HS Orka hf. - Financial Statement Release

HS Orka hf. announces Consolidated Financial Statements for the year ended December 31, 2015

Consolidated Financial Statements for the year ended December 31, 2015 of HS
Orka hf. (the “Company”) were approved at a Board of Directors meeting on 22
February 2016. The financial statements of HS Orka hf. are prepared in
accordance with International Financial Reporting Standards as adopted by the
European Union and are stated in ISK. The financial statements can be found on
the Company´s website: http://www.hsorka.is 

Company EBITDA increased by 1% to ISK 2,774 million (2014: ISK 2,738 million),
despite a 2% reduction in annual operating revenues to ISK 7,350 million (from
ISK 7,479 in 2014). Both revenue and operating cost decreased by 723 million
year on year, due to the transfer of certain employees directly to HS Veitur,
when formerly the employees costs were recharged and recorded in income.
Excluding the impact of the transfer, revenue increased year on year largely
due to increased retail sales. 

Loss for the year was ISK 247 million (2014: profit of ISK 736 million), due
predominantly to the non-cash fair value change of embedded derivatives in
power purchase agreements (linked to aluminum price) which resulted in a loss
of ISK 3,248 million compared to loss of ISK 1,556 million in 2014. 

A total comprehensive profit of ISK 2.633 million was recorded against ISK 679
million in 2014. The increase was largely driven by recognition of ISK 3,040
million as a result of the revaluation of the Svartsengi Power plant on 31
December, 2015 based on projected cash flows resulting from current plant
output and projected power prices. 

The Company’s equity ratio is 58.6% compared to 59.7% at year-end 2014.

Further information can be provided by Ásgeir Margeirsson, Managing Director of
HS Orka hf., tel. 520 9300 / 855 9301.

Attachments:

Financial Statement 2015.pdf