Financial Strategy

Fjordkraft's requirement for working capital is covered by an overdraft facility with DNB of 1,000 MNOK.  The overdraft is subject to market conditions including covenants requirement that the group's equity shall be minimum 350 MNOK. In addition DNB has security in trade receivables limited upwards to the size of the engagement. The working capital requirement may vary significantly throughout a year and between years as a consequence of variations in the price of electricity and power consumption.

Fjordkraft's long-term capital requirement is covered by either non-current liabilities or equity. 

Per. 31.12.17 Fjordkraft has no interest bearing debt. Booked equity exceeds booked non-current assets, which implies that parts of the short-term capital requirement is financed through equity.

Fjordkraft announced 28 February that a contract has been entered into for acquisition of the shares in TrønderEnergi Marked AS. The acquisition is expected to be accomplished in 2Q 2018, and is intended to be financed through a loan from DNB with five year profile. Moreover, see separate press release about the contract.