2015-11-23 17:20:02 CET

2015-11-23 17:20:02 CET


REGULATED INFORMATION

English Islandic
Orkuveita Reykjavíkur - Financial Statement Release

Stable and good operating results at Reykjavik Energy 


Reykjavik, 2015-11-23 17:19 CET (GLOBE NEWSWIRE) -- Orkuveita Reykjavíkur’s
(OR-Reykjavík Energy) operations were successful in the first nine months of
year 2015. Rationalization in operations continue to return good and solid
results despite unfavourable development in some externalities. The Plan, an
operations scheme for years 2011 through 2016, has already returned the set
goal. OR’s consolidated financial statements for Q3 2015 were approved by the
Board of Directors today with a bottom line profit of ISK 3.1 billion. 

The Plan is the key

OR’s Plan, initiated April 1st 2011 had through September 30th 2015 yielded ISK
53.2 billion in improved cash position. That is ISK 7.3 billion above target
but the Plan’s ultimate goal of improving OR’s cash position by ISK 51.3
billion by year-end 2016 was already reached at mid-year 2015. 

Composition of the Plan’s Yield

The attached graph depicts the share individual parts of OR’s Plan have
yielded.  About one-sixth of the returns can be traced to tariffs but the most
important factor is decreased investment in utility systems. Permanent
reduction of operating cost accounts for 10% of the Plan’s returns. 

The OR Group

The largest companies comprising the OR group are Utilities, that house all
licenced operations, ON Power, producing and selling electricity and hot water
generated in power plants, and Reykjavik Fibre Network, which installs and
operates high-end data connections. Among other things, the parent company
operates a collective service centre and takes care of the group’s finances. 

Bjarni Bjarnason, OR’s CEO

These financial statements depict resilience in the operation of the companies
within the OR group. Reductions in operating cost endure. Improved risk
management decreases sustains fluctuation in operating results, allowing us to
return a profit despite low aluminium price. 

Now, we consider what supersedes the Plan at year end 2016. In recent years,
the Company has reached more cohesion with its stakeholders and we will do our
best to maintain that. 

Managers’ overview

Operations through Q3 2015              2011     2012     2013     2014     2015
All amounts are at each year’s                                                  
 price level                                                                    
                                                                                
Revenues                              24,388   27,286   28,806   26,960   28,768
Electricity purchases and            (3,610)  (3,490)  (3,902)  (3,644)  (4,645)
 transportation                                                                 
Salaries and other expenses          (5,300)  (5,958)  (5,892)  (5,551)  (5,889)
EBITDA                                15,478   17,838   19,012   17,766   18,234
Depreciation                         (6,178)  (6,862)  (6,251)  (6,510)  (7,172)
EBIT                                   9,300   10,976   12,762   11,256   11,061
                                                                                
Result of the period                 (5,344)    2,580    5,796    7,879    3,093
                                                                                
Cash flow statement:                                                            
Received interest income                  98       87      176      442      377
Paid interest expense                (2,309)  (3,869)  (3,448)  (3,420)  (3,181)
Net cash from operating activities    14,118   15,572   16,934   17,885   18,126
Working capital from operation        12,937   13,086   14,973   12,677   14,734




         Contact:
         Mr. Ingvar Stefansson
         CFO
         +354 617 6301