Arnhem, Monday, 31 July 2017
Stable annual result in 2010 necessary for investments of 10
billion euro in Dutch and German grid
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TenneT to invest EUR 4 to 5 billion euro in Dutch and EUR 5 to 6 billion in German
grid over the next 10 years
Net profit for shareholder rises from EUR 72 million to EUR 76 million
Impairment of EUR 134 million recorded due to changes in Dutch regulatory regime
Start of realization of essential high-voltage connection in Randstad area
Integration of German high voltage grid has positive impact on result development.
In 2010 TenneT took an important step towards the establishment of a single European energy
market by acquiring the German TSO transpower. The acquisition has had a significant impact on
the revenue of Europe’s first cross border electricity transmission operator, which showed an
increase from EUR 543 million in 2009 to EUR 7,326 million in 2010. The resale of sustainable
energy in Germany accounts for EUR 6 billion of this total, with the associated revenue stream
having a neutral impact on results. These are some of the highlights of TenneT’s Annual Report for
2010, which is published today.
Investments
During the year under review TenneT made substantial investments in a number of projects including
Randstad380, a high voltage connection between the Maasvlakte and Bleiswijk, and BritNed, an undersea cable
link between the Netherlands and the UK. The company further invested in upgrading the Dutch transmission
grid and in linking up offshore wind farms to the German transmission grid. Based on the latest insights, the total
investment in the Dutch and German grids is estimated at 9 to 11 billion euro over the next ten years. In the
Netherlands, the investment projects concern large-scale 380 kV connections in the north, west and south west
of the country with a total length of over 400 kilometres. In Germany, TenneT is investing in 7 offshore
connections that will link wind farms in the North Sea to the onshore high voltage grid. Furthermore, German
investments consist of over 500 km of necessary onshore connections, that will transport wind energy from wind
farms in the North to consumption areas in the south and west of Germany.
Operating result
TenneT’s operating result rose from EUR 135 million to EUR 160 million in 2010. The acquired German
activities were consolidated with effect from March 2010 and accounted for EUR 204 million of this increase.
Operating results in the Netherlands decreased by EUR 189 million due to an impairment of the high voltage
grids (EUR 134 million), the non recurring effect of a release from the provision for future decommissioning
costs in 2009 (EUR 63 million), and a net decrease in other expenses (EUR 8 million).
Net result
The net result grew from EUR 72 million to EUR 76 million due to an increase in the operating result amounting
to EUR 25 million. This was counterbalanced by rising finance expenses totalling EUR 14 million, and a higher
corporation tax charge of EUR 7 million.
Credit rating
Standard & Poor’s awarded TenneT a senior secured credit rating of ‘A ’, while Moody’s rated TenneT as ‘A3 /
stable’. Both credit rating agencies assessed TenneT’s outlook as stable.
TenneT CEO Mel Kroon is very pleased with how the integration process is advancing:
“In 2010 we made huge steps towards a north-west European electricity market: we created more
interconnector capacity, integrated transpower successfully and with the coupling of the markets of the Central
West European countries established the same electricity price for these countries in more than 75% of the
time. This helps in creating a level playing field and contributes to the security of electricity supplies. However, a
regulatory framework that enables TenneT to achieve an adequate rate of return for our capital providers is
essential to all future investments. This is becoming increasingly difficult in the Netherlands. In Germany, too,
we are engaged in an intensive dialogue with the Federal Network Agency in order to secure an adequate
return on our future investments. TenneT will continue talks on this with relevant authorities, as we work to build
an effective and efficient grid at the lowest possible cost.”
Note: TenneT’s full Annual Report is available at http://jaarverslag.tennet.eu
Appendix: Consolidated key figures for 2010
CONSOLIDATED KEY FINANCIAL FIGURES (all
2010
2009
2008
amounts in millions of EUR)
Turnover
7,326.0
543.4
460.3
159.8
134.5
80.9
76.2
72.1
50.7
Tangible fixed assets
4,120.7
2.417.7
1,470.0
Equity
1,300.1
727.6
665.4
Balance sheet total
7,054.4
3,570.0
2,886.4
CONSOLIDATED RATIOS
2010
2009
2008
Equity to capital
28.7%
30.1%
46.1%
7.6%
10.5%
8.0%
20.8%
19.3%
23.5%
2.4
3.9
5.5
Operating result (EBIT)
Net profit after deduction of third-party shares
Return on average equity
FFO / average debt
Interest cover ratio
TECHNICAL DATA
Circuit length (km)
Total circuit length (km)
2010
2009
2008
Germa
Netherla
Netherla
Netherla
ny
nds
nds
nds
10,752
9,119
9,009
8,691
120
282
279
246
Imports (GWh)
46,808
18,583
15,455
24,967
Exports (GWh)
40,691
12,808
10,563
9,116
No. of substations
Total number of substations
Other technical data
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.
Communication
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