Source: Orkuveita Reykjavíkur
The Plan returns ISK 6.9 bn above target
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