Reykjavík, 2017-05-15 17:17 CEST (GLOBE NEWSWIRE) -- Operation results for Orkuveita Reykjavíkur (OR; Reykjavík Energy) were similar in Q1 2017 as in recent years. Increased value of derivatives in long-term energy contracts with price linked to aluminum prices resulted in considerable profits, the increase amounting to ISK 5.3 billion. “A bird in hand is worth two in the bush,” says CEO Bjarni Bjarnason referring to the recorded profits. OR’s income tax increases significantly from previous year, forecast at ISK 2.3 billion in the company’s interim financial statements for Q1 2017, approved by the Board of Directors today.
Stable operational results
At the beginning of year 2017, OR lowered the tariffs for parts of the group’s services; the group consisting of Veitur Utilities, ON Power, and Reykjavík Fibre Network, in addition to the parent company. The group’s revenues for Q1 2017 increased by ISK 487 million, compared to Q1 2016, despite decreased tariffs for electricity distribution and potable water. ON Power was the largest contributor to the increase. At the same time expenses increased by ISK 59 million.
Key Financial Figures on the Web
OR has in recent years published Key Financial Figures along with the company’s financial statements. They can now be found on the company’s website at https://www.or.is/english/finance/key-financial-figures. The web also comprises interim and annual financial statements for recent years.
Bjarni Bjarnason, CEO
A key point in these statements is the minor increase in operational cost. That enables us to keep the tariffs for our services low and pay our owners a fair dividend. The large income increase related to higher aluminum price is far from being in the bag. Naturally, we hope these increases endure but those developments are not under our influence; a bird in hand is worth two in the bush. We at Reykjavík Energy and the subsidiaries focus on faithfully and economically executing the important functions we have been entrusted with.
Managers’ Overview
| All amounts are in ISK million | Q1 2013 | Q1 2014* | Q1 2015 | Q1 2016 | Q1 2017 |
| Revenues | 10,650 | 11,110 | 11,336 | 11,822 | |
| Expenses | (3,361) | (3,880) | (4,079) | (4,138) | |
| thereof energy purchase and transmission | (1,441) | (1,868) | (1,635) | (1,701) | |
| EBITDA | 7,288 | 7,230 | 7,257 | 7,685 | |
| Depreciation | (2,234) | (2,399) | (2,406) | (2,384) | |
| EBIT | 5,054 | 4,831 | 4,850 | 5,301 | |
| Results of the period | 4,166 | 3,276 | 2,535 | 6,039 | |
| Cash flow statement: | |||||
| Received interest income | 88 | 172 | 2 | 59 | |
| Paid interest expense | (1,113) | (989) | (679) | (764) | |
| Net cash from operating activities | 5,169 | 5,246 | 4,998 | 6,454 | |
| Working capital from operation | 5,289 | 6,145 | 6,129 | 5,594 | |
| *No financial statements were published for Q1 2014 because of OR’s unbundling | |||||
Contact:
Bjarni Bjarnason
CEO
tel. +354 516 6100
