The operations of Orkuveita Reykjavíkur (Reykjavík Energy; OR) fared well in Q1 2019 with strong EBITDA and EBIT. During the quarter, development of externalities to the operations were mixed but bottom-line results for the OR group amounted to profits of ISK 3.9 billion. The group consists of Veitur Utilities, ON Power and Reykjavík Fibre Network, besides the parent company.

Large investments

In line with increased housing in the company’s principal service area, investments were considerable in Q1 and amounted to ISK 3.7 billion. Besides extensions and maintenance of the traditional utilities – water, heating, electricity and sewers – new steam-holes were drilled in the Hengill geothermal area and the fibre network is being extended to homes in the municipalities of Arborg and Reykjanesbær.

Compared to Q1 2018, when investments were ISK 2.8 billion, the increase amounts to ISK 900 million or nearly one-third.

Bjarni Bjarnason, CEO:

Our operations are solid. We have a good grip on expenses that has allowed us to decrease some of our tariffs while delivering a fair return on investment to the municipalities that own Reykjavík Energy.

The operations of Reykjavík Energy are, by nature, environmentally benign; responsibly harnessing the gifts of nature to deliver fresh water, green energy, operate sewerages for hygiene, and a data utility that passes the test of time. While the carbon footprint of our operations is among the smallest we see in comparable operations, we seek constant improvement in that respect.

In Q1 2019, we, for the first time, entered the green-bond market to finance in part our various green projects. They had received a dark-green evaluation by a third party and demand was considerable. We maintain we got favorable bids and foresee continuing such issuance.

Managers’ Overview

ISK million  Q1 2015Q1 2016Q1 2017Q1 2018Q1 2019
Revenues11,110  11,336  11,822  12,263  12,643 
EBITDA7,230  7,257  7,685  7,752  7,926 
EBIT4,831  4,850  5,301  5,464  5,097 
Income tax(746)(432)(2,258)1,028 (808)
Results for the period3,276  2,535  6,039  390  3,869 

Key financial figures

More key financial figures for the Reykjavík Energy group can be found on our website along with financial targets.

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Mr. Bjarni Bjarnason
+354 516 6100