2013-03-22 15:28:02 CET
2013-03-22 15:29:05 CET
REGULATED INFORMATION
Orkuveita Reykjavíkur - Financial Statement Release
Reykjavik Energy Returns ISK 14.7 bn EBIT 2012
Emphasis on repaying debt
Reykjavik, 2013-03-22 15:28 CET (GLOBE NEWSWIRE) --
- Consolidated financial statements 2012 approved today
- The Plan returns cash flow ISK 1.8 billion above set target
- Debt is still heavy and equity too low
Operations of Reykjavik Energy (RE - Orkuveita Reykjavikur) returned EBIT of
ISK 14.7 billion in year 2012 compared to ISK 12.4 billion in 2011. Since year
2010, operating revenues have increased by 36% while operating expenses have
decreased by 8%. Continuous cost containment, increased electricity sales and
CPI-linked revenues from utilities are the principal reasons for these good
results.
EBITDA was ISK 25 billion, an increase of 18% from previous year.
RE's Board of Directors confirmed the Company´s consolidated financial
statements today. They are prepared in accordance with International Financial
Reporting Standards as adopted by the EU.
“The Plan” on Schedule
RE's financial action plan - “The Plan” - was approved in the spring of 2011 by
the Company and its owners. The Plan's objective is to improve the company´s
cash position by ISK 50 billion from initiation through 2016. At year end 2012
all aspects of the Plan were on schedule, though sales of assets have taken
longer than expected. With actions taken by the Board of Directors and the
company's owners in recent weeks, these are back on track. Today the Board of
Directors confirmed the sale of the Reykjavik landmark Perlan for ISK 950
million and the company´s CEO is authorised to finalise the sale of the
Company´s headquarters for ISK 5.1 billion. Various other assets are currently
in the process of being sold. Despite delays in sale of assets, the total
result of The Plan exceeds targets by ISK 1.8 billion.
Unfavourable External Variables
The impact of external variables, such as aluminium price and currency exchange
rates, was unfavourable during the year 2012. These external factors impact the
value of electricity sales contracts with the metal industry and debts in
foreign currencies increase. Aggregated impact of these and other unrealised
amounts in RE's income statements is negative by ISK 13.4 billion.
Consequently, the income statement resulted in a bottom-line loss of ISK 2.3
billion. Considerable effort has been made to mitigate risks relating to
unfavourable trends in aluminium prices, interest rates and foreign exchange
rates with to some success.
Today, the Board of Directors approved the terms of foreign currency loans from
foreign and domestic banks as well as significant risk mitigation agreements
regarding interest rates and exchange rates.
Bjarni Bjarnason, CEO:
The good result of our operations is due to pooled efforts of many; the Board
of Directors, the owners, each and every employee and last but not least our
customers. The effective strategy in The Plan has enabled us to stay on the
same track and the operating results show that we are heading the right way.
Furthermore, they have improved the Company´s credibility on financial markets
and made it possible for us to strengthen our finances.
Evidently, 2013 is the most challenging year of the Plan. Agreements have been
reached with foreign banks on rescheduling of payments, and the measures that
the Board of directors approved today is the result of our hard work. Now we
are confident that we will get through the difficult hurdle of the 2013 debt
servicing. Nevertheless, debt is still heavy and equity too low and therefore
it is of utmost importance to keep focus on efficient operations of Reykjavik
Energy.
Managers' Overview
All amounts are in ISK millions and on each year´s price level
Operations 2008 2009 2010 2011 2012
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Revenues 24.168 26.013 27.916 33.626 37.905
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Expenses (12.517) (13.042) (13.964) (12.391) (12.861)
--------------------------------------------------------------------------------
EBITDA 11.652 12.970 13.951 21.235 25.044
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Depreciation (6.953) (7.814) (7.962) (8.881) (10.371)
--------------------------------------------------------------------------------
EBIT 4.699 5.157 5.989 12.354 14.673
--------------------------------------------------------------------------------
Realised financial income and (3.364) (4.258) (3.424) (3.635) (5.169)
(expenses)
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Result before unrealised 1.334 898 2.565 8.719 9.504
financial income and
(expenses)
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Unrealised financial income (89.435) (4.812) 14.201 (16.027) (13.334)
and (expenses)
--------------------------------------------------------------------------------
Result before income tax (88.101) (3.914) 16.766 (7.307) (3.830)
according to the interim
statements
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Income tax 15.064 1.398 (3.037) 6.751 1.535
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Result (73.037) (2.516) 13.729 (556) (2.295)
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Contact:
Mr. Bjarni Bjarnason, CEO+ 354 516 7707
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