Orkuveita Reykjavíkur - Company Announcement

A proposal for dividend conditions

Reykjavik, 2015-11-06 16:25 CET (GLOBE NEWSWIRE) -- Reykjavik Energy‘s
(Orkuveita Reykjavikur; OR) Board of Directors today passed a proposal to the
Company‘s owners regarding conditions for payment of dividends. The motion is
now being considered by the municipalities that own Reykjavik Energy; The City
of Reykjavik, the Township of Akranes, and the Municipality of Borgarbyggd. 

The proposal is made in accordance with Reykjavik Energy‘s owners‘ policy,
which presumes the BoD passes such a motion for owners‘ ratification. The
proposal includes financial parameters that shall be fulfilled before and after
dividends are paid. 

These are the conditions:

Financial conditions      2016-2018  2019-
------------------------------------------
1. Current ratio             >1,0     >1,0
2. Equity ratio              >35%     >40%
3. FFO interest coverage     >3,5     >3,5
4. RCF / net debt            >11%     >13%
5. FFO / net debt            >13%     >17%
6. Max dividend payment      ≤50%     ≤50%
------------------------------------------

According to The Plan, a series of operational measures that OR has operated by
since 2011, no dividends are paid in its duration. The Plan is in effect until
year-end 2016. 


         Contact:
         Bjarni Bjarnason
         CEO
         + 354 516 7707