HS Orka hf. - Financial Statement Release

HS Orka hf announces Condensed Interim Financial Statements for the first nine months of 2014

Press Release







Reykjanesbær, November 12 2014





HS Orka hf announces Condensed Interim Financial Statements for the first nine
months of 2014 





Condensed Interim Financial Statements for the nine months ended 30 September
2014 of HS Orka hf. were approved at a Board of Directors meeting on 12
November 2014. The Financial Statements of HS Orka hf. are prepared in
accordance with International Financial Reporting Standards (IFRS) as adopted
by the European Union and are stated in ISK. The Financial Statement can be
found on the company´s website: http://www.hsorka.is 

Operating revenue for the period 1 January - 30 September 2014 increased 3% to
ISK 5,311 million compared to ISK 5,142 million for the same period in 2013,
primarily due to increased retail sales. Profit for the period amounted to ISK
1,198 million, with the comparable number for 2013 being a loss of ISK 302
million. Total comprehensive profit amounted to ISK 1,142 million compared to a
comprehensive loss of ISK 360 million in the first nine months of 2013. 

Changes in the value of the embedded derivative in power purchase agreements
(linked to aluminum price) was negative for the period of ISK 177 million in
the first nine months of 2014, compared to a negative change of ISK 3,043
million in the same period in 2013. This was partially offset by a currency
gain of ISK 112 million, versus a currency gain of ISK 1,008 million in the
first nine months of 2013. 

Equity ratio increased to 60.7% against 58.0% at year end 2013, reflecting
continued paydown of debt. 

Company operations are going well and the company‘s EBITDA remained strong at
ISK 1,963 million in the first nine months of 2014, which is a 3% increase
compared to same period 2013 where the EBITDA was ISK 1,907. The EBITDA
increase was primarily driven by the revenue increase mentioned above, and was
offset by a 1% increase operating costs (ISK 158 million between the periods)
and a decrease in aluminum prices. An increase in power purchases and
transmission costs during the period was the primary driver for the cost
increases, as plant operating costs actually decreased. Other operating costs
are higher than in same period 2013 predominantly due to costs of preparing for
the arbitration hearings connected to the power sales contract with Norðurál
Helguvík. Those hearings are expected to take place in spring 2016. 

Further information is provided by Ásgeir Margeirsson, Managing Director of HS
Orka hf., tel. 520 9300 / 855 9301

Attachments:

HS Orka Financial Statement 30 September 2014.pdf