Landsvirkjun's results in 2008

 

The financial statements of Landsvirkjun are prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU and they are presented in USD, which is the functional currency of Landsvirkjun as of the beginning of 2008. Comparative figures for the year 2007 have been translated at the end exchange rate of the USD against the ISK at year end 2007.

 

Loss on the operation of the Landsvirkjun group for the year 2008 amounted to USD 344.5 million but EBIT amounted to USD 246 million. Cash from operation amounted to USD 184.4 million. At year end, the group's total assets amounted to USD 4,619.2 million and equity amounted to USD 1,376.8 million. Equity ratio was 29.8% at year end 2008.

 

	CONSOLIDATED
	IFRS			IS-GAAP
	2008	2007	2006	2005	2004
Operating revenue	452,027	368,824	343,511	250,836	220,984
Operating expenses:
Operating and maintenance cost	100,512	105,800	102,805	95,366	75,666
Depreciation and amortization	105,532	81,960	76,932	79,104	86,240
Total operating expenses	206,044	187,760	179,737	174,470	161,907
Operating profit	245,983	181,064	163,774	76,366	59,078
Financial income and (expenses)	(660,563)	445,638	(263,433)	25,741	56,975
Profit (loss) before taxes	(414,580)	626,702	(99,659)	102,107	116,052
Income tax	70,048	(167,444)	277,230
Profit (loss)	(344,532)	459,258	177,571	102,107	116,052
Total assets	4,619,220	5,142,303	4,279,794	2,935,247	2,494,915
Equity	1,376,792	1,600,145	1,143,272	963,269	828,660
Liabilities	3,242,428	3,542,158	3,136,522	1,971,978	1,666,255
Cash flow from operating activities	184,350	138,522	146,789	95,602	74,545
Investments	374,797	532,526	731,967	461,008	337,044
EBITDA	351,515	263,024	240,706	155,470	145,318
Equity ratio	29.8%	31.1%	26.7%	32.8%	33.2%

 

Operating revenue increased by USD 83 million, which is mainly explained by the increase in sale of electricity following the commissioning of the Kárahnjúkar power plant. Operating expenses before depreciation amounted to USD 100.5 million during the year compared to USD 105.8 the previous year. Financial expenses in excess of financial income amounted to USD 660.6 million, which is mainly explained by a decrease in the fair value of embedded derivatives in energy sales agreements which are linked to the price of aluminium as well as currency exchange loss. The currency exchange loss and fair value changes are for the most part unrealised and must be taken into account in the evaluation of the Company's results. Average nominal interest on long-term loans were 4.51% during the year 2008 compared to 4.69% the previous year.

 

Foreign exchange development and fair value changes in embedded derivatives will continue to be a predominant factor in the results for this year. The Company has access to liquidity, which in addition to cash from operation will ensure that the Company will be able to meet its liabilities until the end of 2010. Landsvirkjun will not undertake new power projects unless the Company will be able to provide new long-term funding.

 

Further information is provided by Landsvirkjun's CFO, Stefán Pétursson, via telephone number (+354) 515 9000.

 

The financial statements of Landsvirkjun will be submitted to the Company's Annual General Meeting on 3 April 2009.