Reykjavík, 2017-11-20 15:31 CET (GLOBE NEWSWIRE) -- Orkuveita Reykjavíkur‘s (OR; Reykjavík Energy) operating expenses through Q3 2017 were less than during same period in 2016. External operating factors have also been favorable and bottom-line profits amounted to ISK 10.5 billion in the first nine months of year 2017. OR consolidated interim financial statements were approved by the Board of Directors today.
Lowering operating expenses
The operating expenses of OR in the first nine months of year 2017 were, in real terms, lower that in the same period in year 2016. Furthermore, according to OR’s financial forecast for year 2018, published October 20th, it is forecast to decrease further in year 2018. This prudence is returned to customers through regulated tariffs, as tariffs for potable water has already been decreased in year 2017 and tariffs for electricity distribution been lowered twice.
Increased price of aluminum
A sizeable portion of power sales by ON Power, one of OR´s subsidiaries, is connected to the price of aluminum. Increased price of the metal has thus returned increased revenues. Furthermore, the increased price is calculated for the duration of long-term contracts, so possible future benefits are also presented in the interim financial statements.
Key financial figures on OR’s 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#page-8068. The web also comprises interim and annual financial statements for recent years.
Managers’ Overview
| All amounts are in ISK million | Q3 2013 | Q3 2014 | Q3 2015 | Q3 2016 | Q3 2017 |
| Revenues | 28,806 | 26,960 | 28,768 | 29,921 | 31,310 |
| Operating expenses | (9,794) | (9,195) | (10,535) | (11,785) | (11,744) |
| thereof energy purchases and transmission | (3,902) | (3,644) | (4,645) | (4,555) | (4,238) |
| EBITDA | 19,012 | 17,766 | 18,234 | 18,136 | 19,566 |
| Depreciation | (6,251) | (6,510) | (7,172) | (7,584) | (7,051) |
| EBIT | 12,762 | 11,256 | 11,061 | 10,551 | 12,515 |
| Income tax | (620) | (2,257) | 0 | (3,421) | (3,593) |
| Results of the period | 5,972 | 7,879 | 3,093 | 9,368 | 10,512 |
| Cash flow statement | |||||
| Received interest income | 176 | 442 | 377 | 146 | 278 |
| Paid interest expense | (3,448) | (3,420) | (3,181) | (2,600) | (2,990) |
| Net cash from operating activities | 16,934 | 17,885 | 18,126 | 17,305 | 18,625 |
| Working capital from operation | 14,973 | 12,677 | 14,734 | 14,853 | 15,080 |
| Investment in property, plant, equipment and intangible assets | (2,196) | (3,565) | (7,323) | (8,422) | (9,567) |
| Repayments of interest bearing debt | (20,561) | (13,913) | (11,977) | (12,681) | (13,835) |
Contact:
Bjarni Bjarnason
CEO
+354 516 6100
