Landsvirkjun - Financial Statement Release

Landsvirkjun’s results for the first six months of the year 2015

  -- Equity ratio 42.2%
  -- Profit for the period was USD 63.9 million



Key figures from the interim financial statements



  -- Operating revenues amounted to USD 215.7 million which is an increase of
     6.2% compared to the same period in 2014.



  -- EBITDA amounted to USD 169.3 million. EBITDA ratio is 78.5% of revenues,
     compared to 76.2% in the same period in 2014.



  -- Profit before unrealised financial items amounted to USD 80.0 million
     compared to USD 54.4 million in the same period in 2014 which is an
     increase of 47.1% between periods.



  -- The profit for the period was USD 63.9 million but was USD 34.5 million in
     the same period in 2014.



  -- Net liabilities decreased by USD 171.9 million from the beginning of the
     year and amounted to USD 2,018.6 million at the end of June.



  -- Cash flow from operations amounted to USD 146.4 million which is an
     increase of 28.2% compared to the same period in 2014.



Hörður Arnarson, the CEO:

“Landsvirkjun´s operations performed generally well the first half of the year
and strong cash flow enabled us to continue to decrease the net debt of
Landsvirkjun, which resulted in a decrease by USD 172 million in the period. 

There are positive signs in the interim financial statements for the first half
of the year. Key ratios are improving, the equity ratio is 42.2% compared to
39.9% at the beginning of the year and the Group´s net liabilities measured
against profit before depreciation decreases from 6.6 to 5.8. In the first half
of the year all conditions precedent were lifted  in the electricity contract
with PCC BakkiSilicon hf. Furthermore, the construction of Theistareykir power
plant commenced in the period. 

There is a great demand for electricity in Iceland, coming from diverse
industries, which are prepared to pay higher prices than before. Landsvirkjun
aims to utilize every opportunity the Company has to increase the energy
production in order to meet this interesting demand. 

However, short term, there are concerns in the external environment. Aluminium
prices have decreased considerably in the last months, which has negative
effects on Landsvirkjun´s revenues. Furthermore, inflow to Landsvirkjun's
reservoirs has been low this summer due to a late arrival of spring.”

Attachments:

Press release.pdf

Arshlutareikningur jan-juni 2015.pdf