CORRECTION: Increased Environmental Investments and Firm Cash Position

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Reykjavik, ICELAND

Reykjavik, 2014-10-31 17:00 CET (GLOBE NEWSWIRE) -- Investments will increase considerably in the next years according to Reykjavik Energy’s (RE) recently approved consolidated budget. Prominent are investments in environmental projects but also improvements in utility systems. In year 2015, ISK 10.3 billion are budgeted for investments, compared to estimated ISK 6.4 billion this year.

With the implantation of Reykjavik Energy’s and the Company’s owners’ Plan, early 2011, the operations results stabilized. Expenses have been curbed and income is steady. The Plan’s aim was to improve RE’s cash position by more than ISK 50 billion in years 2011 through 2016. Thereof, ISK 30 billion were by internal actions and ISK 20 billion from external sources, i.e. loans from owners and by amending tariffs. All aspects of the Plan are on target and have – along with other measures – returned results above target.

The Plan supposed postponement of extensive sewerage investments. This environmentally important project will resume in year 2015 and be concluded in 2016. Also, the construction of a new conveying station in Akranes has commenced, the purpose of which is enabling fish factories to convert their operations from fossil fuels. The renewal of the important Deildartunga heating pipeline will continue.

To enhance the sustainability of geothermal harnessing in the Hengill area, RE’s subsidiary Our Nature plc., has undertaken connecting the company’s boreholes by Hverahlid to the Hellisheidi Power Plant. That is next year’s most extensive investment regarding power plant operations.

Debts will continue to decrease, according to the budget. In year 2015, RE’s equity will increase by around ISK 7 billion and at year end an equity ratio of 34.6% is planned.

The attached consolidated budget of Reykjavik Energy for year 2015 and long-term plan for years 2016 through 2020 is the first made following the statutory unbundling of the company’s operations. It has been approved by the respective subsidiaries’ Boards of Directors as well as by the parent company’s BoD. It is now being considered by The City of Reykjavik as a part of the City’s consolidated budget.

         Mr. Bjarni Bjarnason
         Tel. + 354 5167707


RE consolidated budget 2015 and five year plan 2016-2020.pdf