HS Orka hf. - Financial Statement Release

HS Orka hf. announces Consolidated Condensed Interim Financial Statements for the six months ended June 30, 2016

Consolidated Condensed Interim Financial Statements for the six months ended
June 30, 2016 of HS Orka hf. (the “Company”) were approved at a Board of
Directors meeting on 9 August 2016. The financial statements of HS Orka hf. are
prepared in accordance with International Financial Reporting Standards as
adopted by the European Union and are stated in ISK. The financial statements
can be found on the Company´s website: http://www.hsorka.is 

Company profit for the period was ISK 1,278 million (YTD 2015: ISK 142 million)
and operating revenue was ISK 3,507 million (YTD 2015 ISK 3,824 million). The
reduction in revenues is largely due to decreases in generation, and sales to
fish smelters due to a poor fishing season. 

Net finance income was ISK 874 million (YTD 2015: expense ISK 1,568 million).
The major driver for the variance was due to an increase in aluminum prices
since year-end which drove up the fair value of the embedded derivatives and
resulted in a gain of ISK 841 million (YTD 2015: loss of ISK 1,239 million). In
addition, net exchange rate differences were positive of ISK 150 million (YTD
2015 negative of ISK 282 million). 

A total comprehensive profit of ISK 1,193 million was recorded in the period
against a profit of ISK 75 million in 2015. 

The Company’s equity ratio is 62.3% compared to 58.6% at year-end 2015.

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