Orkuveita Reykjavíkur - Company Announcement

Progress report on action plan

Reykjavik, 2011-10-03 14:16 CEST (GLOBE NEWSWIRE) -- An agreement between
Orkuveita Reykjavikur (OR) and its owners, tackling the company‘s financial
situation (The Plan), was announced March 29th 2011. It contains various
measures and the Plan's progress in Q2 2011 is on schedule. 

The total progress in the first half of year 2011 is ISK 312 m. over the
period's target figures. The best results are in postponement of investments in
utility systems as well as an overall great progress in all areas of the
project. Individual reports follow in the table below. It contains total
amounts for year 2011 and the progress as of end of Q2 2011. 

Influences of external variables are negative during the period and equates to
ISK 129 m. Net total of The Plan is therefore ISK 183 m. above target. 



Agreement                                       The Plan 2011  Actual 1H 2011
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Postponement of investments in sewage                       0          89.273
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Postponement of investments in utility systems      1.205.000         595.616
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Decrease in other investments                         250,000         121.869
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Increase in tariffs                                 1.122.000         285.239
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Reduction in operation costs                          300.000          44.791
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Sale of assets                                      1.000.000         123.128
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Subordinated loans from owners                      8.000.000       7.925.360
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Total                                              11.877.000       9.185.276
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Sale of assets previously approved                   -375.000        -124,875
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Total                                              11.502.000       9.060.401
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 All amounts are in ISK ,000