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Caruna continued investing in a weatherproof network - 78% of customers now covered

Caruna continued investing in a weatherproof network - 78% of customers now covered

Electricity distribution company Caruna progressed with the building of its weatherproof smart electricity network in all of its network areas from January to June. The Group invested EUR 128 million in the electricity network improvements and built more than 2,100 kilometres of low and medium voltage underground cabling network in total. The investments made during the first half of the year improved the reliability of supply for over 15,000 customers. Due to the investments, cash flow after investments remained negative by EUR 46 million. Caruna’s net sales from January to June were EUR 231 million. The loss for the reporting period was EUR 7 million.

Caruna Networks Group’s (Caruna) net sales amounted to EUR 230.5 (217.5) million, showing a growth of 6.0 percent compared to the same period last year. The total volume of electricity supplied during the reporting period was 5.2 (5.1) TWh and 1.5 (1.4) TWh in the regional network. The growth in net sales was largely attributed to increased volume of supplied electricity, particularly due to cold weather in March. Cash flow from operations increased to EUR 64 (62) million, but after investments the Group’s cash flow position remained negative by EUR 46 (68) million.  

The Group now has 78 percent of its customers covered by a weatherproof network, an increase of 10 percentage points in one yearThe Electricity Market Act requires significant improvements in the reliability of electricity supply to be carried out by the end of 2028As climate change increases the number of extreme weather phenomena, moving the electricity network underground to protect it from storms will improve the reliability of electricity supply for customers. Caruna continues to implement its programme of investments to guarantee its customers an uninterrupted supply of electricity in all situations.  

The next stage of the weatherproof network building project is to install low voltage network cables underground in urban areas. Caruna aims to lay down electricity, streetlight and fibre networks simultaneously, to ensure the installation projects cause as little disturbance to its customers as possible and to carry out renovations properly in one go. 

Small-scale production of renewable forms of energy keeps growing in popularity in our network areas. We are able to respond to an increasing number of solar energy producers by stronger and smarter underground electricity network. For example, we saw a year-on-year increase of 26 percent by the end of June in the number of solar power systems connected to Caruna’s network,” says CEO Tomi Yli-Kyyny. 

Caruna has also dedicated resources to improving customer experience. Over the spring, Caruna developed a key account management model for corporate and municipality customers, to ensure Caruna can offer even better service to its key customers. Caruna’s key account managers are responsible for the introduction of the key account management model region by region, and the first ones started in their new roles during the spring. 

“A new Development and Innovation unit will support our objective to improve customer satisfaction. We are seeking to deliver an even smoother customer service experience, while developing our service channels. One of the key objectives of our Development and Innovation unit is to respond to the needs of our transforming digital society by creating the right conditions for electric vehicles, the growing use of renewable energy and other changes,” says Tomi Yli-Kyyny. 

 

Financial key figures  

Million euro or as indicated 

H1 2018 

H1 2017 

2017 

Net sales  

230.5 

217.5 

426.4 

Operating profit  

77.7 

82.6 

145.7 

Operating profit as percentage of net sales  

33.7 

38.0  

34.2 

Profit/loss from the reporting period 

–6.8 

1.7 

28.8 

Taxes paid

2.2 

0.1 

7.1 

Cash flow after investments 

–45.6 

–68.0 

–169.9 

Interest-bearing net debt (at the end of the period) 

3,181.8 

3,035.9 

3,131.2 

 

For further information, see Caruna’s Half Yearly Report: www.caruna.fi/en/financialinformation