Stability in results of operations characterize Orkuveita Reykjavíkur’s (OR; Reykjavík Energy) consolidated interim financial statements for Q1 2018. The company’s Board of Directors approved the statements today. In addition to the parent company, the OR group comprises Veitur Utilities, ON Power and Reykjavík Fibre Network.
Despite a reduction of water and electricity tariffs, revenues increased in Q1 2018 compared to the previous year. Increased economic activity in Iceland play a part in that and appear for example in increased heating revenues. Fluctuations in the price of aluminum are apparent in calculated values in the interim financial statement. In Q1 2018 the effect was unfavorable by ISK 5.2 billion while in Q1 2017 the effect was favorable by ISK 5.3 billion. However, the result of Q1 2018 was a profit of ISK 390 million.
A proposal for dividends
OR’s Board of Directors also approved today a proposal to OR’s general meeting to be held in June for a payment of dividends for year 2017 in the amount of ISK 1,250 million.
Bjarni Bjarnason, CEO:
Orkuveita Reykjavíkur’s basic operations are very solid. The interim financial statements reflect increased economic activity in Iceland; revenues increase but also operating cost and we have to stay vigilant. We are developing the basic services the companies within the group provide as can be seen in energy-shift in transportation and the implementation of smart-metering is on the horizon.
Managers’ Overview
| ISK million | Q1 2015 | Q1 2016 | Q1 2017 | Q1 2018 |
| Revenues | 11,110 | 11,336 | 11,822 | 12,263 |
| Expenses | (3,880) | (4,079) | (4,138) | (4,511) |
| thereof energy purchase and transmission | (1,868) | (1,635) | (1,701) | (1,730) |
| EBITDA | 7,230 | 7,257 | 7,685 | 7,752 |
| Depreciation | (2,399) | (2,406) | (2,384) | (2,287) |
| EBIT | 4,831 | 4,850 | 5,301 | 5,464 |
| Result of the period | 3,276 | 2,535 | 6,039 | 390 |
Orkuveita Reykjavíkur's key financial figures
Contact:
Bjarni Bjarnason
CEO
+354 516 6100
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