CORRECTION: Good results at Reykjavik Energy for Q1 2015

Reykjavik, ICELAND

Reykjavik, 2015-07-22 10:39 CEST (GLOBE NEWSWIRE) -- Note: An English version of a report on RE's treasury and risk management in year 2014 has been added, previously only available in Icelandic.

Reykjavik Energy’s (Orkuveita Reykjavikur, RE) operations returned a profit of ISK bin 3.3 in Q1 2015 and the company’s equity ratio has improved since the beginning of the year. Reykjavik Energy’s efforts in treasury and risk management has proven commendably successful and today the Company issues a report on goals in this respect, success in attaining them and challenges being worked on.

Reykjavik Energy’s consolidated interim financial statements were approved by the Board of Directors today. It is prepared in accordance with the international IAS 34 standard. Because of the unbundling of RE at the beginning of last year, a Q1 2014 financial statements was not issued. Thus, no comparison with previous year is included in these financial statements.

Steady results, according to Plan

With increased stability in RE’s governance, austerity in operations and improved risk management, the Company’s revenues and expenses have become increasingly foreseeable and operating results have solidified. The blueprint devised by RE’s owners and BoD in 2011, called The Plan, has returned intended results and then some. Consequently, equity ratio has improved and stood at 34.6% at March 31st 2015.

It should be pointed out that RE’s results tend to be most favorable in Q1 each year. It is probably that will also go for 2015 since unfavorable weather has delayed various construction works.

Transformation of treasury and risk management

The quality of treasury and risk management at RE has been revolutionized in recent years. Today, the Company publishes a report in the issue. The purpose of the publication is to improve the transparency of this important part of the operations and provide interested parties with information that can enhance professional discourse on it. The report (temporarily only available in Icelandic) covers actions taken until year-end 2014. It depicts how Reykjavik Energy has met the criticism expressed in a report by an ad-hoc owners’ audit committee, published in 2012.

         Mr. Ingvar Stefansson
         +354 516 6000


Reykjavik Energy financial statements Q1 2015.pdf PLAN Progress Report 2015 Q1.pdf REs Treasury and Risk Management 2014.pdf