The Plan returns ISK 6.9 bn above target

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| Source: Orkuveita Reykjavíkur
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Reykjavik, 2014-05-16 16:01 CEST (GLOBE NEWSWIRE) -- Accumulated returns of Reykjavik Energy‘s Plan – series of actions initiated in 2011 – now amount to ISK 45.2 bn and surpass targets by ISK 6.9 bn. All parts of the Plan have surpassed targets. The Plan is intended to return a total of ISK 51.3 bn. by year-end 2016. By these results, 88% of that amount has been realized. The attached Progress Report on the Plan was introduced to the Company‘s Board of Directors today. Note that this time the report is based un unaudited operation result.

The Plan – ISK bn. The Plan Result
  2011-2016 2011-2014 F1 2011-2014 F1
Reductions of investments in utility systems 15,0 7,8 10,4
Sale of assets 10,0 8,4 8,9
Reductions in operating cost 5,0 2,3 3,3
Reduction in other investments 1,3 0,7 1,2
Postponement of investments in sewerage 0,0 2,9 3,3
Total 31,3 22,2 27,1
Subordinated loan from owners 12,0 12,0 12,0
Increased revenues by higher tariffs 8,0 4,2 6,0
Total 20,0 15,9 18,0
The Plan - Total 51,3 38,3 45,2

 

At the Board‘s meeting, founding balance sheets were approved for the Reykjavik Energy‘s subsidiaries that commenced operations January 1st 2014, when law demanding unbundling of energy companies came into effect. These do not affect the economy of Reykjavik Energy as all the subsidiaries are entirely owned by RE. In accordance with Reykjavik Energy’s Owners’ Policy, the BoD’s resolution regarding the balance sheets was passed pending the owners’ ratifications.

Balance sheet January 1st 2014 in ISK ,000 Consolidated Orkuveita Reykjavíkur – municipal partnership OR-Assets pltd. ON pltd. OR Utilities pltd. OR Water works and sewerage, partnership
Assets 283,107,398 280,667,943 65,623,816 107,969,091 74,241,578 59,540,156
Liabilities 202,138,301 199,698,848 8,000 69,195,714 47,395,140 33,795,245
Equity ratio 29% 29% 100% 36% 36% 43%

 

Because of these changes in the operations, Reykjavik Energy will not issue audited financial statements for Q1 2014. These operation results for the quarter were presented to the Company‘s Board of Directors today.

All amounts are in ISK ,000 Result Budget Difference Difference %
Revenues 10,206,952 10,069,461 136,991 1.4%
Expenses 4,226,098 4,601,950 -375,852 8.2%
EBITDA 5,979,853 5,467,511 512,342 9.4%

 

         Contact:
         Bjarni Bjarnason
         CEO
         +354 5166000