Orkuveita Reykjavíkur
The Plan returns ISK 6.9 bn above target

Orkuveita Reykjavíkur 

16.05.2014 16:01

Dissemination of a Adhoc News, transmitted by DGAP - a company of EQS Group
AG.
The issuer is solely responsible for the content of this announcement.

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Reykjavik, 2014-05-16 16:01 CEST (GLOBE NEWSWIRE) -- Accumulated returns of
Reykjavik Energy's Plan - series of actions initiated in 2011 - now amount to
ISK 45.2 bn and surpass targets by ISK 6.9 bn. All parts of the Plan have
surpassed targets. The Plan is intended to return a total of ISK 51.3 bn. by
year-end 2016. By these results, 88% of that amount has been realized. The
attached Progress Report on the Plan was introduced to the Company's Board of
Directors today. Note that this time the report is based un unaudited operation
result. 

The Plan - ISK bn.                                The Plan                Result
--------------------------------------------------------------------------------
                                           2011-2016  2011-2014 F1  2011-2014 F1
--------------------------------------------------------------------------------
Reductions of investments in utility            15,0           7,8          10,4
 systems                                                                        
--------------------------------------------------------------------------------
Sale of assets                                  10,0           8,4           8,9
--------------------------------------------------------------------------------
Reductions in operating cost                     5,0           2,3           3,3
--------------------------------------------------------------------------------
Reduction in other investments                   1,3           0,7           1,2
--------------------------------------------------------------------------------
Postponement of investments in sewerage          0,0           2,9           3,3
--------------------------------------------------------------------------------
Total                                           31,3          22,2          27,1
--------------------------------------------------------------------------------
Subordinated loan from owners                   12,0          12,0          12,0
--------------------------------------------------------------------------------
Increased revenues by higher tariffs             8,0           4,2           6,0
--------------------------------------------------------------------------------
Total                                           20,0          15,9          18,0
--------------------------------------------------------------------------------
The Plan - Total                                51,3          38,3          45,2
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At the Board's meeting, founding balance sheets were approved for the Reykjavik
Energy's subsidiaries that commenced operations January 1st 2014, when law
demanding unbundling of energy companies came into effect. These do not affect
the economy of Reykjavik Energy as all the subsidiaries are entirely owned by
RE. In accordance with Reykjavik Energy's Owners' Policy, the BoD's resolution
regarding the balance sheets was passed pending the owners' ratifications. 

Balanc  Consolidate   Orkuveita    OR-Assets   ON pltd.        OR       OR
Water 
e            d       Reykjavíkur     pltd.                  Utilities   works
and 
 sheet               - municipal                              pltd.    
sewerage, 
 Janua               partnership                                      
partnershi 
ry 1st                                                                      p 
 2014 
 in 
 ISK 
 ,000 
--------------------------------------------------------------------------------
- 
Assets  283,107,398  280,667,943  65,623,816  107,969,091  74,241,578 
59,540,156 
--------------------------------------------------------------------------------
- 
Liabil  202,138,301  199,698,848       8,000   69,195,714  47,395,140 
33,795,245 
ities 
--------------------------------------------------------------------------------
- 
Equity          29%          29%        100%          36%         36%        
43% 
 ratio 
--------------------------------------------------------------------------------
- 



Because of these changes in the operations, Reykjavik Energy will not issue
audited financial statements for Q1 2014. These operation results for the
quarter were presented to the Company's Board of Directors today. 

All amounts are in ISK ,000      Result      Budget  Difference  Difference %
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Revenues                     10,206,952  10,069,461     136,991          1.4%
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Expenses                      4,226,098   4,601,950    -375,852          8.2%
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EBITDA                        5,979,853   5,467,511     512,342          9.4%
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         Contact:
         Bjarni Bjarnason
         CEO
         +354 5166000
News Source: NASDAQ OMX



16.05.2014 DGAP's Distribution Services include Regulatory Announcements,
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Language:     English
Company:      Orkuveita Reykjavíkur
              
               
              Iceland
Phone:        
Fax:          
E-mail:       
Internet:     
ISIN:         IS0000010775
WKN:          
 
End of Announcement                             DGAP News-Service
 
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