Reykjavik, 2015-10-13 18:14 CEST (GLOBE NEWSWIRE) -- Resolve in the operations of Reykjavik Energy (RE) and its subsidiaries will return good results and solidified finances in coming years despite considerable investments. RE’s consolidated budget for year 2016 and a five-year forecast for years 2017 through 2021 has been approved by the Company’s Board of Directors. Principal subsidiaries are Utilities plc, ON Power plc, and Reykjavik Fiber Network ltd.
Comprehensive measures initiated in early 2011, known as The Plan, had already by mid-year 2015 returned better cash position than intended by year-end 2016. Enduring rationality in operations while revenues increase, return good operating results, decreasing debt, and solidified finances.
Investments by the RE group have gradually increased since year 2013. In year 2016, investment in a new sewerage in West-Iceland will be concluded, following which traditional maintenance and renewal investments are predominant by Utilities. Late year 2014, the decision was made to discontinue outsourcing of metering. It implies re-acquiring 150,000 meters for electricity and hot and cold water.
ON Power plc’s main investments are at the Hellisheidi Power Plant. There, steam supply is being maintained by connecting the plant with the Hverahlid geothermal area and through maintenance drilling. Other investments include various environmentally improving projects, i.e reduced emissions of hydrogen sulphide and general environmental house-keeping following a decade of construction in the Hengill area.
Reykjavik Fiber Network is currently concluding its roll-out of fiber to homes in Reykjavik. The roll-out commenced a decade ago and demand for fiber connections to each household are in a steadily growing demand. A number of municipalities have requested the cooperation of Reykjavik Fiber Network and the company’s investment plans reflect that demand for this highest quality connection available.
Reykjavik Energy’s budget for year 2016 and the five-year forecast for years 2017-2021 now goes to The City of Reykjavík for consideration as part of the consolidated financial plans for The City.
Contact:
Ingvar Stefánsson
CFO
+ 354 516 6000
