HS Orka hf. - Financial Statement Release

HS Orka hf Announces Interim Financial Statement for H1 2013

The Condensed Interim Financial Statements for 30 June 2013 of HS Orka hf. were
approved at a Board of Directors' meeting on 12th of August 2013. The Condensed
Interim Financial Statements of HS Orka hf. is prepared in accordance with
International Financial Reporting Standards (IFRS) and is in ISK. The Condensed
Interim Financial Statement can be found on the company´s website
http://www.hsorka.is 

Main Matters:

  -- The company‘s EBIDTA continues to be strong and was ISK 1,294 million for
     the period but was ISK 1,441 million in the same period 2012.
  -- Equity ratio is very strong, at the end of the period around 55%. 
  -- Net finance income and cost have a decisive influence on loss for the
     period which is 1,480 million. Decrease in embedded derivatives in power
     purchase agreement (connected to aluminum price) was around ISK 3,950
     million Currency gain was around ISK 1,126 million.
  -- EBIDTA is strong and increase in revenue was 4% or ISK 124 million and
     amounted to 3,590 ISK million for the period compared to ISK 3,466 million
     for the same period 2012. Operating cost increased around 14% or ISK 426
     million between the two periods. The increase in revenue is mainly due to
     more sales to the retail market, but decrease in aluminum prices weighs in
     the opposite direction. On the cost side there is an increase in Power
     purchases and Transmission cost. Maintenance drilling were performed on two
     wells, while there were no such drilling in same period last year. Then
     there is a rise in administration cost due to cost of arbitration regarding
     dispute over power purchase agreement with Norðurál Grundartangi.

 Further information is provided by Júlíus Jónsson, Managing Director of HS
Orka hf., tel. 422 5200/860 5208

Attachments:

HS Orka Financial Statement June 2013.pdf