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2009-08-20 18:44:17 CEST 2009-08-20 18:45:17 CEST REGULATED INFORMATION This message has been corrected. Click here to view the corrected message Landsvirkjun - Financial Statement Release- Q2 2009According to Landsvirkjun's consolidated income statement, profit for the first six months of the year 2009 amounted to USD 47.3 million or approximately ISK 6 billion based on the present exchange rate. The interim financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) and are presented in USD, which is the functional currency of Landsvirkjun. Cash and cash equivalents from operating activities amounted to USD 103.6 million and equity at the end of the period amounted to USD 1.4 billion. Key figures in the consolidated interim financial statements of Landsvirkjun (amounts in USD thousand): See attachment. Consolidated revenues amounted to USD 139 million during the period compared to USD 239.6 million during the same period the previous year. The decrease amounts thus to USD 100 million and is mainly due to lower aluminium prices, which were very high during the first six months of the previous year with a rapid decline in the latter half, and the weakening of the ISK against the USD. Decreased revenues affect the Company's results less than might be expected due to hedge instruments. During the period from January to June 2009, the Company received USD 40 million from foreign financial institutions due to aluminium hedge instruments while in the same period of 2008, the Company paid USD 35.7 million due to hedging. Realised income from hedge instruments is recognised among financial items. Interest expenses are also recognised under financial items. They decreased from USD 91.3 million in the first six months of the year 2008 to USD 45.9 million in the same period this year. The decrease is mainly due to lower interest rates in the United States and Europe. Landsvirkjun's results are sensitive to changes in fair value of embedded derivatives relating to the Company's power contracts and exchange rate changes, since part of the Company's long-term liabilities are denominated in other currencies than the functional currency. Positive fair value of derivatives capitalised at the end of June 2009 amounts to USD 187 million after deducting negative fair value of derivative agreements. The effect of fair value changes is recognised in the income statement. Landsvirkjun's liquidity is good with cash and cash equivalents amounting to USD 129 million at the end of June. The Company also has access to a Revolving Credit Facility to the amount of USD 308 million, which the Company may draw on at any time. Cash balance in addition to the unused Credit Facility at the end of June amounted thus to a total of USD 437 million. The Company has guaranteed sufficient liquidity throughout the year 2011. In order to further ensure Landsvirkjun's liquidity the Company and the State have entered into an Credit Contingent Facility. The terms of which are that the Icelandic Central Bank will provide the Company with foreign currency, for which Landsvirkjun will pay in ISK or in bonds, should the Company previously have exhausted all other financing options. The contract amounts to a maximum of USD 300 million and expires on 1 July 2011. At the end of June, the company's total assets amounted to USD 4.6 billion and the equity ratio was 31.2% The outlook for Landsvirkjun's operations is relatively favourable for the year 2009 as a whole, especially if aluminium prices remain at their current levels, since aluminium prices have increased considerably since their low in March. However, foreign exchange rates and aluminium price developments will still be significant influential factors in the results of the year. The interim financial statements of Landsvirkjun for the period from 1 January to 30 June 2009 were approved in a Board of Directors Meeting on 20 August 2009. Further information can be provided by Stefán Pétursson, CFO of Landvirkjun, via telephone number 515 9000. |
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