are based on the current assumptions concerning future activities and are subject to known and unknown factors and other uncertainties, many of which are beyond TenneT’s control, so that future actual results may differ significantly from these statements. 

The figures stated in this press release have not been audited.

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Interim financial statements 2011 (pdf 3,01 Mb)