Orkuveita Reykjavikur (Reykjavik Energy) - Annual Financial Statements 2008



The Annual Financial Statements  of Orkuveita Reykjavikur  (Reykjavik
Energy) was approved by the Board of Directors 27 February 2009.

Orkuveita Reykjavikur's EBITDA in year 2008 was ISK 11.7 billion  and
increased by 17.5% from previous year.  It is the best EBITDA  result
in the  company's  10-year  history and  is  derived  from  increased
electricity wholesale in foreign currency.

Losses related to the depreciation of the Icelandic Krona amounted to
ISK 88.1 Billion  and had a  defining impact on  2008 results,  which
were negative by ISK  73.0 billion. Equity ratio  at the end of  year
2008 was 18.6%. From the beginning  of year 2009 to February 26,  the
Icelandic Krona has appreciated by  13.5%, equaling ISK 26.4  billion
positive gain.

Orkuveita  Reykjavikur's  liquidity  position  is  strong.  Increased
revenues in  foreign  currency  enable the  company  to  service  its
payments  related  to  foreign  currency  denominated  loans  despite
currency fluctuations.

Orkuveita Reykjavikur's Financial Statements  are in accordance  with
International Financial Reporting Standards as adopted by the EU.


Orkuveita Reykjavíkur - Financial Statements 2008
All amounts are in ISK millions
                                          2008        2007
Income Statement                     1.1-31.12   1.1-31.12

Operating revenue                       24.168      21.364
Operating expenses                    (12.517)    (11.449)
EBITDA                                  11.652       9.914
Depreciation, amortisation             (6.953)     (5.538)
Financial income and (expenses)       (92.523)       4.055
Results from associated companies        (276)       (121)
(Loss) profit before income tax       (88.101)       8.310
Income tax                              15.064     (1.794)
(Loss) profit of the year             (73.037)       6.516

Attributable to:
Equity holders of the Company         (72.960)       6.509
Minority interest in subsidiaries         (77)           7
(Loss) profit of the year             (73.037)       6.516

Net cash from operating activities       7.699       7.425



Balance Sheet                       31.12.2008  31.12.2007

Non-current assets                     252.618     182.284
Current assets                           6.755       9.207
Total assets                           259.373     191.491

Equity                                  48.359      88.988
Non-current liabilities                196.589      93.205
Current liabilities                     14.425       9.298
Equity and liabilities                 259.373     191.491

Ratios
   Working capital ratio                  0,47        0,99
   Equity ratio                          18,6%       46,5%

Attachments

Orkuveita Reykjavikur Financial Statements 2008.pdf