Despite some utility-tariffs were decreased at the beginning of year 2018, Orkuveita Reykjavíkur’s (OR; Reykjavík Energy) interim financial statements through Q3 2018 show increased revenues compared to year 2017. Principal reasons for this are increased economic activities in Iceland, more new housing, increased revenues from whole-sale of electricity and cold weather leading to more hot-water sales.

EBITDA and EBIT from OR’s operations improved compared to previous year. Impact of calculated figures in the statements, including derivatives, is however worse in 2018 than in previous year, affecting bottom line-results.

OR’s consolidated interim financial statements for Q3 2017 was approved by the Board of Directors today. It shows a bottom-line profit of ISK 5.9 billion for the first nine months of the year. The group comprises Veitur Utilities, ON Power and Reykjavík Fiber Network, besides the parent company.

Considerable investments are underway within the Group. In addition to connecting new housing to utility systems, Veitur Utilities are renewing principal hot and cold water mains, ON Power has been successfully drilling for steam at the geothermal power stations at Nesjavellir and Hellisheidi, and more homes are connected to the Reykjavík Fibre Network.

As presented in Orkuveita Reykjavíkur’s consolidated financial forecast, issued October 5th 2018, stability characterizes The Group’s operations and forecast results in the next years, despite considerable investment in the upgrade of utility systems and increased automation, i.e. in metering.

Managers’ Overview

ISK million  H1 2014H1 2015H1 2016H1 2017H1 2018
Revenues26,960 28,951 29,921 31,310 33,459 
Expenses (9,195) (10,718) (11,785) (11,744) (12,540)
  thereof energy purchase and transmission (3,644) (4,645) (4,555) (4,238) (4,404)
      
EBITDA17,766  18,234  18,136  19,566  20,919 
Depreciation (6,510) (7,172) (7,584) (7,051) (6,965)
EBIT11,256  11,061  10,551  12,515  13,954 
      
Result of the period7,879  3,093  9,368  10,512  5,924 

OR's key financial figures can be found on the on the Company's web-site: https://www.or.is/english/finance/key-financial-figures

 

Contact:

Ingvar Stefánsson

CFO tel: +354 516 6100

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