Landsnet hf. - Financial Statement Release

Landsnet´s result for the period 1 January - 30 June 2017

Strong equity position and stable operations

One of Landsnet’s busiest construction years

The interim financial statements for Landsnet for the period January- June, 2017 were published today.  The Company’s performance was as expected.

Last year, changes were made to finance and the loan portfolio was mostly converted from indexed ISK to USD which resulted in better interest rates. This is reflected in the financial statement as there have been significant changes in the currency exchange rate throughout the period, but this has had little impact on the financial statements.

Important milestones have been achieved in refinancing the Company, including improvements in the repayment of loans and long-term loans.

Investment projections have not been realised and certain projects have been delayed.  The project connecting the Þeistareykir Power Station and PCC Bakki to the main transmission system is on schedule this year, which is the largest single project the Company is currently involved in.

Main objectives in the near future include ensuring finance for projects and the completion of refinancing for an initial start-up loan.

Main points of the interim financial statement

• Earnings before interest and taxes (EBIT) amounted to 29,1 m. USD ( 3.010,8 billion ISK ) compared with 27,6 m. USD ( 2.853,2 billion ISK ) in the previous year and daily operations of the Company are stable. Landsnets hf profits were 10,5 m. USD (1.089,6 billion ISK) for the first 6 months of the year 2017, according to the income statement, compared with losses of 2,6 m. USD (273,2 billion ISK)  during the same period in 2016.  
• Total company assets amounted to 833,8 m. USD (86.160,9 billion ISK) at the end of the period compared with 770,8 m. USD (79.656,2 billion ISK)  at the end of 2016. Total debts amounted to 514,2 m. USD (53.136,5 billion ISK) at the end of the period compared with 462,4 m. USD (47.785,0 billion ISK) at the end of 2016. 
• Equity ratio was 38,3% at the end of the period compared with 40,0% at the end of the year 2016. Net assets were 319,6 m. USD (33.024,4 billion ISK) at the end of the period compared with 308,4 m. USD (31.871,2 billion ISK) at the end of 2016.
• Liquid assets are extensive and net cash amounted to 56,6 m. USD (5.845,9 billion ISK) at the end of June and net cash from operating activities amounted to 37,3 m. USD (3.852,4 billion ISK) during the period.

 

Guðmundur Ingi Ásmundsson, CEO of Landsnet:

"It is pleasing to see that the interim report shows that Landsnet's operations are stable and the Company's equity position is strong. We are on the right track, following restructuring measures that have delivered us this success. We are doing well and have set ourselves the goal of delivering stable, profitable and efficient operations. We will complete the refinancing of the Company in the near future. This year will be one of the most successful investment years in Company history, despite delays in licensing matters."

You can access the interim financial report here: https://www.landsnet.is/landsnet/um-okkur/fjarmal/arshlutareikningar/

For further information:

Gudlaug Sigurdardottir, CFO, tel. +354 563 9311, e-mail: gudlaugs@landsnet.is

ISK are shown (exchange rate USD /ISK 103.34)

 

		USD		USD		USD
Amounts are in USD thousand		1.1.-30.6.2017		1.1.-30.6.2016		1.1.-30.6.2015
Income Statement
	Operating revenue	71,504		65,350		60,997
	Operating expenses	( 42,369)		( 37,740)		( 32,423)
	Operating profit	29,135		27,610		28,574
	Net financial expenses	( 16,037)		( 31,064)		( 13,949)
	Share in net earnings of associated company	66		119		81
	Profit (loss) before income tax	13,164		( 3,335)		14,706
	Income tax	( 2,620)		691		( 2,925)
	Profit (loss)	10,544		( 2,644)		11,781

 

 

 

Amounts are in USD thousand		30.6.2017		31.12.2016		31.12.2015
Balance Sheet
	Fixed assets	757,416		735,376		709,797
	Current assets	76,345		35,441		84,813
	Total assets	833,761		770,817		794,610
	Equity	319,570		308,411		323,756
	Long-term liabilities	471,317		425,762		435,873
	Short-term liabilities	42,874		36,644		34,981
	Total equity and liabilities	833,761		770,817		794,610

 

 

 

Amounts are in USD thousand		1.1.-30.6.2017		1.1.-30.6.2016				1.1.-30.6.2015
Cash Flow
	Net cash from operating activities	37,279		26,917				24,705
	Net cash to investment activities	( 35,506)		( 15,983)				( 9,345)
	Net cash to financing activities	35,811		( 6,877)				( 55,320)
	Effect of exchange rate changes on cash	733		627				( 715)
	Cash and cash equivalents at 1 January	18,253		62,290				96,412
	Cash and cash equivalents at 30 June	56,570		66,974				55,737
Amounts are in USD thousand
Finacial ratios
		1.1.-30.6.2017			1.1.-30.6.2016			1.1.-30.6.2015
	EBITDA	42,874			41,654			39,229
		30.6.2017			31.12.2016			31.12.2015
	Equity ratio	38.3%			40.0%			40.7%

 

Attachments:

Landsnet Interim Financial Statement 300617.pdf

Announcement Landsnet - Interim Financial Statement.pdf