Reykjavik, 2012-05-25 17:55 CEST (GLOBE NEWSWIRE) -- Operating profits (EBIT) of Orkuveitu Reykjavikur (OR – Reykjavik Energy) were ISK 4.9 billion in Q1 2012. These results are an improvement by 42% compared to Q1 2011. Unfavourable development of external factors – namely aluminium price and ISK exchange rates – continue to affect OR‘s overall profits.
Between Q1 in years 2011 and 2012, OR‘s operating income increased by a fifth while expenses merely by 5%. The reasons are successful implementation of a comprehensive financing Plan, approved by the Board of Directors and OR‘s owners in March 2011. Increased cost between the comparative periods in 2011 and 2012 is less than the increase of the index at the same time, even though there have been various increases in prices. Increased revenue is explained by tariff increase as part of the Plan.
The attached OR Q1 2012 consolidated interim financial statements were approved by the Board of Directors today. They have been prepared in accordance with International Financial Reporting Standards (IFRS).
Bjarni Bjarnason, CEO of Orkuveita Reykjavikur:
These results indicate that OR’s day-to-day operations are in good order. The progress made in revenues and costs shows that our staff, as well as our customers, have contributed to the turnaround of OR’s operations. Recent feedback by OR’s financiers convinces us that these changes are duly appreciated.
OR’s debt are still a major issue and the unfavourable development of external factors keeps us alert and proves that resilience is needed in the implementation of the Company’s ambitious financing plan.
Managers’ Overview
All amounts are in ISK million at the price level for each year.
| Q1 Operations for each year | 2008 | 2009 | 2010 | 2011 | 2012 |
| Operating income | 6.079 | 6.541 | 7.422 | 8.693 | 10.571 |
| Operating expenses | (2.679) | (3.206) | (3.189) | (3.226) | (3.386) |
| EBITDA | 3.400 | 3.335 | 4.232 | 5.467 | 7.185 |
| Depreciation | (1.632) | (2.374) | (1.952) | (2.025) | (2.295) |
| Operating profits, EBIT | 1.769 | 961 | 2.281 | 3.442 | 4.890 |
| Realised financial income and (expenses) | (1.921) | (916) | (191) | (431) | (975) |
| (Loss) profit before unrealised financial income | (152) | 45 | 2.090 | 3.011 | 3.915 |
| Unrealised financial income | (20.766) | 1.638 | 8.034 | 876 | (9.186) |
| (Loss) profit before income tax acc. interim financial statements | (20.919) | 1.684 | 10.123 | 3.887 | (5.271) |
| Income tax | 3.676 | 129 | (2.936) | (1.569) | 1.272 |
| (Loss) profit | (17.243) | 1.813 | 7.187 | 2.318 | (3.999) |
Bjarni Bjarnason
CEO
+354 516 7707.
