Orkuveita Reykjavíkur - Financial Statement Release

Orkuveita Reykjavikur (Reykjavik Energy) Interim Financial Statements for the period ended 30 September 2009

Orkuveita Reykjavikur´s EBITDA for the period 1.1. to 30 September 2009 was ISK
8.6 billion. Orkuveita Reykjavikur´s loss for the period ended 30 September
2009 was ISK 11.3 billion mostly due to the weakening of the Icelandic Krona by
7.7% during the period. The same period 2008 resulted in a loss of ISK 39.6
billion. 
Increased revenues in foreign currency enable the company to service its
payments related to foreign currency denominated loans despite currency
fluctuations. 
Orkuveita Reykjavikur Interim Financial Statements are in accordance with
International Financial Reporting Standards as adopted by the EU. 
Main highlights of the period ended 30 September 2009

Orkuveita Reykjavikur operations returned a loss of ISK 11.288 million for the
first three quarters of 2009. The corresponding period in 2008 resulted in a
loss of ISK 39.588 million. 
Operating revenues for the period amounted to ISK 17.960 million. Operation
revenues for the corresponding period in 2008 amounted to ISK 16.816 million. 

EBITDA of the company for the period was ISK 8.526 million and ISK 8.183
million for the corresponding period in 2008. 
Financial income and expenses were negative for the period and amounted to ISK
15.173 million. The amount for the corresponding period in 2008 was negative by
ISK 50.704 million. 
Total assets 30 September 2009 were ISK 267.255 million and were ISK 259.373
million at year-end 2008. 
Equity of the company 30 September 2009 was ISK 36.470 million and was ISK
48.359 million at year-end 2008. 
Total liabilities of the company 30 September 2009 was ISK 230.784 million
compared to ISK 211.015 million at year-end 2008. 
The equity ratio was 13.6% as at 30 September 2009 compared to 18.6% at
year-end 2008 
Other issues
The Icelandic Parliament passed changes to several Acts affecting the energy
sector in its spring session 2008, which will come into effect 1 January 2010.
These changes involve among others things that the Company must be split so
that exclusive licence operations and competitive operations will be operated
in separate entities. Preparations for these changes are being finalised. 

Prospects
In spite of turbulence on Icelandic and foreign financial markets the
operations of Orkuveita Reykjavikur is solid. The company continues to work on
the enlargement of the power plant at Hellisheiði and intends to take the 5.
phase of its energy production into use in the latter half of 2011.  20
November of this year Orkuveita Reykjavikur signed a loan agreement with the
European Investment Bank with favourable terms for half of the 5. phase and for
half of the intended power plant at Hverahlid. The construction of the
Hverahlid power plant and other power plant options will be limited by further
access to funding at acceptable terms. 

Due to uncertainty in the Icelandic economy Orkuveita Reykjavikur has reduced
its capital expenditures in the company´s budget for the year 2009. The company
has also taken actions to curtail operating costs, both regarding salary
payments and other operational expenses. 

Orkuveita Reykjavikur´s future equity position will be determined largely by
the position of the Icelandic Krona in regards to foreign currency. 

Further information gives Hjörleifur B. Kvaran, CEO Orkuveitu Reykjavikur,
tel.: +354 516 6000

Attachments:

orkuveita reykjavíkur 3q interim financial statements.pdf