Orkuveita Reykjavíkur - Financial Statement Release

Positive Results for OR in Q1 2017

Reykjavík, 2017-05-15 17:17 CEST (GLOBE NEWSWIRE) -- Operation results for
Orkuveita Reykjavíkur (OR; Reykjavík Energy) were similar in Q1 2017 as in
recent years. Increased value of derivatives in long-term energy contracts with
price linked to aluminum prices resulted in considerable profits, the increase
amounting to ISK 5.3 billion. “A bird in hand is worth two in the bush,” says
CEO Bjarni Bjarnason referring to the recorded profits. OR’s income tax
increases significantly from previous year, forecast at ISK 2.3 billion in the
company’s interim financial statements for Q1 2017, approved by the Board of
Directors today. 

Stable operational results

At the beginning of year 2017, OR lowered the tariffs for parts of the group’s
services; the group consisting of Veitur Utilities, ON Power, and Reykjavík
Fibre Network, in addition to the parent company. The group’s revenues for Q1
2017 increased by ISK 487 million, compared to Q1 2016, despite decreased
tariffs for electricity distribution and potable water. ON Power was the
largest contributor to the increase. At the same time expenses increased by ISK
59 million. 

Key Financial Figures on the Web

OR has in recent years published Key Financial Figures along with the company’s
financial statements. They can now be found on the company’s website at
https://www.or.is/english/finance/key-financial-figures. The web also comprises
interim and annual financial statements for recent years. 

Bjarni Bjarnason, CEO

A key point in these statements is the minor increase in operational cost. That
enables us to keep the tariffs for our services low and pay our owners a fair
dividend. The large income increase related to higher aluminum price is far
from being in the bag. Naturally, we hope these increases endure but those
developments are not under our influence; a bird in hand is worth two in the
bush. We at Reykjavík Energy and the subsidiaries focus on faithfully and
economically executing the important functions we have been entrusted with. 

Managers’ Overview

All amounts are in ISK million       Q1 2013     Q1    Q1 2015  Q1 2016  Q1 2017
                                               2014*                            
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Revenues                              10,650            11,110   11,336   11,822
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Expenses                             (3,361)           (3,880)  (4,079)  (4,138)
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thereof energy purchase and          (1,441)           (1,868)  (1,635)  (1,701)
 transmission                                                                   
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EBITDA                                 7,288             7,230    7,257    7,685
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Depreciation                         (2,234)           (2,399)  (2,406)  (2,384)
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EBIT                                   5,054             4,831    4,850    5,301
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Results of the period                  4,166             3,276    2,535    6,039
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Cash flow statement:                                                            
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Received interest income                  88               172        2       59
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Paid interest expense                (1,113)             (989)    (679)    (764)
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Net cash from operating activities     5,169             5,246    4,998    6,454
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Working capital from operation         5,289             6,145    6,129    5,594
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*No financial statements were published for Q1 2014 because of OR’s unbundling  
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         Contact:
         Bjarni Bjarnason
         CEO
         tel. +354 516 6100

Attachments:

OR interim financial statements Q1 2017.pdf