Reykjavík, 2016-05-23 17:01 CEST (GLOBE NEWSWIRE) -- Operating results of Orkuveita Reykjavíkur (OR; Reykjavík Energy) are stable and results of Q1 2016 are similar to that of preceding years. Revenues have increased but that has been offset by increased wages due to results of recent long-term agreement in the Icelandic labour market. EBIT for Q1 2016 amounted to ISK 4,850 million compared to ISK 4,831 million in Q1 2015. OR’s consolidated financial statements for January through March 2016 were approved by the Board of Directors today.
Bottom-line results decreased mainly because of lower aluminium price and exchange rates of USD. That affects the estimated value of power purchase agreements which is reflected in financial transactions in the statement of operations. Q1 2016 profits were ISK 2.5 billion compared to ISK 3.3 billion in Q1 2015.
Bjarni Bjarnason, CEO
The operations of Orkuveita Reykjavíkur are solid, results stable and the finances are gradually improving. We are in the Plan’s final year. We have already surpassed its main financial goal and now we are sighting that conditions for payment of dividends will be fulfilled. We are in the process of evaluating all aspects of our operations and its results will be the foundation for our long-term strategy following the conclusion of the Plan.
Managers’ overview
| Amounts are in ISK million | Q1 2012 | Q1 2013 | Q1 2014* | Q1 2015 | Q1 2016 |
| Revenues | 10,571 | 10,650 | 11,110 | 11,336 | |
| Expenses | (3,386) | (3,361) | (3,880) | (4,079) | |
| thereof energy purchase and transmission | (1,290) | (1,441) | (1,868) | (1,635) | |
| EBITDA | 7,185 | 7,288 | 7,230 | 7,257 | |
| Depreciation | (2,295) | (2,234) | (2,399) | (2,406) | |
| EBIT | 4,890 | 5,054 | 4,831 | 4,850 | |
| Result of the period | (3,998) | 4,166 | 3,276 | 2,535 | |
| Cash flow statement: | |||||
| Received interest income | 58 | 88 | 172 | 2 | |
| Paid interest expense | (1,258) | (1,113) | (989) | (679) | |
| Net cash from operating activities | 4,713 | 5,169 | 5,246 | 4,998 | |
| Working capital from operation | 5,316 | 5,289 | 6,145 | 6,129 |
*No financial statements were issued for Q1 2014 because of the unbundling of OR.
Note: Attached is OR’s 2015 Financial Report, English version, originally published in Icelandic March 2nd 2016.
Contact:
Bjarni Bjarnason
CEO
+354 516 7707
