Reykjavik, 2012-08-23 17:46 CEST (GLOBE NEWSWIRE) -- Orkuveita Reykjavikur´s (OR – Reykjavik Energy) interim financial statements for Q2 2012 echo the positive results of Q1 2012. Operating results (EBIT) amounted to ISK 8.1 billion. That is an ISK 1.8 billion improvement on the comparative period 2011. This stems from curtailing in all aspects of OR’s operations and increased revenues. Revenues increased by 16% between Q2 2011 and Q2 2012 while expenses increased by 6%. The results are in line with the action plan between OR and its owners.
The development of ISK exchange rates and the price of aluminium in the first half of 2012 continued to be unfavourable. Derived effects of these, and other unrealised expenses and income on financial assets and liabilities, were negative by ISK 8.5 billion and total results for the period therefore negative by ISK 0.9 billion. The change in currency rates has been favourable between accounting date and reporting date while the price of aluminium has declined. These two factors, along with the changes in interest rates, are the main uncertainties for OR. Accumulated positive effects of changes in currency rates and aluminium price since accounting date amount to ISK eight billion, other factors unchanged.
The interim financial statements of Orkuveita Reykjavikur for the first half of 2012 were approved by the Board of Directors today. The financial statements are in accordance with International Financial Reporting Standards (IFRS).
Bjarni Bjarnason, CEO:
The thorough streamlining of OR´s operations shows in better results as intended by the implementation of the Company’s action plan. Solid operations have enabled us to renegotiate repayment dates, thus easing the burden of servicing our debt. Newly made hedge contracts reduce the effect of externalities beyond our control. Unfavourable development of these uncertainties can hit the Company hard and we need to hedge up to a reasonable point.
At this time, I especially welcome that the owners of Orkuveita Reykjavikur – the municipalities of Reykjavik, Akranes and Borgarbyggd – have approved a new owners’ policy for the Company. It is very much in line with what we have been implementing within the Company – clear roles, clear objectives and clear responsibility for these being reached.
Managers’ Overview
All amounts are in ISK million and on each year’s price level
| Operations for the first half of the year | 2008 | 2009 | 2010 | 2011 | 2012 |
| Revenues | 11,369 | 11,925 | 13,561 | 16,676 | 19,287 |
| Expenses | (5,553) | (6,233) | (6,505) | (6,164) | (6,560) |
| EBITDA | 5,816 | 5,692 | 7,056 | 10,512 | 12,727 |
| Depreciation | (3,308) | (4,702) | (3,902) | (4,136) | (4,585) |
| EBIT | 2,508 | 990 | 3,154 | 6,376 | 8,142 |
| Realised financial income and (expenses) | (2,157) | (3,295) | (1,218) | (1,418) | (1,629) |
| Result before unrealised financial income and (expenses) | 351 | (2,304) | 1,936 | 4,957 | 6,513 |
| Unrealised financial income and (expenses) | (20,017) | (10,805) | 4,155 | (9,741) | (8,455) |
| Result before income tax according to the interim statements | (19,666) | (13,109) | 6,092 | (4,784) | (1,941) |
| Income tax | 3,260 | 2,494 | (974) | 962 | 1,017 |
| Result of the period | (16,406) | (10,615) | 5,118 | (3,822) | (924) |
For further information:
Bjarni Bjarnason
CEO
+354 516 7707
