Orkuveita Reykjavíkur
Good operational results at Reykjavik Energy

Orkuveita Reykjavíkur 

15.11.2013 11:50
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Operational cost is stable and similar to nominal ISK cost in 2009 | ISK 12.8
billion EBIT through Q3 2013 | Interest bearing debt has decreased by ISK 24.1
billion through Q3 2013 but still heavy 

Reykjavik, 2013-11-15 11:50 CET (GLOBE NEWSWIRE) -- The curtailing in Reykjavik
Energy's operations continues to yield improved operational results. Real cost
of operations adjusted for inflation has decreased by ISK 1.6 billion since
year 2009 and in nominal ISK the cost is practically the same.  EBIT for the
first nine months of 2013 amounted to ISK 12.8 billion but was ISK 11.0 billion
in the same period 2012. The Company has repaid interest bearing debt by ISK
24.1 billion this year and the Plan, originated in 2011, is returning
considerably better liquidity position than expected. 

Reykjavik Energy's Board of Directors today confirmed the Company's interim
financial statements which is prepared in accordance with International
Financial Reporting Standards (IFRS). 

Increasing EBITDA

EBITDA through the first nine months of 2013 amounted to ISK 19.0 million
compared to ISK 17.8 billion in the same period of 2012. External factors,
exchange rates against the ISK, price of aluminium and interest rates, have
developed each in its own way. The developments of exchange rates against the
ISK have been favourable for the Company but the price of aluminium is low,
having a negative effect on financial items in the financial statements. Profit
through Q3 2013 after taxes amounted to ISK 6.0 billion. 

The Plan has now delivered ISK 40 bn. of the proposed ISK 51 bn.

The total return of the Plan, since it was initiated in March 2011, amounted to
ISK 35.3 billion through Q3 2013.  All parts of the Plan were on schedule
except for sale of assets. Since end of Q3 2103, the sale of Reykjavik Energy's
headquarters, amounting to ISK 5.1 billion, has been completed. Taking that
transaction into account, the Plan has returned ISK 40.4 billion of the ISK
51.3 it is intended to return in improved cash flow until the year end 2016. 

Bjarni Bjarnason, CEO of Reykjavik Energy:

Reykjavik Energy's operations are on track and finances improving. Our
customers' access to electricity, hot and cold water and sewerage for a
reasonable price is always the main priority. In the Plan, which we have been
executing since 2011, ambitious goals were set; goals that were considered hard
to achieve. The employees of the Company, its Board, owners, and customers have
jointly met this challenge. 

When conducting the statutory unbundling of Reykjavik Energy by year-end, it is
essential to maintain sharp focus on the Plan and its targets. Ahead are
exciting times, in which Reykjavik Energy will present itself differently to
its customers. It will make its mark in an increasingly competitive electricity
market while insuring not losing sight of the public service it is trusted for. 

Managers' overview

All amounts are in ISK millions at each period's price level.

Operations through Q3 2013             2009     2010      2011     2012     2013
--------------------------------------------------------------------------------
Revenues                             17.960   19.444    24.388   27.286   28.806
--------------------------------------------------------------------------------
Expenses                            (9.434)  (9.557)   (8.910)  (9.449)  (9.794)
--------------------------------------------------------------------------------
EBITDA                                8.526    9.886    15.478   17.838   19.012
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Depreciation                        (6.979)  (5.936)   (6.178)  (6.862)  (6.251)
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EBIT                                  1.546    3.950     9.300   10.976   12.762
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Realised financial income and       (3.594)  (1.020)     (917)  (2.781)  (3.361)
 (expenses)                                                                     
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Result before unrealised            (2.047)    2.930     8.383    8.195    9.401
 financial income and (expenses)                                                
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Unrealised financial income and    (11.546)   19.439  (16.246)  (4.800)  (2.809)
 (expenses)                                                                     
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Result before income tax           (13.593)   22.369   (7.863)    3.394    6.592
 according to the interim                                                       
 statements                                                                     
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Income tax                            2.305  (5.575)     2.519    (814)    (620)
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Result of the period               (11.288)   16.794   (5.344)    2.580    5.972
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         Contact:
         Bjarni Bjarnason
         CEO
         +354 516 7707
News Source: NASDAQ OMX



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Language:     English
Company:      Orkuveita Reykjavíkur
              
               
              Iceland
Phone:        
Fax:          
E-mail:       
Internet:     
ISIN:         IS0000010775
WKN:          
 
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