2015-08-24 18:42:04 CEST
2015-08-24 18:43:06 CEST
REGULATED INFORMATION
Orkuveita Reykjavíkur - Financial Statement Release
Reykjavik Energy‘s 'Plan' yields ISK 7 billion above target
Reykjavik, 2015-08-24 18:42 CEST (GLOBE NEWSWIRE) -- Reykjavik Energy's
(RE-Orkuveita Reykjavikur) Plan had, at mid-year 2015, returned ISK 7 billion
above its goal set in Plan-target in the spring of 2011. The bottom-line
results in the company's consolidated financial statements for H1 2015,
approved by the Board of Directors today, were a profit of ISK 2.3 billion.
60% of Plan's returns through internal improvements
At the end of H1 2015, the Plan had returned RE a better cash position
amounting to ISK 52.3 billion. The Plan supposed results of ISK 45.1 billion at
that time. Lasting rationalisation of operating cost continuously increases the
Plan's returns. On the other hand, in years 2015 and 2016 considerable
investments in utility systems, which were postponed as a part of the Plan, are
to be entered into.
Composition of the Plan's Yield
The attached graph depicts the share individual components of RE's Plan have
yielded since its initiation April 1st 2011 until mid-year 2015. External
factors have contributed 39%, thereof owners' loans 23% and increased tariffs
16%. Internal measures are responsible for some 60% og the ISK 52 billion
improved cash position. Decreased and postponed investments account for 34% and
sale of assets 17%. Most importantly, permanent reduction in operating cost
have already returned ISK 5 billion, which amounts to 10% of the Plan's total
returns.
Increasing investments
This year has seen considerable investment in utility systems and existing
power plants. Additionally, work on several projects that were postponed by RE
following the financial crisis, has been resumed. The principal projects are
the connection of the Hellisheidi Power Plant to the Hverahlid geothermal field
and new sewerages in West-Iceland. Maintenance investments in RE's utilities
will increase and reach a balanced level by year-end 2016.
Fluctuations in electricity purchases
Reykjavik Energy's general operating costs have been significantly reduced
since the Plan's initiation. Besides selling electricity generated in the
Group's own power plants, it also purchases electricity from Landsvirkjun
(National Power Company of Iceland) for resale. The Group also pays for power
transmission over the national grid. Because of various internal and external
factors, significant fluctuations are in these purchases that appear in the
Group's total operating cost. The increase between H1 2014 and H1 2015 in these
purchases were by 28%.
Bjarni Bjarnason, CEO
The operations of the companies within the Reykjavik Energy Group are stable
and solid and improved risk management has further reduced fluctuations in
results. All RE's staff strives for rationality and prudence in operations.
Thus, we fulfil RE's role of providing our customers with reliable services at
minimum cost.
Managers' overview
Operations for the first half of 2011 2012 2013 2014 2015
the year
All amounts are in ISK ,000,000 at
each year's price level
Revenues 16,676 19,287 20,111 18,234 20,479
Salaries and other expenses (3,661) (4,183) (4,011) (3,849) (4,187)
Electricity purchases and (2,502) (2,377) (2,668) (2, 530) (3,256)
transmission
EBITDA 10,512 12,727 13,432 11,855 13,036
Depreciation (4,136) (4,585) (4,496) (4,331) (4,799)
EBIT 6,376 8,142 8,936 7,524 8,237
Result of the period (3,821) (924) 3,736 3,831 2,260
Cash flow statement:
Received interest income 58 40 81 359 252
Paid interest expense (2,452) (2,805) (2,473) (2,560) (2,215)
Net cash from operating activities 8,928 9,988 10,059 10,953 11,042
Working capital from operation 8,886 10,067 11,174 9,533 10,501
Contact:
Bjarni Bjarnason
CEO
+354 516 7707
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