Orkuveita Reykjavíkur - Financial Statement Release

Reykjavik Energy‘s Good Operations Results Solidified

Reykjavik, 2013-05-17 13:55 CEST (GLOBE NEWSWIRE) -- Good results of Reykjavik
Energy's (RE - Orkuveita Reykjavikur) operations are becoming entrenched. EBIT
for Q1 2013 amounted to ISK 5.1 billion, but were ISK 4.9 billion for Q1 2012.
Salaries and other operating expenses for Q1 2013 decreased by 8.4% compared to
Q1 2012. Cut-backs in RE´s operations and steady income explain this stability
in RE´s performance. 

The interim consolidated financial statements for January 1 through March 31
2013 were approved by the board of directors today. The statements are in
accordance with international financial reporting standards. 

External Factors Favourable

EBITDA from RE´s operations in Q1 2013 amounted to ISK 7.3 billion, but was ISK
7.2 billion in Q1 2012. External factors affecting bottom-line result-currency
exchange rates, price of aluminium and interest rates-had a more positive
effect than in previous periods. Therefore, Q1 2013 returns a profit of ISK 4.2
billion. 

Emphasis is still on repayment of debts, but they decreased by ISK 10.5 billion
during Q1 2013. With improved EBITDA and by strictly following RE´s and it
owners' Action Plan, access to domestic and foreign financial markets has been
secured. This has given the Company a better chance to hedge itself against
fluctuations in the operations external factors; exchange rate, price of
aluminium and interest rates. 

The Action Plan

The total results of the action plan in Q1 2013 amounted to ISK 6.7 billion,
and exceed targets by ISK 700 million. All the Plan's components were on
schedule or exceeding them in Q1 2013. The Plan, which was implemented in Q2
2011, has since initiation improved RE's cash position by ISK 30.5 billion.
That is ISK 2.4 billion in excess of the initial targets. Measured from Q2
2011, all components of the Plan are on schedule except sale of assets. 

Bjarni Bjarnason, CEO:

The Company is approaching calmer waters. Important milestones have been
achieved in the last weeks and months, most importantly retrieving trust in
international financial markets. Newly made loan and hedge contracts confirm
that. 

I applaud Reykjavik Energy's staff and directors for following our Plan so
steadfastly. The action plan is now in its third year and the achievement is
beyond target in its most important aspects. All the while, we have maintained
reliable and good services as we continuously aim to provide reliable services
to our customers. 

Managers' Overview

All amounts are in ISK millions and at each period´s price level

Operations                     2008     2009     2010     2011     2012     2013
--------------------------------------------------------------------------------
Revenues                      6.079    6.541    7.422    8.693   10.571   10.650
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Expenses                    (2.679)  (3.206)  (3.189)  (3.226)  (3.386)  (3.361)
--------------------------------------------------------------------------------
EBITDA                        3.400    3.335    4.232    5.467    7.185    7.288
--------------------------------------------------------------------------------
Depreciation                (1.632)  (2.374)  (1.952)  (2.025)  (2.295)  (2.234)
--------------------------------------------------------------------------------
EBIT                          1.769      961    2.281    3.442    4.890    5.054
--------------------------------------------------------------------------------
Realised financial income   (1.921)    (916)    (191)    (431)    (786)    (272)
 and (expenses)                                                                 
--------------------------------------------------------------------------------
Result before unrealised      (152)       45    2.090    3.011    4.104    4.781
 financial income and                                                           
 (expenses)                                                                     
--------------------------------------------------------------------------------
Unrealised financial       (20.766)    1.638    8.034      876  (9.376)     (75)
 income and (expenses)                                                          
--------------------------------------------------------------------------------
Result before income tax   (20.919)    1.684   10.123    3.887  (5.271)    4.706
 according to the interim                                                       
 statements                                                                     
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Income tax                    3.676      129  (2.936)  (1.569)    1.272    (541)
--------------------------------------------------------------------------------
Result of the period       (17.243)    1.813    7.187    2.318  (3.999)    4.166
--------------------------------------------------------------------------------




         Contact:
         Mr. Bjarni Bjarnason, CEO
         + 354 516 7707

Attachments:

Orkuveita Reykjavikur Q1 financial statements 2013.pdf

The PLAN Progress Report 2013Q1.pdf