HS Orka hf. - Financial Statement Release

HS Orka hf Announces Financial Statement for 2013

Financial Statements for 2013 of HS Orka hf. were approved at a Board of
Directors' meeting on 25th of February 2014. The Financial Statements of HS
Orka hf. is prepared in accordance with International Financial Reporting
Standards (IFRS) and is in ISK. The Condensed Interim Financial Statement can
be found on the company´s website http://www.hsorka.is 



Main Matters:

  -- Operating revenue increased to ISK 7,031 million for the year 2013, but was
     6,811 in 2012. Loss for the period amounted to ISK 355 million, with the
     comparable number for 2012 being a profit of ISK 653 million. Total
     comprehensive loss amounted to ISK 434 million but there was total
     comprehensive income of  ISK 5,509 million in 2012.
  -- Equity ratio is very strong, at the end of the period the ratio was 58,0%.
     (2012: 53.4)
  -- Net finance income and cost have a decisive influence on the result now as
     so often before. Change in embedded derivatives in power purchase agreement
     (linked to aluminum price) was negative ISK 4,138 million in 2013 compared
     to a negative change of ISK 201 million in 2012. Currency gain in 2013 was
     around ISK 1,602 million but there was a foreign exchange loss of ISK 782
     million in 2012.
  -- The company‘s EBIDTA was ISK 2,603 million in 2013 compared to ISK 2,923
     million in the same period of 2012. EBIDTA is strong and increase in
     revenue was 2% or ISK 150 million which amounted to 7,031 ISK million for
     the year compared to ISK 6,881 million for 2012. Operating cost increased
     around 17% or ISK 787 million between the years. The increase in revenue is
     mainly due to increased sales to the retail market, offset by a decrease in
     aluminum prices. On the cost side there is an increase in power purchases
     and transmission cost. Maintenance drilling was performed on two wells,
     while there was no such drilling in same period last year.


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

Attachments:

HS Orka Financial Statement 31 December 2013 - final 5-.pdf