Orkuveita Reykjavíkur - Financial Statement Release

Good Q3 results at OR

Stronger ISK favorably impacts overall results | Stability of revenues,
expenses, and operating results | Utility tariffs decreased at year-end 

Reykjavík, 2016-11-28 16:16 CET (GLOBE NEWSWIRE) -- Orkuveita Reykjavíkur’s
(OR; Reykjavík Energy) operations through Q3 2016 showed solid and good
results. Revenues are stable but results of recent labor bargaining are
apparent in the attached interim consolidated financial statements. Earnings in
terms of EBIT and EBITDA are similar to recent years. The strengthening of the
Icelandic krona has a positive impact on results, both the revenues and the
balance sheet at the end of the period. 

OR’s net debt has decreased by ISK 17.8 bin since the beginning of the year.
Thereof the strengthening of the krona has decreased debt by ISK 3.8 bin. That
amount also affects overall results which show a profit of ISK 9.4 bin for the
first nine months of year 2016. 

OR’s interim consolidated financial statements Q3 2016 were approved by the
board of directors today. 

Reduced tariffs

Yesterday, Veitur Utilities announced lowering of tariffs at year-end. Veitur
Utilities is OR’s subsidiary responsible for the regulated operations of
district heating, water works, electricity distribution, and sewage systems.
Rationalization in operations allows for and demands lowering tariffs of
electric distribution by 5.8% and of potable water tariffs by up to 11.2%.
Substantial investments in heating and sewage systems does not allow for
reduction of tariffs. 

Bjarni Bjarnason, CEO

Our customers will benefit directly from the progress in the group’s operations
when, at year-end, tariffs for parts of the utilities operations will be
lowered. Rationalization in regulated operations oblige us to return the
benefits to the customers of those utilities showing the best operating
results. 



Managers’ overview

Amounts are in ISK million         Q3 2012  Q3 2013  Q3 2014   Q3 2015   Q3 2016
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Revenues                            27,286   28,806   26,960    28,951    29,921
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Expenses                           (9,449)  (9,794)  (9,195)  (10,718)  (11,785)
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thereof energy purchase and        (3,490)  (3,902)  (3,644)   (4,645)   (4,555)
 transmission                                                                   
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EBITDA                              17,838   19,012   17,766    18,234    18,136
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Depreciation                       (6,862)  (6,251)  (6,510)   (7,172)   (7,584)
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EBIT                                10,976   12,762   11,256    11,061    10,551
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Result of the period                 2,580    5,796    7,879     3,093     9,368
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Cash flow statement:                                                            
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Paid interest expense              (3,869)  (3,448)  (3,420)   (3,181)   (2,600)
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Net cash from operating             15,572   16,934   17,885    18,126    17,305
 activities                                                                     
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         Contact:
         Mr. Ingvar Stefansson
         CFO
         Tel. +354 516 6100

Liitteet:

OR Key Financial Figures Q3 2016.pdf

OR Interim Financial Statements Q3 2016.pdf

The Plan Progress Report Q3 2016.pdf