Annual report 2012 - - Rainpowerrainpower.no/filer/rainpower-annual-report-2012.pdf · • 2 • • Rainpower annual report 2012 • 3 ... Control and governor systems have been

Annual report 2012

• Rainpower annual report 2012 • 3 •• 2 •

THE YEAR2012

January• Hymatek is awarded the status of Gaselle company

(young company with solid economic growth and increasing order intake over years) 2011 by the financial newspaper Dagens Næringsliv

• Rainpower Switzerland AG is established in Rheinfelden, Switzerland

• Rainpower’s first small hydro plant in Turkey starts commercial operation at Horu HEPP Power Plant. Control and governor systems have been supplied by Hymatek

• Test production begins after the rehabilitation of Bagn Power Plant. The contract between Rainpower and Skagerak Kraft was signed in 2009

February• Norconsult measures the efficiency at Driva Power Plant,

where Rainpower has upgraded the Francis turbine. Results show efficiency above guaranteed levels

• Kaplan turbine is tested at Vattenfall’s laboratory in Älvkarlaby, Sweden, with promising results

March• Agder Energi announces its intention to order a second

Storm turbine after the delivery of the first in the autumn of 2011. The new turbine will be installed in Skarg power station

• Full test operation of Svartisen A1 begins, to the satisfaction of Statkraft, who orders further runners

april• Rainpower receives contracts from GCZ in Peru for four

vertical Pelton turbines for the power stations at Runatullo II and III

May• Rainpower receives two new contracts for small hydro in

Turkey for the power stations at Cakmak 1, Cakmak 11 and Sogutlu HEPP

• Cost-cutting measures are implemented, including a reduction in the number of administrative staff

June• The upgraded turbine at Haaverstad power station shows

efficiency above the level guaranteed by Rainpower

July• E-CO Energi measures the efficiency at Bagn power station,

where Rainpower has upgraded two Francis turbines; results are above the guarantee level

• The company receives an injection of 10 million kroner of new equity from the owner

• Several operational companies in Norway are merged into Rainpower Norge AS to achieve efficiency improvements in project implementation and deliveries together with cost reductions

SepteMber• Rainpower receives an upgrade contract for Røldal-Suldal • Rainpower Hymatek enters an agreement with Arendals

Fossekompani for delivery of new turbine governors for Bøylefoss Power Plant

OctOber• Rainpower enters an agreement with Kraftwerke Hinterrhein

in Switzerland for the refurbishment and upgrading of three Francis turbines at Ferrera Power Plant

nOveMber• Rainpower and Statkraft enter an agreement for the

supply of turbine equipment for Nedre Røssåga A7 power station

• Efficiency is measured at the Binga plant in the Philippines, owned by SN Aboitiz. The level is above that guaranteed and the client is very pleased with deliveries from Rainpower

• The model test for the Cheves project is approved by customer

DeceMber• Hymatek is accorded the status of Gaselle company

2012 by Dagens Næringsliv• Rainpower is awarded two new contracts in British

Columbia, Canada• The small hydro plant Draura goes into operation.

This means that all four small hydro plants supplied by Rainpower to Tussa Energi are in operation

• The comprehensive restructuring programme started in July is completed, bringing a reduction in the number of employees and the transfer of the machinery at Sørumsand to smaller premises

• A new CEO is appointed• The company receives a further 10 million kroner from

the owner• Rainpower is acquitted in the case against Andritz

in Sweden. Andritz has appealed

Cover: From the turbine laboratory in Trondheim


The CEO’s report

A TECHNOlOGY BuSINESS wITH GREAT POTENTIAl

In the autumn of 2012 I received an exciting offer which I could not refuse, when I was invited to take up the position of CEO in the hydropower technology company Rainpower. After nearly ten years in SN Power, I was very familiar with the industry and I knew the company well from a customer perspective, however, I also knew that Rainpower was facing some real challenges. This awakened my entrepreneurial instincts, and I have not regretted my decision to accept the offer.

What I encountered was, as expected, a company with significant economic and financial challenges, however, I also found a very skilled workforce with a great depth of expertise and professionalism that took me somewhat by surprise. With roots in Kværner’s production of hydropower turbines in Lodalen, a modern turbine laboratory and deeply committed and highly educated workforce, Rainpower is a world-class provider of hydropower turbines, in particular for high and medium head applications. In addition, Rainpower’s subsidiary Hymatek has developed proprietary control system and excitation technology, which has established the company as a market leader in its sector. The combination of 160 years of industrial traditions with modern state-of-the-art technological expertise is for me what constitutes Rainpower a unique company.

Today Rainpower operates in a highly competitive, international market. In addition, the company has been through a challenging period over the last couple of years. This represents a challenge which will require focus and consolidation. In order to increase our ability to convert our technological excellence into revenue, we have fine-tuned our strategy to concentrate our efforts on what we do best. Going

forward, Rainpower will focus on three business areas: turbines; service and upgrading; and control and excitation systems. These are the areas in which Rainpower is best positioned in the market and enjoys the most trust amongst our customers. A focused strategy also means that some business areas will be discontinued. As a result, Rainpower has decided to stop the development of its own proprietary generators, and instead collaborate with the best industry players when required.

The market for rehabilitation of existing hydropower plants represents a considerable business opportunity, both nationally and internationally. It has been estimated that the electricity production in Norway can be increased by approx. 10 per cent through modernizing old power stations. As an example, the upgrade project that Rainpower is implementing for E-CO Energi at Solbergfoss power station will result in a significant increase of production and profit, without any environmental impact. However, there is a need for improved regulatory and financing conditions to enable more energy companies to replace old technology.

The international markets are growing, and we have established offices in Sweden, Switzerland, North America, Latin America, China and Turkey to participate in this growth. Rainpower’s advanced tech-nology for high head applications gives us a competitive advantage in these areas. As orders from international customers are steadily increasing, we are now seeing the results of our efforts to expand internationally.

The market for control and excitation systems in Norway has shown significant growth. Hymatek has been very successful in obtaining its share of this growth, and our control systems now have a market share of around 70 per cent in Norway. We consider that increased international sale of these systems represent an interesting potential.

The future success of Rainpower is dependent on the commitment and loyalty of our staff. Through a demanding restructuring process, our staff has shown a dedication which I am very proud of. The competence and ability of our staff to accomplish challenging projects makes me optimistic about the future development prospects for Rainpower.

Above all, Rainpower depends on the continued commitment of our customers to buy our turbines, control systems and services. Large and important customers such as Statkraft, Eidsiva, E-CO, Vattenfall, E.ON, GDF Suez and others have demonstrated their trust and confidence in Rainpower in a challenging restructuring phase. We in Rainpower will prove ourselves worthy of their trust!

Nils M. HusebyChief Executive Officer

cOntentthe ceO’s report ................................................ 5

the board of Directors’ report 2012 ................... 6

this is rainpower ............................................. 10

proprietary turbine technology ........................ 14

Service and rehabilitation ................................ 18

controls ............................................................ 22

results ............................................................. 24


BOARD OF DIRECTORS’ REPORT 2012 2012 was an eventful year for Rainpower. Revenues were at an acceptable level, and the significant investment undertaken to establish offices internationally is starting to yield positive results. An increasing number of hydropower turbines utilizing Rainpower’s proprietary technology have been installed in power stations in Norway and internationally, demonstrating excellent results. In addition, the division for control and excitation systems is experiencing solid growth.

However, 2012 was also a very demanding year for Rainpower. The significant expan-sion of activities in 2010 and 2011 led to a sharp increase in the company’s operating cost and investment level, whilst the growth in order intake and earnings was not as high as expected. Rainpower decided to stop the development of proprietary generator technology and have written off the costs associated with this in 2012. In addition the company has made a considerable loss in connection with the Svartisen project. This project represented a significant challenge, which has now been resolved and the project is completed.

The Board decided in 2012 to make cost adjustments in order to strengthen competi-tiveness, and also implemented changes in the company management as well as carried out an important restructuring of the Sørumsand workshop. At the close of 2012 Rainpower started developing a focused, market-oriented strategy. The company wants to focus even more sharply on its unique advantages and strengthen competi-tiveness within these areas. Rainpower will concentrate its activities in those areas where the company has the possibility to be the best, and will minimize the use of resources in other areas.

The revised strategy for Rainpower implies that the company is focusing on and consolidating its business on a sustainable platform with three specific main areas.

• Rainpower will continue to develop its world-leading high and medium head turbine technology in international markets

• Rainpower will consolidate its strong position in the Norwegian market for control and regulating systems, and expand this business into selected new markets

• Rainpower will consolidate its position in the Norwegian service and upgrade market

The aim of the on-going reorganisation is to strengthen Rainpower’s competitive-ness within these chosen areas, maintain the company’s technology development, and improve client focus and project implementation. We want Rainpower to be characterised by flexibility, quality and punctuality, and for these to constitute the company’s competitive edge in the market.

As of 31 December 2012 the Rainpower group was in breach of loan covenants. Since this breach was identified, the company has held on-going negotiations with the bank and shareholders, and a new waiver agreement was entered into in June 2013. The new loan waiver agreement enables the group’s existing credit facilities to be maintained and for the the group to be issued with equity and liquidity. Rainpower has in the course of first quarter of 2013 implemented further actions to reduce costs, including downsizing and reduction of operating costs.

The board firmly believes that Rainpower will emerge strengthened from a challeng-ing situation for the company, and that the measures taken will improve the situation. Based on the cost reductions implemented,

we expect for the company’s operations to return to profitability. Significant invest-ments have been made in recent years, both in the development of proprietary technology and in the establishment of offices in strategically important markets internationally. Rainpower expects to be able to capitalise on this in the future, and we expect continued revenue growth.

We have great confidence in the new management of the company, and amongst the company staff we encounter a willingness to take the necessary measures as well as a strong desire to succeed. The board would like to thank all staff and colleagues for their efforts throughout the year.

OperatiOnSThe Rainpower group has a modern production plant at Sørumsand and a turbine laboratory in Trondheim. Depart-ments with responsibility for sales, engineering and engineering services are located at Kjeller and in Oslo. Service activities are based at Sørumsand and in Rauland. There are sales, engineering and project offices in Kristinehamn in Sweden. Rainpower also has an engineering and sourcing company in Hangzhou in China. In recent years Rainpower has established sales and project support companies in Lima (Peru), Istanbul (Turkey), Ontario (Canada) and Baden (Switzerland).

Rainpower’s employees have unique expertise in turbine technology. They have been involved in some of the largest and most prestigious projects in the world, such as the Three Gorges project on the Yangtze River in China, the Guri project in Venezuela and pumped storage developments, for example Tianhuangping and Yixing in China and Aurland 3 in Norway.

The company participates actively in the Energi21 programme launched by the

government in 2008 for research, develop-ment, demonstration and commercialisation of energy solutions.

the grOup’S Financial StateMentSince the 1 January 2008 Rainpower ASA has presented its consolidated financial statement in accordance with International Financial Reporting Standards (IFRS). The company financial statement for Rainpower ASA is presented according to Norwegian regulations and good accounting practice for large companies in Norway.

2012 reSultgroup: Rainpower ASA as a group had a turnover of 662.1 million NOK in 2012 (2011: 576.4 million NOK).

Operating costs were 687.0 million NOK (2011: 605.7 million NOK), of which payroll expenses constituted 234.4 million NOK (2011: 202.8 million NOK) and other operating costs 94.1 million NOK (2011: 106.3 million NOK). The operating income before depreciation and amortisation (EBIDTA) was -6.5 million NOK (2011: -15.7 million NOK). The net operating income was -25.0 million NOK (2011: -29.2 million NOK). Changes in fair value of financial assets and derivatives had an effect of 4.0 million NOK (2011: -4.7 million NOK). Profit after tax was -13.2 million NOK (2011: -26.4 million NOK).

Minority interests’ share of the annual result was 2.1 million NOK (2011: 2.7 million NOK). The group’s equity was 234.5 million NOK, of which minority interests’ share constituted 7.2 million NOK. The group’s net cash position was 49.4 million NOK (2011: 35.1 million NOK).

The group is actively developing new hydropower technology. In 2012 10.4 million NOK was capitalised as product develop-ment. The group’s research and develop-ment programme relates to development

Diderik Børsting Schnitler has extensive management experience in the oil and gas industry as Chief Executive Officer of Saga Petroleum. He also has long experience of the industry in his role as a director of Kværner ASA, where he was President of Kværner Shipbuilding and Chairman of Kværner Energy. Previously he was CEO of EB Anker Sønnak and of Kaldnes AS.

Schnitler has also held a series of public offices, including State Secretary at the Ministry of Trade and Industry and President of the Confederation of Norwegian Enterprise (NHO).

He is an experienced board member of a large number of leading companies, including Chairman of Ard Group ASA and Wilh. Wilhelmsen Holding ASA. Schnitler holds a master’s degree in Metallurgical Engineering from Norwegian University of Science and Technology (NTNU), formerly the Norwegian Institute of Technology (NTH).

DIDERIK BøRSTING SCHNITlERCHAIRmAN

Representatives of the Conservative Party visit Sørumsand

Photo: wilh. wilhelmsen


of new hydropower technology. The major part of this consists of producing and testing turbine models in the turbine laboratory in Trondheim. It also includes the development of new excitation systems and software.

The group’s total cash flow generated from operating activities was -63.0 million NOK (2011: 5.9 million NOK). The net cash flow from financing activities was 90.0 million NOK (2011: -11.5 million NOK). The net cash flow from investment activities was -12.8 million NOK (2011: -30.7 million NOK). The net change in liquidity was 14.3 million NOK (2011: -36.4 million NOK).

The group’s liquidity position was a matter of concern at the end of 2012. This was mainly due to a lower liquidity reserve, caused by the year’s earnings being lower than budgeted. The equity share was 36 per cent at the end of 2012 (2011: 35 per cent). More detailed comments can be found in the disclosures.

company: Rainpower ASA as a company had a turnover of 19.0 million NOK in 2012 (2011:31.5 million NOK). Operating costs constituted 34.0 million NOK (2011: 29.7 million NOK), of which payroll expenses constituted 15.0 million NOK (2011: 12.9 million NOK). Operating income was -15.0 million NOK (2011: 1.7 million NOK).

Profit after tax was -29.1 million NOK (2011: -0.6 million NOK). The year’s deficit is suggested covered by the transfer of 0.6 million NOK from other equity and 28.5 million NOK from the share premium account.

gOing cOncernOur financial statements have been pre- pared on a going concern basis. During 2012 and 2013 a series of measures were taken to ensure that future costs will be significantly reduced compared to 2012. Furthermore the loan agreement with the bank has been renegotiated, existing credit facilities

maintained and new equity and liquidity added to the company. Assuming a continuing stable market development for the group, the board considers that conditions for future profitable and positive earnings are greatly strengthened.

DiStributable equityThe company has no distributable equity at 31 December 2012.

Financial riSkThe group’s credit risk is considered to be low due to established customer relations and guarantees. The group’s interest- bearing debt is based on a floating interest rate and a change in interest rate will impact on net interest expenses or income. The group’s risk management policy is to hedge between 75 and 100 per cent of anticipated transactions (mainly export sales and purchase of goods) in each main currency over the life of the contract. The group’s liquidity reserve, consisting of credit facilities and cash equivalents, is monitored continuously, based on expected cash flow.

Further information about loan conditions can be found in notes 16 and 28 of the company’s accounts. Larger Norwegian customers are not credit-rated at the time of contract signing. Smaller customers and new customers are evaluated using the Dun & Bradstreet credit rating system.

Estimates and discretionary reviews are continuously evaluated and are based on past experience and other factors, including expectations of future events that are believed to be reasonable under current circumstances.

eMplOyeeSA significant restructuring of the workforce was carried out in 2012 and the beginning of 2013, mainly within operations in Norway. The Rainpower group had 312 employees at the end of 2012. Of these 241 were employed in Norway and 71 in offices abroad.Of our technical employees around half are engineers or civil engineers, some of whom have doctorates. Of the 66 operators in the workshop, almost all are skilled in metal work, welding, NDT or machine operating. The remaining employees are engaged in finance, administration and technical functions.

health, envirOnMent anD SaFetyRainpower’s health, environment and safety system (HES) is modelled on ISO 14001:2004, adapted to local working conditions. The manual combines quality assurance with health, environment and safety, because good quality assurance cannot be achieved without good working conditions and a good environment.

Safety goalsThe company has the following health and safety objectives:• injuries to people are unacceptable• management and staff will work together

to prevent risk and injury

essential environment goals• deliver environmentally friendly products

and services to our customers • comply with all laws and regulations

applicable to our field• avoid all damage to natural resources• ensure efficient use of resources in our

production facilities and our installation sites

• focus on preventive measures and continuous improvement in our nature conservation

All health, environment and safety pro-cedures are reviewed and revised every

two years and emergency drills are carried out periodically. Adverse events and injuries to people or the environment are reported and the reports are dealt with by the management team once a month.

The board has received no reports of pollution to the external environment. The group has procedures in place to ensure compliance with the current permitted level of emissions. Rainpower Norway AS has valid agreements governing EE (waste electrical and electronic products), for the return of imported electrical components. Rainpower Sørumsand Verksted AS is certified ISO 14001-compliant and has a strong focus on the environment. The workshop area has been subject to a thorough investigation and no significant contamination was found.

health and safetyThe Rainpower group works continuously wto improve HES performance and attaches great importance to risk assessment of operations and plants. Three injuries causing absence from work were recorded in 2012 (2011: 1). 15 injuries not causing absence were recorded in 2012 (2011: 20).Monitoring sick leave is a high priority for the group. Total absence in the group in

Børre Nordheim-LarsenBoard member

Helge HavskjoldBoard member

Diderik Børsting SchnitlerChairman

Nils Morten HusebyChief Executive Officer

11th June 2013

Mette KrogsrudBoard member

Marianne LieBoard member

2012 was 4.3 per cent. Short-term absence for the group (1-16 days) was 2 per cent and long-term (over 16 days) was 2.3 per cent.

genDer equalityFemale employees made up 14.5 per cent of the group’s workforce at the end of 2012. Two of the board’s five members were women.

In 2012 the company has again actively sought to increase the ratio of women through recruitment. The proportion of women in the company has increased, but the number of female applicants for available positions continues to be small.

Rainpower makes no differentiation between female and male employees in any context. Efforts to achieve a better gender balance will continue in 2013.

The company implements a fair wage policy to prevent discrimination and disparity. The company has not taken any special measures with regard to the anti-discrimination and accessibility acts, but will focus on this in future.

OwnerShipRainpower ASA is wholly controlled by Ard Group ASA.

CEO Nils m. Huseby presents Norwegian hydropower competence at the annual conference of The Confederation of Norwegian Enterprise. Photo: Per Thrana


THIS IS RAINPOwERRainpower supplies products and complete electromechanical systems for large and small hydropower plants. Our main areas are hydropower turbines, service and upgrading and excitation and governor systems. Rainpower is an internationally recognized supplier of technology for the production of clean, renewable energy.

Rainpower’s range of products includes total solutions for new power installations and equipment for the upgrading and refurbishment of existing plants. Rainpower is a leading supplier of control and governor systems with a market share of 70 per cent domestically and a strategy of international expansion.

In order to supply complete electromechanical installations, we work with accredited international suppliers of generators, electrical systems and automation and with local installation companies.

Rainpower covers the whole value chain from the development of technological solutions to the commissioning of hydropower plants. The company’s activity is focussed on product development, engineering services and production of turbines and electromechanical system solutions for the production of renewable energy. We have extensive experience of managing large and small hydropower projects nationally and internationally.

a cOMpany in the arD grOupRainpower is part of the Norwegian Ard Group (formerly NLI). Ard is a privately owned investment company with interests in hydroelectric power and renewable energy, the oil and gas industry, land-based projects, property, business support, health foods and fishing gear.Since its origins in 1946, Ard has

expanded substantially in terms of turnover, scope and areas of expertise. Today the group has almost 1,700 employees in 12 countries. In 2007 the company (NLI) acquired GE’s hydropower activities in Norway and established Rainpower to maintain and advance Norway’s unique hydropower expertise, developed over generations.

with rOOtS in kværner…Rainpower represents more than 160 years of Norwegian hydropower expertise and is continuing a proud industrial history dating back to Kværner’s first turbine, produced in Norway in 1870. Our employees have worked on projects such as Yixing in China, Guri power station in Venezuela, the power stations Three Gorges and Tianhuangping in China, as well as large power plants in Norway, such as Aurland and Svartisen.

When Rainpower was established, the strategy was clear from day one. We would develop our own turbines with a techno-logy that could be marketed and sold all over the world. So far we have dedicated nearly 14 million dollar to product development and today we have world-class proprietary turbines.

…nebb, abb anD alStOMTurbine governors, voltage governors and excitations systems were developed and manufactured by NEBB, ABB and Alstom. In a merger of ABB’s and Alstom’s

hydropower operations, much of the product development was moved out of Norway. In 2003 a group consisting of the employees in Alstom’s governor business set up their own company, Hymatek, which has been part of the Rainpower Group since 2008.

OrganiSatiOnRainpower has a modern plant for manufacture and service at Sørumsand and a turbine laboratory in Trondheim both in Norway. Departments responsible for sales, design and engineering services are at Kjeller, and Hymatek’s development and production of control and governor systems is based in Oslo. Outside Norway Rainpower also has a design, engineering

and sourcing company in Hangzhou in China. The office will expand to pursue sales and project activities in the local market. Sales and project offices have been set up in Kristinehamn in Sweden, Lima in Peru, Istanbul in Turkey, Ontario in Canada and Baden in Switzerland.

Our Main MarketSRainpower originally focussed on the Norwegian market and on the European market for high head turbine solutions. As it expanded, it was natural to do so primarily into markets with similar topography. For this reason Turkey appeared to be an interesting market. In 2010 Rainpower was awarded significant

contracts in Peru and this led to an undertaking in South America with focus on Peru and Latin-America.

Another important criterion for the company’s market position is based on technology for the upgrading of old plants. An emphasis especially on Europe and North America has led to setting up in Sweden, Switzerland and Canada.

When Rainpower first enters a market, it wishes to offer the whole portfolio in this market. This has resulted in new markets outside Norway for both small hydro and control and governor systems.

rainpOwer wantS tO be lOcalRainpower’s aim is to be local in those markets in which the company operates. The starting point is first-class technology, and through understanding of local conditions, the company adapts to the standards and rules that apply in that particular market. Value creation is localised through use of local workshops and installation companies. Rainpower’s offices are constantly being expanded with employees who have undergone their education or who have gained experience in the region where the company operates. In this way we combine advanced techno-logy with local understanding of culture and project implementation.

From the workshop at Sørumsand

The Aslancik project


the Market in nOrwayNorway is our home market and we will continue to consolidate our strong market position here. The common certificate market between Norway and Sweden will stimulate increased investment in hydropower in Norway for the next eight to ten years. Norway is one of the world’s biggest producers of hydropower and there continues to be investment in new plants. Some of these are large, but many are also small hydro.

In addition Rainpower is focussing on the significant and growing service and upgrade market. We are well positioned with excellent reference plants and model tests for the whole range of turbine types. Since Rainpower’s establishment we have renewed focus on this area. Our clear goal is to be the preferred and leading supplier for the rehabilitation and upgrading of hydropower stations.

Over the last few years Rainpower has gained a firm foothold in the upgrading and service market. Clients have demon-strated their trust in us and we have delivered projects of high quality and with short downtimes.

the internatiOnal MarketSwedenRainpower was set up in Sweden in 2010, when the office in Kristinehamn opened. The focus for our business in Sweden is mainly on the service and upgrading of existing hydropower plants. Just as in Norway, we expect a significant level of activity over the coming years as a result of the common certificate market. In addition Rainpower set up an office in Västerås, in conjunction with expansion of

generator development. However, this office will be closed following the decision in 2013 not to pursue this activity.

SwitzerlandRainpower has had a presence in Switzer-land since 2008 through projects. Just as in Norway, Switzerland has exploited large parts of its hydropower resources. The topography resembles that of Norway, and Rainpower has extensive experience of the type of hydropower technology this topography demands. At present there is around 15 GW installed capacity in the country and further developments are planned. Rainpower was recently awarded a contract for two new 10.5 MW Pelton turbines from Romande Energie. They will replace old turbines in Les Farettes power station. The orders will further strengthen Rainpower’s position in Switzerland, a demanding market where high quality is valued.

north americaWe set up in Canada in 2011 to promote Rainpower’s technology and services linked to new hydropower stations and the upgrading of existing plants in western Canada and the USA. Rainpower’s Pelton solutions are particularly well suited to this market.

In the service market our focus is on delivery of new runners and the upgrading of control systems in both Canada and the USA. The aim is to bring our core techno-logy, including for example turbines and valves, to the North American market and develop local production in partnership with workshops and generator suppliers. Thus we will ensure a high level of local content in our deliveries.

Our first projects since set-up are the Jamie Creek and Skookum projects in British Columbia, Canada, where we will deliver two Rainpower Blizzard Pelton turbines to each of the plants.

latin americaOn the basis of the potential we could see in the Latin American market and the contracts linked to the Quitaracsa and Cheves power stations in Peru, in 2010 we established an office in Lima, Peru, to cover the whole of the Latin America, focussing on the Andes region. Many of the countries in this region have a topography for which Rainpower’s technology is optimal. This applies particularly to Francis and Pelton turbines for middle and high head. Our employees’ experience in Kværner and GE has also been invalu-able in the implementation of complex projects in Latin America.

The market for large and small power stations in Latin America is enormous, and in many of the countries there has been little investment in hydropower over recent years. There is therefore also a large market for service and upgrading of existing power stations.

chinaRainpower’s well-established operation in China – Rainpower Hangzhou – will primarily carry out design engineering and purchasing support for other parts of Rainpower. The engineering department’s main responsibility in Hangzhou is to create the drawings for the manufacture of Rainpower’s products as well as procurement of components from Chinese subcontractors. Our Chinese engineers have in-depth knowledge of Rainpower’s

solutions and design criteria for both turbines and valves. The concept is developed in Norway with engineers from China present in the last phase. Rainpower’s Chinese engineers have an important role in connection with quality control of products supplied from China and often participate in the suppliers’ final tests.

We have also opened a sales office in Hangzhou. Our predecessor, Kværner, supplied a large number of turbines and valves in China and built a good reputation in the country. Rainpower has developed technology well suited to this market.

turkeyStrong economic growth means that Turkey requires more energy and it looks as though the country will be one of the most dynamic hydropower markets in Europe over the next few years. A liberal market combined with investor-friendly policies has led to many investors, including Norwegians, considering the development of Turkish hydropower.

Rainpower has experienced great success in Turkey. We have won contracts for both large and small hydro. In 2012 we were awarded contracts for complete electro-mechanical systems for four vertical Pelton turbines and three horizontal Francis turbines for power stations Cakmak I, Cakmak II and Sogutlu HEPP.

Rainpower is about to implement one of its largest international projects in Turkey. We will supply two complete new vertical Rainpower Storm Francis turbines of 60 MW for the Aslancik HEPP power station.

prOJect iMpleMentatiOnRainpower is a total supplier of electro-mechanical equipment for both large and small hydro. We have a large geographical catchment area with tough competition in all markets and segments. Demands on the organisation vary greatly from the size of projects to geography, cooperation with international or local suppliers and other circumstances. These variable framework conditions place high demands on project management and project implementation.

“ Norway is one of the world’s biggest producers of hydropower and there continues to be investment in new plants.”

Rainpower has therefore developed a flexible implementation model and we have emphasised broad expertise within project management. This training has produced good results and a platform for growth.

Rainpower believes that proximity to clients is essential for successful implementation of projects. In 2012 we won important contracts in Switzerland, Peru and Canada. We have chosen to position project leadership close to customer and development, in order to follow projects closely. For that reason we have set up sales and project support offices in these countries.

The Aslancik project


PROPRIETARYTuRBINE TECHNOlOGY

Rainpower is a relatively young supplier of hydropower technology, just a little over five years old. But the company has a

long and rich history in hydropower. Our roots date back to 1853 when Kværner Brug was established in lodalen in Oslo, Norway

and began work with hydropower technology. when Rainpower was set up in the autumn of 2007, our employees had generations of experience and expertise. From day one our strategy was clear:

we would develop proprietary turbines with leading technology that could be marketed and sold all over the world.

DevelOpMent OF new turbineSCentral to our work of developing proprietary turbine technology has been the establishment of a universal design philosophy, consistent over the entire relevant turbine class. We know from experience that previous references and design input have constrained new ways of thinking to a certain extent and inhibited the full potential of new design. Our technical acumen has challenged established truths and presented new answers and a new design philosophy.

Rainpower’s turbine laboratory, built in 1985, has played a large and important role in the development of turbine design.Five years after it began, Rainpower has already advanced a long way in the development of new technology. A new

generation of Rainpower turbines with world-class performance has been introduced to the market.

the turbine labOratOry in trOnDheiMRainpower’s turbine laboratory in Trond-heim has a central role in the testing and development of new turbines. There is a direct correlation between the excellent results from the laboratory and the high levels of expertise of the staff and their long experience within hydropower technology. The technical equipment in the laboratory is excellent and Rainpower is proud of its world-class laboratory.

Without exception, feedback from clients during final model tests has been wholly positive, regarding both the quality of the

tests themselves and their implementation. The turbine laboratory has received visits from several delegations from both Norway and abroad and in such situations has been a vital marketing tool for Rainpower technology.

DynaMic in runnerS – a cOOperative DevelOpMent between e-cO, StatkraFt anD rainpOwerNorway has been a pioneer in the development of hydropower stations for high head. This is, of course, related to our country’s natural conditions, and reservoir power plants have been central to Norwegian hydropower production. In the development of Francis turbines for high head application, the design of runners in the turbines has been the key to the exploitation of higher waterfalls in increasingly large generators. The boundaries have constantly been moved forward.

The growth of large high head power plants with Francis turbines accelerated in the 60s and since that time dynamic stress and related cases of disruption have been a recurrent problem. The challenge has been to fully understand the dynamic characteristics in the construction and their interaction with water flow. All recognised suppliers of Francis turbines for high head have had difficulties with runners.

Against this background, Rainpower has entered a partnership with Statkraft and E-CO, both of whom have a significant number of generating units with Francis turbines for high head, in order to develop methods for understanding the dynamic better. The development programme includes numerical analyses of dynamic load and generator response, as well as measurement programmes to verify the analyses.

Cavitation from Svartisen

From the turbine laboratory in Trondheim


The Cheves project in Peru

The Quitaracsa project in Peru

This work aims to improve design methods so that in future it will be possible to eliminate errors and disruption caused by adverse dynamic in the construction.

FranciS turbineSRainpower’s aim has been to supply a new generation of hydropower turbines built on proven technology and long experience. One of the new turbines we have developed is Rainpower Storm, a Francis turbine for low and medium head. With this turbine class we have brought performance to a new level. Targeted work has given us efficiency levels 0.5 to 1.5 percent higher today than they were 15 years ago, when Kværner patented the X-blade design for the world’s largest power station, the Three Gorges on the Yangtze River in China. Efficiency measurements have been taken for power stations such as Binga, Bjelland, Haaverstad, Bagn, Solbergfoss and Martigny-Bourg, and the turbines have strengthened their competitiveness in this area.

Rainpower is also about to develop a new generation of Francis turbines for high head; Rainpower Hurricane. Laboratory tests for the first reference model were promising. Measurements made in connection with the turbine for the Svartisen project were higher than expected. The Driva turbine has also measured efficiency beyond the level we guaranteed.

peltOn turbineSPelton turbines are best suited to high head and low flow rate and are most often used in places with a head of more than 300 metres. Rainpower has developed a series of turbines; Rainpower Blizzard, with world-class performance. Indications of this include model tests made in connection with the Cheves project in Peru. All guarantees have been fulfilled with a good margin. Two new types of Pelton turbines are ready for marketing.

kaplan turbineSRainpower is developing Kaplan turbines. The new technology goes by the name of

Rainpower Gale. The hydraulic design is based fully on Rainpower’s design philosophy for Kaplan turbines and all components are optimised using CFD to enable us to deliver technology of the highest quality in all essential operating respects. Model tests were carried out in Vattenfall’s hydraulic research laboratory in Älvkarlaby in Sweden early in 2012. Performance is documented and the turbine type is ready for marketing.

reverSible puMp turbineSFor heads of between 50 and 700 metres, Rainpower can supply tailor-made pump turbines. This type of power station is the most economic and flexible method of storing large amounts of excess energy today. We have started development work on proprietary technology for pump turbines. It will be marketed under the name of Rainpower Tornado.

current prOJectSenersur’s power station quitaracsaThe Quitaracsa project was Rainpower’s first assignment in Peru. We will deliver

two Rainpower Blizzard Pelton turbines of 56 MW with control valves and two 66 MVA generators with associated equipment.

Rainpower leads a consortium and with the Italian company STE Energy, we will supply all electromechanical equipment to the power station, dam and waterway. The client is Enersur – Energia del Sur SA, a company in the GDF SUEZ Group.

Installation of the turbine will start in July this year. The first milestone was installation of the cranes for the power station, which took place in May. All equipment to be supplied by Rainpower is produced and sent according to the agreement.

Sn power’s power station chevesEmpresa de Generatión Eléctrica Cheves S.A. (SN Power Peru) has given Rainpower the task of delivering equipment to the power station Cheves, situated northeast of Lima. This includes project manage-ment, design, engineering, manufacturing and installation of two 87 MW Rainpower Blizzard Pelton turbines with runners, two spherical valves, two turbines governors and Hymatek excitation equipment. In addition Rainpower will supply the water cooling systems and other mechanical equipment.

Rainpower is collaborating on this project with ABB in Canada and with the French company Jeumont Electric, who is supplying generators to the plant. Model tests for the Cheves project have been carried out with the client present in the turbine laboratory in Trondheim, and all guarantees have been fulfilled. The model shows world-class values.

The first milestone in the project was the installation of cranes for the power station in August last year. Work on installing the turbines will start in July this year. All equipment to be supplied by Rainpower is produced and sent according to plan.

new projects in canadaRainpower has been awarded two contracts in British Columbia, Canada:

Jamie creekIn collaboration with a local partner, Rainpower will deliver a “water-to-wire” solution with two turbine and generator sets and auxiliary mechanical equipment.

The turbines are based on Rainpower’s Blizzard design and have a total output of 22 MW.

Construction of the power station Jamie Creek is underway and will be completed early in 2014. The project has been developed in collaboration with The St’át’imc Nation. The client is Boralex, a power producer with a core business dedicated to development and operation of renewable energy power stations. The power station has a 40-year purchase agreement with BC Hydro.

Skookum creekRainpower has been commissioned to supply two Rainpower Blizzard Pelton turbines of 25 MW with associated generator and mechanical equipment. Construction of the plant is underway and power production is planned to start in late 2013. The client is Sea to Sky Power Corporation, a wholly owned subsidiary of Run of River Power, a prominent developer of renewable clean energy projects in British Columbia.

SMall hyDrO in nOrwayThe remaining potential for small hydro in Norway is estimated by Norway’s Water Resources and Energy Directorate (NVE) to be 25 TWh. In 2012, 8.2 TWh was produced by Norwegian small hydro.In recent years, small hydro have been on the agenda because they can contribute significantly to an increase in sustainable energy supply. The production of power from small plants such as these can also make a positive contribution to regional value creation.

Norway’s Energy Act now allows free access to the distribution network for all independent power producers, resulting in increased interest in small hydro. The introduction of green certificates from 2012 will also contribute significantly to an increase in the number of small hydro projects.

Last year NVE granted concessions for the generation of 504 GWh in small hydro and in the same year the directorate received 220 concession applications for small hydro. The large number of concessions makes the Norwegian market for small hydro one of Europe’s largest. This has led to the existence of many competitive stakeholders in the market, both national and international.

The first small hydro from Rainpower are in operation in Norway. These include Litlebø, Rekvatn, Deveggåe, Dalegjerdet, Standal and Viddal.

new SMall hyDrO in turkeyRainpower has been assigned contracts for the delivery of small hydro to the projects Cakmak I, Cakmak II and Sogutlu HEPP in Turkey. The client is TASER ELEKTRIK ÜRETIM VE INSAAT and SU-EN ELEKTRIK ÜRETIM. The contracts consist of complete electromechanical deliveries for four vertical Pelton turbines of 10 MW combined and three horizontal Francis turbines of 9 MW in total. Production at these power stations in Turkey will start during 2013. Small hydro from Rainpower are also in operation in Romania and Portugal.

FraMewOrk agreeMent with cleMenS kraFtIn 2009 Rainpower and Clemens Kraft signed a four-year framework agreement on the supply of electromechanical equipment for small hydro. The agreement has an option to extend.Clemens Kraft is a company owned by the Norwegian Church Endowment Fund. The first small hydro supplied in connection with this framework agreement was Hynna power station in Trøndelag. Following the agreement Rainpower has supplied two to three power stations to Clemens Kraft a year.


SERVICE AND REHABIlITATIONupgrading and rehabilitation projects place greater demands on the supplier in terms of implementation capacity and delivery precision. Good planning and foresight are crucial, as turbine downtime and accessibility are vital for safe and economic power production.

upgraDing anD rehabilitatiOn Operating conditions at a power station can change over time and the client’s goals for power production can change in accordance with waterway flow rate, market, prices and contingency. Downtime relative to increased efficiency or increased output can determine whether an upgrade is profitable or not.

An upgrading or rehabilitation project begins when we undertake an assessment of the state of the plant and a clarification of the client’s priorities and goals. After that we prepare an optimal design. Rainpower regards it as of the greatest importance to safeguard the turbine’s characteristics, whilst utilising the latest available technology. In this way we have a turbine which delivers the maximum possible with today’s technology, and at the same time the characteristics and reliability of the turbine are maintained. Communication with the client is important in this work, so that we have the best possible overview of the generator’s condition. A complete analysis is not possible until the generator has been dismantled, sandblasted and inspected.

Every turbine supplied by Rainpower is custom-made for the specific power station. There are a number of external conditions that influence the design and the characteristics of the turbine. Operating pattern, flow and best operating point are parameters that frequently affect the turbine’s design.

Upgrading of existing hydropower plants is largely a combination of new and old technology and getting the two to work together. A modern, new turbine in an old plant can increase efficiency by several per cent. Rainpower has highly competitive technology and has delivered successful projects with excellent efficiency levels.

the wOrkShOp at SøruMSanDRainpower’s workshop at Sørumsand has long traditions and extensive experience as a dedicated hydropower workshop and plays a central role in the service and upgrade market, particularly since all functions can be carried out under the same roof. The workshop is organised with all relevant specialities for metal work, welding, surface treatment, machining, control and assembly. This facilitates safe

and effective turbine rehabilitation, in which Rainpower can follow up and modify all processes. The proximity of technology and development, installation support, planning and project management enables us to take swift and accurate decisions in accordance with the demands that can arise in a rehabilitation project.

prODuctiOn OF cOre technOlOgyIn recent years the workshop at Sørum-sand has undergone significant changes and has again become a workshop dedicated almost purely to hydropower, both for service and production of core turbine components.

Production expertise perpetuated and advanced in the workshop is used for the rehabilitation and further development of our products. This expertise is also crucial to Rainpower’s success in establishing competitive production environments in countries with lower production costs.

Production of runners was re-launched in 2010 and so far 25 runners have been supplied from the workshop.

current prOJectSupgrade of Solbergfoss iSolberg power station, owned by E-CO Energi, is situated on the Glomma River below the end of Lake Øyeren in eastern Norway. The first generators were put into operation in 1924. The construction of the power station was completed in 1959 with 13 generators and a capacity of 108 MW. This project formed the basis for Norwegian expertise in turbine construction, and the Solbergfoss plant is now reaping the results of the vision and pioneering work of 90 years ago.

After Solbergfoss II became operational in 1985, station I was mainly used for production at times of large flow in spring, summer and autumn. The rehabilitation work started in 2004 and continued with

the overhaul of one turbine each winter. In all, seven upgrades were carried out up to 2010.

A study was initiated in 2010 to estimate the potential for growth in energy production through an increase in the general efficiency of the turbine and increased output. Analysis showed that it was possible to increase the maximum output of each generator by 1.4 MW up to a maximum of 9 MW. The efficiency of the turbines could be increased by over 3.5 per cent at the best operating point and by over 8 per cent at maximum output.

After the refurbishment of six generators, E-CO Energi decided that the old runners should be replaced with larger runners of modern design. Rainpower’s Storm turbine, a Francis turbine for low and medium head, has shown that it is ideal for power stations like Solbergfoss.

“ Every turbine supplied by Rainpower is custom-made for the specific power station.”

The Ramsele project in Sweden

Solbergfoss hydropower station. Photo: E-CO Energi


E-CO Energi has now decided to rebuild all the generators, including those upgraded recently, and where the old runner has been refitted. Based on its solution for Solbergfoss I, Rainpower got the award, and runner number two out of six was put into operation in May this year. A letter of intent has been signed for the supply of five more runners. Efficiency measurements carried out by Norconsult show that Rainpower has achieved the levels of efficiency guaranteed.

Although Solbergfoss I is only operational for part of the year, E-CO Energi’s invest-ment for some of the generators will be repaid over two to three years. When all the turbine runners have been replaced, we will provide a total gain of around 25 GWh a year and an increase in output of 15 MW. The project is a good example of how modern technology in an upgrade project can extend the life of old hydropower equip-ment, render this lengthened life profitable,

The Ramsele project in Sweden

From the workshop at Sørumsand

Signing of the Electricidade de mocambiques contract

and also provide society with a consider-able amount of new renewable energy, without negative consequences for the environment.

vattenfall’s power station vietas g1 in SwedenRainpower is about to upgrade one of Vattenfall’s largest power stations, Vietas G1. The power station is situated on the Lule River, around 300 kilometres north of Luleå. The power station Vietas G1 has a Francis turbine with a runner diameter of 5.3 metres, a head of 67 metres and an output of 163 MW. Rainpower will supply a new turbine runner of 85 tons and new guide vanes, a rebuild of the guide vane mechanism and other refurbishment of the plant. The upgrade will be completed in 2016.

e.On vattenkraft’s power station ramsele in SwedenRamsele power station was originally put into operation in 1958 with three genera-tors and an output of 157 MW. Normal production at the power station is 0.88 TWh and the head is 79.2 metres.

Rainpower has been asked to supply a new Francis runner, new guide vanes and a hydraulic generator for the power station. The contract also includes the option for another generator of the same type. The guide vanes and runners have been delivered more than a month before the contractual date, and the project is meeting targets of time, quality and budget. Commissioning of the plant is planned for the beginning of October this year.

romande energie’s power station les Farettes in SwitzerlandThe power station Les Farettes, situated 13 km southeast of Montreux in Switzer-land, was originally constructed in 1906. The station has been upgraded several times, and the existing plant was put into operation at the end of the ’60s.

In a consortium with Jeumont Electric, Rainpower will supply two new 10.5 MW Pelton turbines for a head of 359 metres, and associated generators. The plant will be completed in 2016.

electricidade de Mocambique’s power stations chicamba and MavuziA consortium comprising Cegelec, Hydrokarst and Rainpower will refurbish two complete power stations. Chicamba HPP consists of two vertical Francis turbines, each of 23 MW, for a head of 54 metres. The power station Mavuzi HPP consists of five horizontal double Francis turbines, three of 13 MW and two of 5.5 MW. The head at this station is 152 metres.

Rainpower’s delivery will include new control systems for all units, two turbines for the Mavuzi plant, new runners, guide vanes and labyrinth seal rings for all units, new turbine shafts for the Mavuzi plant, intake gates, inlet valves, pressure control valves and other equipment. The rehabili-tation work will take place on site and Rainpower is responsible for transport, disassembly, reassembly and control.

The project receives financial support from SIDA (The Swedish International

Development Cooperation Agency) and has loans from French and German banks.

the Swiss kraftwerke hinterrhein’s power station Ferrera Rainpower has been commissioned to upgrade three 63 MW Francis turbines in the Ferrera power station in Graubünden in Switzerland. The plant has highly complex machines with turbine, clutch and pump on the same shaft line. Rainpower’s delivery will include runners, guide vanes, high pressure oil system and clutches. Corrosion protection, disassembly and reassembly will be carried out by a Swiss company. Parts that are not to be replaced will be refurbished at a workshop in Switzerland. The project is already underway and will be completed in 2016.

trønderenergi’s power station SvorkmoSvorkmo power station is situated on the Orkla River in Sør-Trøndelag county in Norway, and is owned by TrønderEnergi. The power station, which went into operation in 1983, has a mean annual production of 270 GWh and an installed capacity of 54 MW in two Francis turbines. The head is 99 metres. The turbines for the power station were supplied by Kværner.

In 2012 Rainpower received an order to implement a complete revision of turbines 1 and 2 at the power station. This included engineering, production, inspection, revision and complete assembly and commissioning with necessary tests.

The first turbine is now in full operation after refurbishment. The next is coming up in August.

The refurbishment of turbines 1 and 2 at Svorkmo power station is a typical service project in which the aim is to restore the turbine to its original condition. As a general rule of thumb, the efficiency at this power station had been reduced by 1.3 per cent by wear and tear. The rehabilitation of turbine parts can restore the turbine to an almost new condition with original output. In addition, components that require lubricating are replaced to eliminate the use of grease, thus reducing maintenance and increasing profitability of the turbine.


CONTROlSHymatek supplies excitation systems for generators and governors for hydropower turbines. The company is a leading stakeholder today in excitation and turbine governing in Norway.

The excitation system is an electronic or power electronic unit that governs the generator’s rotor power and thereby the voltage from the generator. Put simply, excitation ensures a voltage of 230 is delivered to the end user.

The turbine governor system is an electronic or hydraulic unit that controls the turbine’s opening and thus the speed of the turbine’s revolutions and its capacity. The turbine governor ensures a frequency of 50 Hz to the end user.

Hymatek has had significant growth in orders in recent years and has increased its workforce correspondingly to keep pace with commissions. We view market development very positively and expect continued growth both in orders and staff.

SuiteD tO SMall anD large pOwer StatiOnSGovernor solutions from Hymatek cover all requirements, from small hydro machines to the largest and most challenging generators. The company possesses a wealth of process and product expertise and develops all the products with its own resources. Based on this expertise and knowledge, we provide swift and highly qualified technical support to all installations delivered, including deliveries from Kværner, General Electric Norway, NEBB, ABB Norway and Alstom Norway.

a Market in grOwthThere has been a significant upswing in the Norwegian market in 2012, and the upturn appears to be continuing in 2013. It is primarily in our main products, the excitation and turbine governor systems, where we see the increase, but our relatively new governor HYMAREG has a steadily growing business also.

New this year is a static version of HYMAREG. This version is suitable for machines beyond the small hydro area. At the beginning of 2013 we signed a framework agreement with the Norwegian energy company Skagerak Energi for the supply of this version of HYMAREG.

In 2012 we delivered a significant number of turbine governors and excitation systems. A substantial proportion of these went to Statkraft, Hymatek’s biggest

customer. Turbine governors were delivered to several power stations as part of the bundled contract Rainpower entered with Statkraft in 2010.

expOrt MarketHymatek is seeking to grow by establish-ing direct sales in some export markets. In 2012 our sales included a static excitation unit to Fortum in Sweden and eight turbine governors to Zambia and Tanzania. The turbine governors, which are central in terms of network regulations in these areas, replace turbine governors supplied by Kværner in the 90s.

DevelOpMent OF waterway prOtectiOnSince 2010 Rainpower has worked with the development of waterway protection. As the name suggests, this is a device to protect the waterways. Certain waterways

are at particular risk of critical levels of disturbance by inappropriate operation of the generators sharing the channel. Waterway protection will predict dangerous conditions and override the regulation of the generators so that the critical situation is averted.

During 2013 a pilot installation will be put into operation at Tonstad power station in Sirdal, in Vest-Agder county in Norway. The plan is to develop waterway protection into a commercial product.


INCOmE STATEmENT 31ST DECEmBER 2012 STATEmENT OF FINANCIAl POSITION 31st DECEmBER 2012

(All figures NOK 1,000) note 2012 2011

aSSetS

Fixed assets

Research and development 6 68,306 67,773

Other intangible assets 6 3,219 4,050

Goodwill 6 227,221 227,221

Property, plant and equipment 5 34,948 37,918

Fair value currency futures 8 1,787 1,357

Investment in associated company 14 - 1,250

Other receivables 9 213 -

total fixed assets 335,693 339,568

current assets

Inventories 11 2,493 3,141

Earned, not invoiced income 10 171,600 170,809

Accounts receivable 9 103,359 75,819

Other receivables 9 7,631 28,053

Fair value currency futures 8 9,502 703

Cash and cash equivalents 12 49,397 35,135

total current assets 343,982 313,660

tOtal aSSetS 679,675 653,228


Sales income 10 661,354 574,028

Other income 20 731 2,415

total operating income 662,085 576,444

Cost of goods sold -339,984 -283,075

Salaries and personnel costs 21 -234,384 -202,776

Depreciation and amortisation 5,6 -16,731 -13,452

Impairment of tangible and intangible assets 6 -1,804 -

Other operating costs -94,139 -106,380

total operating costs -687,042 -605,683

Operating result -24,958 -29,240

Income from investment in associated company 14 - -131

Change in fair value of financial assets and derivatives 8,22 4,047 -4,764

Impairment of financial assets 14 -1,250 -

Financial income 22 36,915 25,291

Financial costs 22 -29,009 -17,257

net financial items 10,703 -3,398

result before taxes -14,255 -32,639

Taxes 23 -1,060 -6,248

result for the year -13,195 -26,391

Other comprehensive income

Translation differences -1,824 1,062

total result for the year -15,019 -25,329

result for the year attributable to:

Non-controlling interests 2,086 2,749

Shareholders of Rainpower ASA -15,281 -29,140

total result for the year attributable to:

Non-controlling interests 1,283 3,179

Shareholders of Rainpower ASA -16,302 -28,508



equity

equity attributable to owners of the parent

Share capital 13 49,000 45,000

Share premium account 13 191,930 175,930

Retained earnings -13,642 2,648

Non-controlled interests 7,225 5,952

total equity 234,514 229,530

liabilitieS

long-term liabilities

Pensions and similar obligations 18 2,762 4,800

Deferred tax 17 8,210 11,500

Fair value currency futures 8 - 2,915

Liabilities to credit institutions 16 - -

total long-term liabilities 10,972 19,215

Short-term liabilities

Liabilities to credit institutions 16 76,401 -

Accounts payable 15 94,627 83,718

Tax payable 23 1,328 2,063

Public dues 19,640 31,350

Customer advances 10,2 75,553 99,999

Provision for project costs 10 126,675 134,644

Fair value currency futures 8 1,630 3,972

Other short-term liabilities 15 38,335 47,736

total short-term liabilities 434,189 404,483

total liabilities 445,161 423,698

tOtal equity anD liabilitieS 679,675 653,228

CASH FlOw STATEmENT 31st DECEmBER 2012


caSh FlOw FrOM Operating activitieS

Result before taxes -14,255 -32,639

Depreciation and impairment 19,790 13,452

Taxes paid -2,063 -

Difference between pension costs and payments to the scheme -2,038 70

Fair value gains on derivatives -14,486 -4,764

Net financial costs 3,584 -5,754

Profit from associated companies - 131

Changes in inventory 648 336

Changes in project accruals -9,760 -5,016

Changes in customer receivables and other receivables -7,118 -48,882

Changes in accounts payable and other short-term payables -34,646 88,931

Other non-cash items -2,630 -

caSh FlOw FrOM Operating activitieS -62,975 5,866

caSh FlOw FrOM inveStMentS

Payments for purchase of fixed assets -8,323 -9,535

Proceeds from sale of fixed assets 3,165 -

Payments for purchase of intangible assets -10,423 -23,836

Interest received 2,822 2,668

caSh FlOw FrOM inveStMentS -12,758 -30,703

caSh FlOw FrOM Financial activitieS

Interest paid -6,406 -4,946

Proceeds from issuance of ordinary shares 20,000 -

Proceeds from borrowings 76,401 -

Debt repayment - -6,600

caSh FlOw FrOM Financial activitieS 89,995 -11,546

net caSh FlOw FOr the periOD 14,261 -36,380

Opening balance cash and cash equivalents 35,136 71,519

Change in cash and cash equivalents 14,261 -36,383

cash, cash equivalents as at 31st December 49,397 35,316

cOMMentS:

Change in cash and cash equivalents which are due to calculation differences

are not specified in the cash flow statement as these are not deeemd to be significant.Børre Nordheim-LarsenBoard member

Helge HavskjoldBoard member

Diderik Børsting SchnitlerChairman

Nils Morten HusebyChief Executive Officer

29th June 2013

Mette KrogsrudBoard member

Marianne LieBoard member

STATEmENT OF FINANCIAl POSITION (CONTINuED)31st DECEmBER 2012

Rainpower ASAInstituttveien 8P O Box 144N-2027 KjellerNorwayPhone: +47 64 84 40 00Fax: +47 64 84 40 01

RAINPOWER ASAwww.rainpower.no

LEO

Documents

Annual report 2012 - - Rainpowerrainpower.no/filer/rainpower-annual-report-2012.pdf · • 2 • • Rainpower annual report 2012 • 3 ... Control and governor systems have been