Orkuveita Reykjavikur's (OR; Reykjavík Energy) consolidated financial statements for 2018 reflect solid finances and sound operations in spite of fluctuating  external conditions. This is the result of a firm grip on operating cost and growing revenues during the year stemming from increased energy production and demand for utility services. Operating income grew by 5.2% compared to 2017, while operating expenses increased by only 0.1%. Operating profit, EBIT, grew by more than 1 billion ISK between 2017 and 2018.

OR’s Consolidated Financial Statements were approved by the Board of Directors today. The BoD also decided to propose to the Company’s annual general meeting a payment of dividend of 1,500 million ISK. Along with the financial statements, OR simultaneously publishes its Annual Report. It transparently describes the environmental aspects of the operations in 2018, climate effects, social factors, governance, as well as finances over the course of the year.

Click here to view OR’s Annual Report 2018

More than 100 billion cubic metres of hot water

A cold and rainy year for Reykjavik Energy's main operating area diminished the production of cold water – used for example for watering – while for the first time, geothermal heating water demand exceeded 100 million cubic metres. There are considerable investments ahead to meet the growing need for water for district heating and to ensure the quality of drinking water from the Heidmörk water reserves. In Iceland, construction of new housing is growing and the number of tourists and customers in the competitive markets are on a constant increase as well. Furthermore, balancing the energy production at the Hellisheidi Geothermal Power Plant and the capacity of the geothermal areas that it utilises is continuously improving, resulting in increased energy production. In sum, increased production and increased demand for the services of the companies within the OR Group – Veitur Utilities, ON Power and Reykjavik Fibre Network – are yielding growing revenues year-on-year. Aluminium prices declined in 2018, the impact of which is calculated in the financial statements. Nonetheless, the bottom-line result for the year was positive by nearly 6 billion ISK. This is a significant change from the previous year when the development of aluminium prices was favourable.

Bjarni Bjarnason, CEO

Once again, we see a solid grip on the operations of the Reykjavik Energy Group, delivering good results for the companies. The culture that we have worked so hard to institute regarding cost is one of the most valuable assets that Reykjavik Energy possesses. This has been supported by our targeted work on hedging which has allowed us to manage changes in external conditions. These allow us to present OR’s consolidated financial statements to the business owners with considerable pride.

As before, customers will benefit from favourable returns. Based on the decisions of the municipalities that own Reykjavik Energy, customers will benefit from profit surpluses. Prices of many of OR’s services have been reduced or have remained unchanged in recent years. If we maintain the sharp focus we have on our operating expenses, other things equal, this trend will continue.

Our statements for the year 2018 contain more than finances. We set out our social responsibilities and environmental aspects of our operations too. The report seeks to lay the ground for discussion of the areas we should improve.

Reykjavík Energy and the SDGs

The OR 2018 Annual Report is an integrated report, compiled in accordance with the ESG standards co-developed by stock exchanges and the United Nations. It describes climate impacts of OR's operations, other environmental impacts, corporate governance, and various matters of social responsibility. The OR 2018 Annual Report is only published on-line.

Managers’ Overview

Amounts in ISK million      
Revenues39,209  38,526  40,357  41,423  43,666  45,916 
EBITDA26,084  24,845  25,174  25,361  26,380  28,617 
EBIT17,157  15,693  14,428  14,968  17,318  18,346 
Income tax(7,572)(2,004)587 (4,702)(5,328)1,380
Result of the period3,350  8,871  4,176  13,352  16,072  5,978 
Other metrics      
Direct release of CO2-equivalent – Scope 1 (tonnes)60,28055,98252,04543,90340,38643,509
Sequestration of H2S at Hellisheiði Plant (%)0%13%26%47%68%75%
Electricity generation (GWh)3,4223,4433,2493,4113,4733,507
Hot water production (Million m3)9290959194102
Potable water production (Million m3)272929302928
Gender pay-gap 4.6%3.7%2.3%2.1%(0.3%)(0.0%)
Women among managers37%44%47%49%51%54%


Bjarni Bjarnason


+354 516 6100