Orkuveita Reykjavíkur - Company Announcement

Good results and solidified finances

Reykjavik Energy's budget approved

Reykjavik, 2015-10-13 18:14 CEST (GLOBE NEWSWIRE) -- Resolve in the operations
of Reykjavik Energy (RE) and its subsidiaries will return good results and
solidified finances in coming years despite considerable investments. RE's
consolidated budget for year 2016 and a five-year forecast for years 2017
through 2021 has been approved by the Company's Board of Directors. Principal
subsidiaries are Utilities plc, ON Power plc, and Reykjavik Fiber Network ltd. 

Comprehensive measures initiated in early 2011, known as The Plan, had already
by mid-year 2015 returned better cash position than intended by year-end 2016.
Enduring rationality in operations while revenues increase, return good
operating results, decreasing debt, and solidified finances. 

Investments by the RE group have gradually increased since year 2013. In year
2016, investment in a new sewerage in West-Iceland will be concluded, following
which traditional maintenance and renewal investments are predominant by
Utilities. Late year 2014, the decision was made to discontinue outsourcing of
metering. It implies re-acquiring 150,000 meters for electricity and hot and
cold water. 

ON Power plc's main investments are at the Hellisheidi Power Plant.  There,
steam supply is being maintained by connecting the plant with the Hverahlid
geothermal area and through maintenance drilling. Other investments include
various environmentally improving projects, i.e reduced emissions of hydrogen
sulphide and general environmental house-keeping following a decade of
construction in the Hengill area. 

Reykjavik Fiber Network is currently concluding its roll-out of fiber to homes
in Reykjavik. The roll-out commenced a decade ago and demand for fiber
connections to each household are in a steadily growing demand. A number of
municipalities have requested the cooperation of Reykjavik Fiber Network and
the company's investment plans reflect that demand for this highest quality
connection available. 

Reykjavik Energy's budget for year 2016 and the five-year forecast for years
2017-2021 now goes to The City of Reykjavík for consideration as part of the
consolidated financial plans for The City. 


         Contact:
         Ingvar Stefánsson
         CFO
         + 354 516 6000

Attachments:

Reykjavik Energy - Consolidated Budget 2016 and a five year forecast 2017-2021.pdf