Reykjavik, 2015-11-06 16:25 CET (GLOBE NEWSWIRE) -- Reykjavik Energy‘s (Orkuveita Reykjavikur; OR) Board of Directors today passed a proposal to the Company‘s owners regarding conditions for payment of dividends. The motion is now being considered by the municipalities that own Reykjavik Energy; The City of Reykjavik, the Township of Akranes, and the Municipality of Borgarbyggd.
The proposal is made in accordance with Reykjavik Energy‘s owners‘ policy, which presumes the BoD passes such a motion for owners‘ ratification. The proposal includes financial parameters that shall be fulfilled before and after dividends are paid.
These are the conditions:
| Financial conditions | 2016-2018 | 2019- |
| 1. Current ratio | >1,0 | >1,0 |
| 2. Equity ratio | >35% | >40% |
| 3. FFO interest coverage | >3,5 | >3,5 |
| 4. RCF / net debt | >11% | >13% |
| 5. FFO / net debt | >13% | >17% |
| 6. Max dividend payment | ≤50% | ≤50% |
According to The Plan, a series of operational measures that OR has operated by since 2011, no dividends are paid in its duration. The Plan is in effect until year-end 2016.
Contact:
Bjarni Bjarnason
CEO
+ 354 516 7707