Solid operations and strong position in the first quarter
- Landsvirkjun's profit from core operations in the first quarter amounted to USD 88 million and cash flow from operations to USD 86 million.
- The Company's financial position remains strong, with an equity ratio of 65% and a net debt to EBITDA ratio of 1.7×.
- Revenue from electricity sales increased by 10% year-on-year, driven by higher electricity prices to large industrial customers as a result of rising aluminium prices.
Hörður Arnarson, CEO:
“Landsvirkjun's operations performed well in the first quarter of the year. Revenue from electricity sales rose 10% year-on-year, and operating revenue amounted to USD 165 million. Profit from core operations amounted to USD 88 million, or around ISK 11 billion. Electricity prices for industrial customers increased somewhat compared with the previous year, primarily owing to higher aluminium prices, supporting revenue growth.
Construction of the Vaðölduver wind farm is progressing well, and half of the wind turbines will be commissioned later this year. Work on Hvammur Power Station is also going well, and it is expected to be in full swing by the end of the year.
Landsvirkjun's financial position remains strong. Net debt decreased from USD 677 million at year-end to USD 659 million at the end of the first quarter. The equity ratio remains historically high at 65%, and the leverage ratio is 1.7 times EBITDA.
Furthermore, we received the positive news that the Norðurál aluminium smelter at Grundartangi will return to full operation much earlier than anticipated, and that Landsvirkjun is insured against the loss of revenue the company incurred due to the equipment failure last October.
Power station operations were sound throughout the period, and reservoir conditions are favourable.”
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