Landsvirkjun - Financial Statement Release

Landsvirkjun's Consolidated Financial Statements 2013

Profit before unrealised financial items increased by 17.5% from the previous
year 

  -- Electric power sales increased by 416 GWh between years and have never been
     higher
  -- Due to lower aluminium prices the loss of the year amounted to USD 38.5
     million



Key figures from the consolidated financial statements

  -- Operating revenues amounted to USD 422.9 million which is an increase of
     3.7% compared to the previous year.
  -- EBITDA amounted to USD 329.1 million which is an increase of 2.4% compared
     to the previous year. EBITDA ratio is  77.8% of turnover, compared to 78.8%
     in the previous year.
  -- Profit before unrealised financial items amounted to USD 121.8 million,
     compared to USD 103.7 million in the previous year, or an increase of 17.5%
     between years.
  -- Cash flow from operations amounted to USD 258.5 million which is an
     increase of 9.4% compared to the previous year.
  -- Investing activities amounted to USD 149.5 million.  Cash flow from
     operations less investing activities thus amounted to USD 109.0 million
     which was allocated to reduce debt and to pay out a dividend to owners.
  -- The loss of the year amounted to USD 38.5 million.



Hordur Arnarson, the CEO:"In the year 2013, Landsvirkjun's energy generation and sales reached new highs
in the company's history with 13,186 GWh sold, an increase by 416 GWh from the
previous year. The operation was successful and for the most part
incident-free. Operating revenues, EBITDA and profit before unrealised
financial items increased during the year. 

Despite the positive results of electric power sales in a difficult market
environment there was a loss on Landsvirkjun's operation last year. The reason
for the loss can be traced to the decrease in world market aluminium prices,
which among others is reflected in the significant decrease in the carrying
amount of embedded derivatives, on which the company can have limited effects."

Attachments:

Arsreikningur LV 2013 samsta.pdf

Press release 2013.pdf