Orkuveita Reykjavíkur
Good and Stable Results in 2014

DGAP-News: Orkuveita Reykjavíkur

2015-03-23 / 16:33

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Ongoing repayment of debt | Reykjavík Energy equity reached approximately ISK
100 billion | Equity Ratio of 33% 

Reykjavik, 2015-03-23 16:33 CET (GLOBE NEWSWIRE) -- Stable income and sustained rationalization in
operations have returned Reykjavik Energy (RE-Orkuveita Reykjavikur) similar
results for year 2014 as in the two previous years. RE has paid down its debt
by approximately ISK 20 billion in year 2014. At year's end, RE's equity was
99.4 billion ISK and equity ratio reached 33.2%.  

RE's operating expenses were ISK 13.7 billion in 2014.
In year 2010 that amount was ISK 14 billion or ISK 300 million less. If these
amounts are CPI-adjusted, the decrease in operating expenses is ISK 2.3
billion.  

At
 year-end 2014, Reykjavik Energy's Plan had returned ISK 49.6 billion. That is  
 97% of the total amount scheduled from its initiation in Q2 2011 until year-end
                               2016.                              

2014 was
the first year of operations since the mandatory unbundling of Reykjavík
Energy. The consolidated financial statements, which were approved today by
Reykjavík Energy's Board of Directors, is presented in the same manner as
before unbundling. Thus, continuity in figures is preserved. 

As assumed in The Plan, considerable investments are
planned for year 2015, both in the utilities and power plants. Renewal of
sewerage in West Iceland will resume as well as maintenance of hot water mains.
The single largest project of the year is connecting the Hellisheidi Power
Plant to the Hverahlid steam-fields, thus improving the environmental and
financial sustainability of the plant.   

Significant increase in equity 

RE's operating expenses in 2014 were lower than in
2010. Real terms decrease is approximately ISK 2.3 billion.
EBIT was ISK 15.7 billion for 2014.
Bottom-line results were a profit of
ISK 8.9 billion for 2014. 
EBITDA amounted to ISK 24.8 billion in 2014.
Net interest-bearing debt decreased
by ISK 14.2 billion. Net interest-bearing
debt at year-end 2014 was approximately ISK 172 billion, down
from ISK 231 billion five years ago. 
Equity ratio increased from 28.6% in 2013 to 33.2% in
2014. 
RE's equity has increased by 23%
from 2013 and by 64% since two years ago. 
Reykjavik Energy will not pay dividends for the year as
dividends were suspended for the duration of The Plan.
Bjarni Bjarnason, CEO of Reykjavík
Energy: 

The Plan and our strong commitment in pursuing its
goals have returned Reykjavik Energy stable and good financial results in
recent years. Effective risk management and resolve in operations have further
increased the predictability of operational performance. Total debt is rapidly
decreasing and equity is becoming acceptable. This has been noted in improved
independent credit ratings of Reykjavík Energy. Now, it's pivotal to remain
alert and keep ourselves to the standards we have set in prudency. RE's Owners'
Policy, revised in 2014, is a good compass to follow in that
respect. 

2014 was the first year after Reykjavik Energy's
mandatory unbundling. The financial statements show that the Company's
employees and management have not been flustered in any way by the changes. Our
business has been stably conducted, services reliable, and results according to
budget.  

Managers' overview 

2010     2011     2012     2013     2014 
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27,916   33,626   37,905   39,209   38,679 
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-13,964  -12,391  -12,861  -13,126  -13,681 
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13,951   21,235   25,044   26,084   24,845 
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-7,962   -8,881  -10,371   -8,927   -9,152 
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5,989   12,354   14,673   17,156   15,693 
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13,729     -556   -2,295   
3,350    8,871 
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Cash 
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150      127      147      209      709 
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-4,030   -5,690   -7,093   -6,308   -4,574 
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11,588   16,930   18,935   20,033   22,084 
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10,595   17,231   19,880   19,675   18,881 
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         Contact:
         Mr. Bjarni Bjarnason
         CEO
         Tel: +354 516 7707
News Source: NASDAQ OMX



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2015-03-23 Dissemination of a Corporate News, transmitted by DGAP - a
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Language:    English                
Company:     Orkuveita Reykjavíkur  
 
 
             Iceland                
ISIN:        IS0000010775           
 
 
End of News    DGAP News-Service  
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336275 2015-03-23