Orkuveita Reykjavíkur - Quarterly report

Orkuveita Reykjavikur (Reykjavik Energy) Interim Financial Statements for the period ended 31 March 2009

Orkuveita Reykjavikur profit for the  period ended 31 March 2009  was
ISK 1.8 billion. The same period 2008 resulted in a loss of ISK  17.2
billion. The company's EBITDA for the first quarter 2009 was ISK  3.3
billion. The company's equity ratio  for the first quarter was  19.0%
but was 18.6% at year-end 2008.
Orkuveita Reykjavikur liquidity position is good. 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 31 March 2009

Orkuveita Reykjavikur  operations  returned  a profit  of  ISK  1.812
million for the first  quarter of 2009.  The corresponding period  in
2008 resulted in a loss of ISK 17.243 million.

Operating revenues  for the  period amounted  to ISK  6.541  million.
Operation revenues for the corresponding  period in 2008 amounted  to
ISK 6.079 million.

EBITDA of the company  for the period was  ISK 3.335 million and  ISK
3.400 million for the corresponding period in 2008.

Financial income  and  expenses  were positive  for  the  period  and
amounted to ISK 703 million. The amount for the corresponding  period
in 2008 was negative by ISK 22.729 million.

Total assets 31  March 2009  were ISK  262.559 million  and were  ISK
259.373 million at year-end 2008.

Equity of the company  31 March 2009 was  ISK 49.971 million and  was
ISK 48.359 million at year-end 2008.

Total liabilities  of  the company  31  March 2009  was  ISK  212.588
million compared to ISK 211.015 million at year-end 2008.

The equity ratio was 19.0% as at  31 March 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 underway.


Prospects
In spite of turbulence on Icelandic and foreign financial markets the
operations of  Orkuveita  Reykjavikur  is  solid  and  the  liquidity
position is good. The company continues to work on the enlargement of
the power plant at Hellisheiði and intends to take the last phase  of
its energy production  into use  in the  first quarter  of 2011.  The
construction of  other power  plants  will be  limited by  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.

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


Orkuveita Reykjavikur - Interim Financial Statements

Orkuveita Reykjavíkur - Interim Financial Statements
All amounts are in ISK millions
Interim statement                                 2009        2008
of comprehensive income                       1.1-31.3    1.1-31.3

Operating revenue ........................       6.541       6.079
 Operating expenses ......................     (3.206)     (2.679)
                                     EBITDA      3.335       3.400
 Depreciation, amortisation .............      (2.374)     (1.632)
   Financial income and (expenses) ....            703    (22.729)
     Results from associated companies              19          42
            Profit (loss) before income tax      1.684    (20.919)
                Income tax
    ..................................             129       3.676
                Profit (loss) of the period      1.812    (17.243)

Attributable to:
   Equity holders of the Company ......          1.806    (17.220)
 Minority interest in subsidiaries ......            7        (23)
                Profit (loss) of the period      1.812    (17.243)

   Net cash from operating activities ..           425         443


Interim statement
of financial position                        31.3.2009  31.12.2008

Non-current assets .......................     242.946     252.618
              Current assets
       .............................            19.613       6.755
                               Total assets    262.559     259.373

                  Equity
..........................................      49.971      48.359
          Non-current liabilities
           ....................                194.810     196.589
            Current liabilities
        ..........................              17.778      14.425
                     Equity and liabilities    262.559     259.373

Ratios
   Working capital ratios ................        1,10        0,47
                Equity ratios                    19,0%       18,6%
      ..............................

Attachments:

Orkuveita Reykjavikur (Reykjavik Energy) Q1 2009.pdf