Orkuveita Reykjavikur's Consolidated Condensed Financial Statements Q3 2011

Reykjavik, 2011-11-28 13:40 CET (GLOBE NEWSWIRE) -- Operations of Orkuveita Reykjavíkur (OR) returned better results for the first nine months of 2011 than for the comparative period last year. The reasons are increased revenues and curtailing in operations. Net cash from operating activities amounted to ISK 14.1 billions, an increase of ISK 4.3 billions from the comparative period 2010.

Unfavorable currency exchange developments and decrease in the price of aluminium in the first nine months of 2011, had a big negative effect on financial income and expense items. Those items change by ISK 35.6 billions between periods. Therefore the period shows loss of ISK 5.344 million compared to a profit of ISK 16.794 million in the same period 2010 when the development of the exchange rate was more favorable.

Orkuveita Reykjavíkur´s condensed consolidated interim financial statements for the period 1 January to 30 September 2011 were approved by the Board of Directors and the CEO at a board meeting today.

Orkuveita Reykjavikur’s condensed consolidated interim financial statements are in accordance with international financial reporting standards as adopted by the EU.

Bjarni Bjarnason, CEO of OR:

“It is good to see how well underway the Company is in gaining control of the operations and curtailing costs. This is a key factor for Orkuveita Reykjavikur to keep the objectives of the action plan, made in cooperation with the Company´s owners this spring. However, the development of the price of aluminium and exchange rate reveal that the Company is still too vulnerable to changes in external factors.”

Highlights of the period 1 January to 30 September 2011

Orkuveita Reykjavikur´s operations returned a loss of ISK 5.344 million in the first nine months of 2011. The comparative period 2010 resulted in a profit of ISK 16.794 million.

Operating revenues for the first nine months of 2011 amounted to ISK 24.388 million. Operating revenues for the first nine months of 2010 amounted to ISK 19.444 million.

EBITDA of the Company for the first nine months of 2011 was ISK 15.478 million and ISK 9.886 million in the comparative period 2010.

Financial income and expenses were negative for the first nine months of 2011 and amounted to ISK 17.157 million. The amount for the first nine months of 2010 was positive by ISK 18.395 million.

Total assets 30 September 2011 were ISK 291.735 million and were ISK 286.540 million at year-end 2010.

Total liabilities of the Company 30 September 2011 were ISK 237.093 million compared to ISK 233.694 million at year-end 2010.

Equity of the Company 30 September 2011 was ISK 54.642 million and was ISK 52.847 million at year-end 2010.

The equity ratio was 18.7% as at 30 September 2011 compared to 18.4% at year-end 2010.

Other issues and prospects

In March 2011 The Board of Directors and OR’s owners agreed upon an extensive action plan to secure a more solid foundation for the company‘s operation and activities for years 2011 through 2016. The plan comprises reduction and postponement of investments, economization, increased tariffs and a subordinated loan from the Company´s owners.

         Bjarni Bjarnason, CEO: +354 516 7707.