Orkuveita Reykjavíkur - Financial Statement Release

Orkuveita Reykjavikur's Consolidated Condensed Financial Statements Q3 2011

Reykjavik, 2011-11-28 13:40 CET (GLOBE NEWSWIRE) -- Operations of Orkuveita
Reykjavíkur (OR) returned better results for the first nine months of 2011 than
for the comparative period last year. The reasons are increased revenues and
curtailing in operations. Net cash from operating activities amounted to ISK
14.1 billions, an increase of ISK 4.3 billions from the comparative period
2010. 

Unfavorable currency exchange developments and decrease in the price of
aluminium in the first nine months of 2011, had a big negative effect on
financial income and expense items. Those items change by ISK 35.6 billions
between periods. Therefore the period shows loss of ISK 5.344 million compared
to a profit of ISK 16.794 million in the same period 2010 when the development
of the exchange rate was more favorable. 

Orkuveita Reykjavíkur´s condensed consolidated interim financial statements for
the period 1 January to 30 September 2011 were approved by the Board of
Directors and the CEO at a board meeting today. 

Orkuveita Reykjavikur's condensed consolidated interim financial statements are
in accordance with international financial reporting standards as adopted by
the EU. 

Bjarni Bjarnason, CEO of OR:

“It is good to see how well underway the Company is in gaining control of the
operations and curtailing costs. This is a key factor for Orkuveita Reykjavikur
to keep the objectives of the action plan, made in cooperation with the
Company´s owners this spring. However, the development of the price of
aluminium and exchange rate reveal that the Company is still too vulnerable to
changes in external factors.” 

Highlights of the period 1 January to 30 September 2011

Orkuveita Reykjavikur´s operations returned a loss of ISK 5.344 million in the
first nine months of 2011. The comparative period 2010 resulted in a profit of
ISK 16.794 million. 

Operating revenues for the first nine months of 2011 amounted to ISK 24.388
million. Operating revenues for the first nine months of 2010 amounted to ISK
19.444 million. 

EBITDA of the Company for the first nine months of 2011 was ISK 15.478 million
and ISK 9.886 million in the comparative period 2010. 

Financial income and expenses were negative for the first nine months of 2011
and amounted to ISK 17.157 million. The amount for the first nine months of
2010 was positive by ISK 18.395 million. 

Total assets 30 September 2011 were ISK 291.735 million and were ISK 286.540
million at year-end 2010. 

Total liabilities of the Company 30 September 2011 were ISK 237.093 million
compared to ISK 233.694 million at year-end 2010. 

Equity of the Company 30 September 2011 was ISK 54.642 million and was ISK
52.847 million at year-end 2010. 

The equity ratio was 18.7% as at 30 September 2011 compared to 18.4% at
year-end 2010. 



Other issues and prospects

In March 2011 The Board of Directors and OR's owners agreed upon an extensive
action plan to secure a more solid foundation for the company‘s operation and
activities for years 2011 through 2016. The plan comprises reduction and
postponement of investments, economization, increased tariffs and asubordinated loan from the Company´s owners. 



Orkuveita Reykjavíkur Interim Financial Statements       
1 January to 30 September 2011                           
All amounts are in ISK millions                          
Interim statement                        2011        2010
of comprehensive income              1.1-30.9    1.1-30.9
---------------------------------------------------------
Operating revenue                      24.388      19.444
Operating expenses                    (8.910)     (9.557)
                                   ----------------------
EBITDA                                 15.478       9.886
Depreciation, amortisation            (6.178)     (5.936)
Financial income and (expenses)      (17.157)      18.395
Results from associated companies         (5)          24
                                   ----------------------
   (Loss) profit before income tax    (7.862)      22.369
Income tax                              2.519     (5.575)
      (Loss) profit for the period    (5.344)      16.794
                                   ======================
Attributable to:                                         
Equity holders of the Company         (5.344)      16.794
Minority interest in subsidiaries           0           0
      (Loss) profit for the period    (5.344)      16.794
                                   ======================
Net cash from operating activities     14.118       9.827
Statement of financial position     30.9.2011  31.12.2010
---------------------------------------------------------
Non-current assets                    281.717     278.270
Current assets                         10.017       8.270
                      Total assets    291.735     286.540
                                   ======================
Equity                                 54.642      52.847
Non-current liabilities               214.557     212.162
Current liabilities                    22.535      21.531
            Equity and liabilities    291.735     286.540
                                   ======================
Ratios                                                   
Working capital ratios                   0,44        0,38
Equity ratios                           18,7%       18,4%






         Bjarni Bjarnason, CEO: +354 516 7707.

Attachments:

Orkuveita Reykjavikur - financial statements_30 9 2011.pdf