Industrial and market-orientated focus

Industrial and market-orientated focus

Hafslund’s CEO Finn Bjørn Ruyter confirms that Hafslund in the future will stand out as an energy company with a clear industrial and market-orientated profile, in which shareholdings in other companies are phased out.

For Hafslund 2011 was a year of consolidation of the company’s main activities of production and delivery of renewable energy, and construction and operation of energy infrastructure.

Organisation at the core

“In autumn 2011 we took a number of measures to organise the Group in accordance with long-term course set for the company by the board in consultation with administration,” comments Finn Bjørn Ruyter, who became Hafslund’s CEO in March 2012.

Hafslund’s organisation has changed at top level, with the result that the main businesses of production, heat, networks and markets now have clearer responsibility for the group’s business areas.

“At the same time the managers of the business areas also have responsibility for operational management for their respective businesses. This sharpens group management’s focus on operations,” explains Ruyter.

The managers of the business areas are now responsible for operational management. This will sharpen group management’s focus on operations.

Discontinued venture business

For a number of years Hafslund has maintained a significant venture portfolio, including through its role as one of the largest owners of the solar energy company REC and investments in the telecommunications industry. In recent years Venture has also been a separate business area at Hafslund.

“The discontinuation of the venture portfolio was the greatest change we made in 2011, and was a consequence of our shift in focus. This means that the shareholding in REC and the mobile network operator Network Norway were discontinued, to mention just the largest investments. The sale of shares released significant capital. These were important decisions in light of our decision to focus on our core areas,” comments Ruyter.

Industrial and market-orientated

Ruyter believes it is right for Hafslund to adopt an industrial and market-orientated focus, in line with the company’s current course.

“Hafslund’s core competences lie within energy production, energy infrastructure and market functions. Hafslund’s staff combine long-standing experience with the ability to think outside the box. Both of these attributes are equally important in a traditional industry such as ours. We also do not employ more people than we need to in order to effectively develop and operate the site portfolio and in the market areas in which we already operate. And we are now heading at full steam ahead towards the "AMS age", with all that that entails in terms of heavy investments and consequences for daily processes and routines. At the same time we have an important societal role to play, both as a producer and distributor of renewable energy.

Hafslund’s staff combine long-standing experience with the ability to think outside the box. Both of these attributes are equally important in a traditional industry such as ours.

Growth opportunities

“Recent years have seen few structural changes within the grid business. However, we are closely monitoring developments, particularly in the Oslo area with strong growth and the need for further reinforcement of the infrastructure for electricity and heat. Within power production we see opportunities to extract even more power from Glomma. At the same time we shall constantly improve and enhance our services with regard to customer products, operations and HSE,” comments Ruyter.

He points out that the energy industry is capital intensive, and that people should adopt a long-term approach to all that they do, whether constructing new power plants or making major grid investments.

“We are a listed company tasked to provide competitive annual returns for our owners over time. At the same time we are an infrastructure company and thus an important driver of all development in our region. These are important tasks that we shall consider in all our actions.