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2009-03-20 14:31:36 CET 2009-03-20 14:32:44 CET REGULATED INFORMATION Landsvirkjun - Financial Statement Release- Landsvirkjun's results in 2008The financial statements of Landsvirkjun were approved today, 20 March 2009, in a meeting of the Board of Directors. The financial statements of Landsvirkjun are prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU and they are presented in USD, which is the functional currency of Landsvirkjun as of the beginning of 2008. Comparative figures for the year 2007 have been translated at the end exchange rate of the USD against the ISK at year end 2007. Loss on the operation of the Landsvirkjun group for the year 2008 amounted to USD 344.5 million but EBIT amounted to USD 246 million. Cash from operation amounted to USD 184.4 million. At year end, the group's total assets amounted to USD 4,619.2 million and equity amounted to USD 1,376.8 million. Equity ratio was 29.8% at year end 2008. Operating revenue increased by USD 83 million, which is mainly explained by the increase in sale of electricity following the commissioning of the Kárahnjúkar power plant. Operating expenses before depreciation amounted to USD 100.5 million during the year compared to USD 105.8 the previous year. Financial expenses in excess of financial income amounted to USD 660.6 million, which is mainly explained by a decrease in the fair value of embedded derivatives in energy sales agreements which are linked to the price of aluminium as well as currency exchange loss. The currency exchange loss and fair value changes are for the most part unrealised and must be taken into account in the evaluation of the Company's results. Average nominal interest on long-term loans were 4.51% during the year 2008 compared to 4.69% the previous year. Foreign exchange development and fair value changes in embedded derivatives will continue to be a predominant factor in the results for this year. The Company has access to liquidity, which in addition to cash from operation will ensure that the Company will be able to meet its liabilities until the end of 2010. Landsvirkjun will not undertake new power projects unless the Company will be able to provide new long-term funding. The financial statements of Landsvirkjun will be submitted to the Company's Annual General Meeting on 3 April 2009. |
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