Reykjavik, 2015-03-23 16:33 CET (GLOBE NEWSWIRE) -- Stable income and sustained rationalization in operations have returned Reykjavik Energy (RE-Orkuveita Reykjavikur) similar results for year 2014 as in the two previous years. RE has paid down its debt by approximately ISK 20 billion in year 2014. At year’s end, RE’s equity was 99.4 billion ISK and equity ratio reached 33.2%.

RE’s operating expenses were ISK 13.7 billion in 2014. In year 2010 that amount was ISK 14 billion or ISK 300 million less. If these amounts are CPI-adjusted, the decrease in operating expenses is ISK 2.3 billion. 

At year-end 2014, Reykjavik Energy’s Plan had returned ISK 49.6 billion. That is 97% of the total amount scheduled from its initiation in Q2 2011 until year-end 2016.

2014 was the first year of operations since the mandatory unbundling of Reykjavík Energy. The consolidated financial statements, which were approved today by Reykjavík Energy’s Board of Directors, is presented in the same manner as before unbundling. Thus, continuity in figures is preserved.

As assumed in The Plan, considerable investments are planned for year 2015, both in the utilities and power plants. Renewal of sewerage in West Iceland will resume as well as maintenance of hot water mains. The single largest project of the year is connecting the Hellisheidi Power Plant to the Hverahlid steam-fields, thus improving the environmental and financial sustainability of the plant.  

Significant increase in equity

  • RE’s operating expenses in 2014 were lower than in 2010. Real terms decrease is approximately ISK 2.3 billion.
  • EBIT was ISK 15.7 billion for 2014.
  • Bottom-line results were a profit of ISK 8.9 billion for 2014.
  • EBITDA amounted to ISK 24.8 billion in 2014.
  • Net interest-bearing debt decreased by ISK 14.2 billion. Net interest-bearing debt at year-end 2014 was approximately ISK 172 billion, down from ISK 231 billion five years ago.
  • Equity ratio increased from 28.6% in 2013 to 33.2% in 2014.
  • RE’s equity has increased by 23% from 2013 and by 64% since two years ago.
  • Reykjavik Energy will not pay dividends for the year as dividends were suspended for the duration of The Plan.

Bjarni Bjarnason, CEO of Reykjavík Energy:

The Plan and our strong commitment in pursuing its goals have returned Reykjavik Energy stable and good financial results in recent years. Effective risk management and resolve in operations have further increased the predictability of operational performance. Total debt is rapidly decreasing and equity is becoming acceptable. This has been noted in improved independent credit ratings of Reykjavík Energy. Now, it’s pivotal to remain alert and keep ourselves to the standards we have set in prudency. RE’s Owners’ Policy, revised in 2014, is a good compass to follow in that respect.

2014 was the first year after Reykjavik Energy’s mandatory unbundling. The financial statements show that the Company’s employees and management have not been flustered in any way by the changes. Our business has been stably conducted, services reliable, and results according to budget.

Managers’ overview

All amounts are in million ISK. 2010 2011 2012 2013 2014
Revenues 27,916 33,626 37,905 39,209 38,679
Expenses -13,964 -12,391 -12,861 -13,126 -13,681
EBITDA 13,951 21,235 25,044 26,084 24,845
Depreciation -7,962 -8,881 -10,371 -8,927 -9,152
EBIT 5,989 12,354 14,673 17,156 15,693
           
Result of the period 13,729 -556 -2,295 3,350 8,871
           
Cash flow statement:          
Received interest income 150 127 147 209 709
Paid interest expense -4,030 -5,690 -7,093 -6,308 -4,574
Net cash from operating activities 11,588 16,930 18,935 20,033 22,084
Working capital from operations 10,595 17,231 19,880 19,675 18,881

 

         Contact:
         Mr. Bjarni Bjarnason
         CEO
         Tel: +354 516 7707