Press Release
Reykjanesbær, November 12 2014
HS Orka hf announces Condensed Interim Financial Statements for the first nine months of 2014
Condensed Interim Financial Statements for the nine months ended 30 September 2014 of HS Orka hf. were approved at a Board of Directors meeting on 12 November 2014. The Financial Statements of HS Orka hf. are prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union and are stated in ISK. The Financial Statement can be found on the company´s website: http://www.hsorka.is
Operating revenue for the period 1 January – 30 September 2014 increased 3% to ISK 5,311 million compared to ISK 5,142 million for the same period in 2013, primarily due to increased retail sales. Profit for the period amounted to ISK 1,198 million, with the comparable number for 2013 being a loss of ISK 302 million. Total comprehensive profit amounted to ISK 1,142 million compared to a comprehensive loss of ISK 360 million in the first nine months of 2013.
Changes in the value of the embedded derivative in power purchase agreements (linked to aluminum price) was negative for the period of ISK 177 million in the first nine months of 2014, compared to a negative change of ISK 3,043 million in the same period in 2013. This was partially offset by a currency gain of ISK 112 million, versus a currency gain of ISK 1,008 million in the first nine months of 2013.
Equity ratio increased to 60.7% against 58.0% at year end 2013, reflecting continued paydown of debt.
Company operations are going well and the company‘s EBITDA remained strong at ISK 1,963 million in the first nine months of 2014, which is a 3% increase compared to same period 2013 where the EBITDA was ISK 1,907. The EBITDA increase was primarily driven by the revenue increase mentioned above, and was offset by a 1% increase operating costs (ISK 158 million between the periods) and a decrease in aluminum prices. An increase in power purchases and transmission costs during the period was the primary driver for the cost increases, as plant operating costs actually decreased. Other operating costs are higher than in same period 2013 predominantly due to costs of preparing for the arbitration hearings connected to the power sales contract with Norðurál Helguvík. Those hearings are expected to take place in spring 2016.
Further information is provided by Ásgeir Margeirsson, Managing Director of HS Orka hf., tel. 520 9300 / 855 9301
