Orkuveita Reykjavíkur - Financial Statement Release

Reykjavik Energy's Equity Solidifies

Reykjavik, 2014-11-24 16:36 CET (GLOBE NEWSWIRE) -- Reykjavik Energy's
(RE-Orkuveita Reykjavikur) operation returned a profit of ISK 7.9 billion
through Q3 2014 and EBIT amounted to ISK 11.3 billion. Steady repayments of
loans has improved RE's equity ratio which now stands at 31.3%. Equity has more
than doubled since year-end 2009. 

RE's interim financial statements for the first nine months of year 2014 were
approved by the Board of Directors and the Managing Director today. The
financial statements are in accordance with international financial reporting
standards. 

The Plan - Basis for Improved Equity

RE's improved equity can be traced mainly to the successful progress of The
Plan - a comprehensive set of measures implemented in Q2 2011. The results of
this more than ISK 50 million strategies are above targets and operation cost
has decreased in real terms since year 2010. Revenues, on the other hand, have
increased by more than 40% in the same period. 

In total, the Plan has returned ISK 48,2 billion of the ISK 51,3 billion
intended until year-end 2016. 

The equity of RE collapsed in years 2008 and 2009 and the equity ratio went as
low as 14%. Through improved operation results, which have been used for
repayments of loans, the equity ratio has significantly improved and is now
31.1%. Being above 30%, RE now has readier access to financial markets. 

RE's revenues decrease compared to same period 2013 because of low aluminium
price that decreases revenues from electricity sales. Considerable success has
been achieved in hedging for fluctuations in the price of aluminium, interest
rates and exchange rates by contracts with foreign and domnestic financial
institutes. 

Bjarni Bjarnason, CEO:

Reykjavik Energy's operations are in good shape and now we have reached a
milestone in improving the company's equity ratio. Thus, we have readier access
to financial markets, which is important since we still have to improve the
cash status. That enhances our readiness to meet unforeseen changes is the
company's operational environment. Improved operations, improved equity and
improved risk management are all necessary for Reykjavik Energy's ability to
carry out its basic functions; providing customers with solid utility services. 

Managers' overview

All amounts are in ISK millions at each year's price level.

Operations through Q3 2014            2010    2011    2012    2013     2014
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Revenues                            19,444  24,388  27,286  28,806   28,067
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Expenses                            -9,557  -8,910  -9,449  -9,794  -10,302
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EBITDA                               9,886  15,478  17,838  19,012   17,766
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Depreciation                        -5,936  -6,178  -6,862  -6,251   -6,510
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EBIT                                 3,950   9,300  10,976  12,762   11,256
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Result of the period                16,794  -5,344   2,580   5,796    7,879
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Cash flow statement:                                                       
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Received interest income               101      98      87     176      442
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Paid interest expense               -1,466  -2,309  -3,869  -3,448   -3,420
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Net cash from operating activities   9,827  14,118  15,572  16,934   17,885
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Working capital from operations      8,329  12,937  13,086  14,973   12,677
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         Contact:
         Bjarni Bjarnason
         CEO
         +354 516 7707

Attachments:

RE financial statements Q3 2014.pdf

Progress Report 2014Q3 .pdf