Orkuveita Reykjavikur (Reykjavik Energy) Consolidated Financial Statements for the year 2009

The consolidated financial statements for Orkuveita Reykjavíkur, which were
confirmed today, outline a great change in the financial position of the
company. Operational profits for the last three quarters of 2009 were ISK 8.8
billion. This is mainly due to favourable changes in the price of aluminium. 
Orkuveita Reykjavikur´s EBITDA for the year 2009 was ISK 13,0 billion.
Orkuveita Reykjavikur´s loss for the year 2009 was ISK 2.5 billion mostly due
to the weakening of the Icelandic Krona by 7.6% during the year. The year 2008
resulted in a loss of ISK 73.0 billion. 
Increased revenues in foreign currency enable the company to service its
payments related to foreign currency denominated loans despite currency
fluctuations. 
Orkuveita Reykjavikur Financial Statements are in accordance with International
Financial Reporting Standards as adopted by the EU. 
Main highlights of the year 2009

Orkuveita Reykjavikur operations returned a loss of ISK 2.516 million for the
year 2009. The year 2008 resulted in a loss of ISK 73.037 million. 
 
Operating revenues for the year amounted to ISK 26.013 million. Operation
revenues for the year 2008 amounted to ISK 24.168 million. 

EBITDA of the company for the year 2009 was ISK 12.970 million and ISK 11.652
million for the year 2008. 
 
Financial income and expenses were negative for the year and amounted to ISK
8.843 million. The amount for the year 2008 was negative by ISK 92.523 million. 
 
Total assets 31 December 2009 were ISK 281.526 million and were ISK 259.373
million at year-end 2008. 
 
Equity of the company 31 December 2009 was ISK 40.657 million and was ISK
48.359 million at year-end 2008. 
 
Total liabilities of the company 31 December 2009 was ISK 240.868 million
compared to ISK 211.015 million at year-end 2008. 
 
The equity ratio was 14.4% as at 31 December 2009 compared to 18.6% at year-end
2008 
 
Other issues
In 2009 a dispute with Hafnafjordur municipality regarding the company´s share
in HS Orka has come to a favourable ending. This agreement has resolved a
considerable risk for Orkuveita Reykjavikur. 
 

Prospects
In spite of turbulence on Icelandic and foreign financial markets the
operations of Orkuveita Reykjavikur is solid. The company continues to work on
the enlargement of the power plant at Hellisheiði. The Company intends to
commission the plant's 4. phase, production of hot-water, late this year, and
the 5. phase, production of 90 MW electricity, in the latter half of 2011. 

On 20 November 2009 Orkuveita Reykjavikur signed a loan agreement with the
European Investment Bank with favourable terms for financing half of the 5.
phase cost and for half of the cost of the intended 90 MW power plant at
Hverahlid. 

Due to uncertainty in the Icelandic economy, Orkuveita Reykjavikur has reduced
its capital expenditures. The company has also taken actions to curtail
operating costs, both regarding salary payments and other operational expenses. 

The value of the Icelandic Krona has been relatively steady in Q4 2009 and has
strengthened in Q1 2010 by 2.5%. Orkuveita Reykjavikur´s future equity position
will be determined largely by the position of the Icelandic Krona in regards to
foreign currency. 

Further information gives Hjörleifur B. Kvaran, CEO Orkuveita Reykjavikur,
tel.: +354 516 6000