2012-11-23 15:00:00 CET

2012-11-23 15:00:04 CET


REGULATED INFORMATION

English Islandic
Orkuveita Reykjavíkur - Financial Statement Release

Improved Payment Capacity 


Orkuveita Reykjavikur Returns ISK 11 billion EBIT the first nine months of 2012
- Financial Plan on Schedule 

Reykjavik, 2012-11-23 15:00 CET (GLOBE NEWSWIRE) -- Orkuveita Reykjavíkur (OR -
Reykjavik Energy) results have considerably improved the company´s ability to
pay the vast debts that lay on the operations. According to Q3 2012
Consolidated Financial Statements (attached), EBITDA was ISK 17.8 billion and
EBIT ISK 11 billion in the first nine months. The ration between EBITDA and
debt is now similar to what it was before the economic collapse in Iceland in
late 2008. 

OR´s Action Plan - an agreement between OR and its owners - was approved in the
spring of 2011 and contains various actions aiming at improving the company´s
cash position by ISK 50 billion before year end 2016. After Q3 2012, the
results surpass the Plan's goals by ISK 1.2 billion. External factors -
interest rates, price of aluminium and currency exchange rates - have also
proven to be more favourable than expected by ISK 564 million. All elements of
the Plan are on track except for sales of assets, which has progressed slower
than scheduled. 



Improved Operations

In addition to the Plan, various measures have been taken to improve OR's
operations, including; 

  -- new CEO and management team hired
  -- re-focusing with emphasis on core operations along with extensive
     cost-cutting
  -- payments off loans renegotiated
  -- agreements have been made with domestic and foreign banks on hedging
     against fluctuations in price of aluminium, interest rates and currency
     exchange rates.



Bjarni Bjarnason, CEO:

It gradually becomes more apparent that the extensive rationalization of our
operations is permanent. OR's staff and directors are very well aware of our
cost-cutting goals and these operations results are a fruit of that. The “Plan”
is on track and we need that, because of large payments of loans in year 2013,
obligations which OR seems able to fulfill. 



Managers' overview

All amounts are in ISK millions and on each year's price level



Operations through Q3                 2008      2009     2010      2011     2012
--------------------------------------------------------------------------------
Revenues                            16.816    17.960   19.444    24.388   27.286
--------------------------------------------------------------------------------
Expenses                           (8.634)   (9.434)  (9.557)   (8.910)  (9.449)
--------------------------------------------------------------------------------
EBITDA                               8.183     8.526    9.886    15.478   17.838
--------------------------------------------------------------------------------
Depreciation                       (4.990)   (6.979)  (5.936)   (6.178)  (6.862)
--------------------------------------------------------------------------------
EBIT                                 3.192     1.546    3.950     9.300   10.976
--------------------------------------------------------------------------------
Realised financial income (and     (3.555)   (4.433)  (2.430)   (2.222)  (3.364)
 expenses)                                                                      
--------------------------------------------------------------------------------
Result before unrealised             (362)   (2.887)    1.520     7.079    7.612
 financial income (and expenses)                                                
--------------------------------------------------------------------------------
Unrealised financial income (and  (47.105)  (10.707)   20.849  (14.941)  (4.217)
 expenses)                                                   
--------------------------------------------------------------------------------
Result before income tax          (47.468)  (13.593)   22.368   (7.862)    3.395
 according to the interim                                                       
 statements                                                                     
--------------------------------------------------------------------------------
Income tax                           7.880     2.305  (5.575)     2.519    (814)
--------------------------------------------------------------------------------
Result of the period              (39.588)  (11.288)   16.793   (5.343)    2.580
--------------------------------------------------------------------------------






         Contact:
         Bjarni Bjarnason
         CEO
         + 354 516 7707