Costs still decreasing

Operations of the Company ISK 173 million less than last year | EBIT ISK 8.9 billion in the first half of the year | Debts decrease by ISK 21.3 billion but are still extensive The “Plan” stands

Reykjavik, ICELAND

Reykjavik, 2013-08-29 16:08 CEST (GLOBE NEWSWIRE) -- Reykjavik Energy’s (RE – Orkuveita Reykjavikur) EBIT in the first half of the year 2013 amounted to ISK 8.9 billion but was ISK 8.1 billion in the same period 2012.

Restraint in the Company´s operating expenses is still returning less cost and salaries and other operational cost have decreased by ISK 173 million since last year. External factors have either been favourable or non-favourable in the period. Hedging has led to increased stability in the Company´s returns.

RE’s Board of Directors confirmed the Company´s interim financial statements today. They are prepared in accordance with International Financial Reporting Standards, as adopted by the EU.

External Factors

EBITDA of the Company in the first half of the year 2013 amounted to ISK 13.4 billion but was ISK 12.7 billion in the same period 2012. External factors, exchange rates against the ISK, price of aluminium and rates of interests, have developed each in its own way. The developments of exchange rates against the ISK have been favourable for the Company but the price of aluminium is low, having a negative effect on the financial part of the financial statements. Profit after taxes for H1 2013 amounted to ISK 3.7 billion.

Emphasis is still on restraining costs in the operations and repayment of debts. Debts have decreased by ISK 21.3 billion since year-end 2012. A result of this and the determination in implementing the Company’s and its owners’ Plan, RE has had the option of hedging the Company against changes in external factors in contracts made both with Icelandic and foreign financial institutes.

The Plan returns ISK 32.7 billion better cash position

The result of the Plan for the first half of the year 2013 amounted to ISK 8.9 billion, that is ISK 1.466 million more than set targets. The Plan that the Company´s BoD and owners adopted in spring 2011, has returned ISK 32.7 billion in RE’s improved cash position. That is ISK 3.3 billion in excess of original targets. All parts of the Plan are on schedule except for sale of assets.

Bjarni Bjarnason, CEO of Reykjavik Energy:

Regular operations of the Company are stably on track as the returns for recent periods show. The Company´s staff, the BoD and owners are all resiliently committed to the Plan and making efforts to ensure its success.

Our customers’ access to electricity, hot and cold water and sewerage is always a priority but ahead are important tasks besides regular activities. In accordance with law, the Company needs to finalise the unbundling of licensed and competitive operations by year-end 2013. We are also working on various projects to ensure sustainable operations of the power plant at Hellisheidi. It is important to resolve the challenges there while making sure we do not lose sight of the public service the Company is trusted to fulfil.

Managers´ overview

Operations for the first half of the year 2009 2010 2011 2012 2013
Revenues 11.925  13.561  16.676  19.287  20.111 
Expenses (6.233) (6.505) (6.164) (6.560) (6.679)
EBITDA 5.692  7.056  10.512  12.727  13.432 
Depreciation (4.702) (3.902) (4.136) (4.585) (4.496)
EBIT 990  3.154  6.376  8.142  8.936 
Realised financial income and (expenses) (3.964) (1.120) (1.388) (1.791) (1.447)
Result before unrealised financial income and (expenses) (2.973) 2.034  4.987  6.351  7.488 
Unrealised financial income and (expenses) (10.136) 4.058  (9.771) (8.292) (4.077)
Result before income tax according to the interim statements (13.109) 6.092  (4.783) (1.942) 3.411 
Income tax 2.494  (974) 962  1.017  325 
Result of the period (10.615) 5.118  (3.821) (924) 3.736  


         Mr. Bjarni Bjarnason, CEO
         +354 5166000


OR interim financial statements 30.6.2013.pdf Progress Report 2013 H1 29.8.pdf