Orkuveita Reykjavíkur - Financial Statement Release

Orkuveita Reykjavíkur, consolidated financial statements for the year 2010

Orkuveita Reykjavíkur´s (OR) consolidated financial statements for the year
2010 were approved by the Board of Directors today. 

The Board of Directors has furthermore approved, in cooperation with OR's
owners, an extensive action plan to secure a more solid foundation for the
company‘s operation and activities for the period ending at year end 2016. The
plan comprises reduction and postponement of investments, economization,
increased tariffs and a subordinated loan from the Company´s owners. These
actions will ensure sufficient operating capital for the years 2011 through
2016. A separate announcement has been released regarding these actions. 

Orkuveita Reykjavikur's consolidated financial statements are in accordance
with international financial reporting standards as adopted by the EU. 

Bjarni Bjarnason, CEO of OR:

“Orkuveita Reykjavíkur needs to refocus on core business activities, the
utilities. The weak liquidity position of the Company reflects its difficult
financial status and indicates the need for the measures taken.” 

Highlights of the year 2010

Orkuveita Reykjavikur´s operations returned a profit of ISK 13.729 million for
the year 2010. The year 2009 resulted in a loss of ISK 2.516 million. 

Operating revenues for the year 2010 amounted to ISK 27.916 million. Operating
revenues for the year 2009 amounted to ISK 26.013 million. 

EBITDA of the Company for the year 2010 was ISK 13.951 million and ISK 12.970
million in the year 2009. 

Financial income and expenses were positive for the year 2010 and amounted to
ISK 10.753 million. The amount for year 2009 was negative by ISK 8.843 million. 

Total assets 31 December 2010 were ISK 286.540 million and were ISK 281.526
million at year-end 2009. 

Equity of the Company 31 December 2010 was ISK 52.847 million and was ISK
40.657 million at year-end 2009. 

Total liabilities of the Company 31 December 2010 were ISK 233.694 million
compared to ISK 240.868 million at year-end 2009. 

The equity ratio was 18.4% as at 31 December 2010 compared to 14.4% at year-end
2009. 



Other issues and prospects

The Board of Directors agreed in August 2010 to secure the income stream of the
Company by raising rates, strategic charge setting and curtailing of
operations. Today the Company announced its action plan between the Company and
its owners due to the Company´s financing problems. The action plan is for the
period 2011 to 2016. 

The Company plans to conclude the enlargement of the power plant at Hellisheiði
by commissioning the 5th phase of the plant, producing of 90 MW electricity, in
the latter half of 2011. 

For further information contact Bjarni Bjarnason, CEO Orkuveita Reykjavikur,
tel: +354 516 7707. 



Orkuveita Reykjavíkur - Financial Statements              
All amounts are in ISK millions                           
Income statement                          2010        2009
Operating revenue                       27.916      26.013
Operating expenses                    (13.964)    (13.042)
EBITDA                                  13.951      12.970
Depreciation, amortisation             (7.962)     (7.814)
Financial income and (expenses)         10.753     (8.843)
Results from associated companies           24       (228)
Profit (loss) before income tax         16.766     (3.914)
Income tax                             (3.037)       1.398
Profit (loss) of the year               13.729     (2.516)
Attributable to:                                          
Equity holders of the Company           13.729     (2.539)
Minority interest in subsidiaries            0          23
Profit (loss) of the year               13.729     (2.516)
Net cash from operating activities      11.588       8.429
Statement of financial position     31.12.2010  31.12.2009
Non-current assets                     278.270     272.927
Current assets                           8.270       8.598
Total assets                           286.540     281.526
Equity                                  52.847      40.657
Non-current liabilities                212.162     221.780
Current liabilities                     21.531      19.088
Equity and liabilities                 286.540     281.526
Ratios                                                    
Working capital ratio                     0,38        0,45
Equity ratio                             18,4%       14,4%

Attachments:

Orkuveita Reykjavíkur - Consolidated Financial Statements 2010.pdf