Landsvirkjun

Landsvirkjun's performance in the first six months of 2006

29. August 2006

Earnings before interest and taxes (EBIT) were ISK 4.654 billion, and cash from operations amounted to ISK 5.588 billion.

Landsvirkjun's semiannual financial statement is based on historical cost accounting, prepared using the same accounting methodology as that employed for the previous year.

The key figures from the half-year financial statement are (in millions ISK):

 

     

Jan.-June

Jan.-June

     

2006

2005

Operating income  

10,013

8,123

Operating expenses  

( 2,970)

(2,717)

Earnings before interest, taxes, depreciation,and amortisation (EBIDTA)

7,043

5,406

Depreciation    

(2,389)

( 2,551)

Operating profit  

4,654

2,855

Net financing cost

(27,613)

(789)

(Loss) profit before taxes

(22,959)

2,066

Income tax  

16,108

0

(Loss) profit before minority interest

(6,851)

2,066

Minority interest  

361

( 58)

(Loss) profit  

(6,490)

2,008

     

 

 

     

30 June 2006

31 Dec. 2005

Total assets  

219,378

181,985

Equity capital    

51,121

58,003

Minority interest  

1,359

1,720

Liabilities    

166,898

122,262

     

 

 

     

Jan.-júní

Jan.-júní

     

2006

2005

Handbært fé frá rekstri  

5.588

3.447

Eiginfjárhlutfall  

23,30%

31,47%

The main new construction in the first half of 2006 was related to Kárahnjúkar Power Project. At the end of June, total company assets amounted to ISK 219.4 billion, and the equity ratio was 23.3%. Landsvirkjun had been exempt from income taxes, but in accordance with Act No. 50 of 2005, the company became liable for income tax as of 1 January 2006. The impact of this change in the company's tax burden appears in the operating account. The mid-year financial report estimates tax assets at ISK 16.1 billion. A large portion of the company's long-term debts is in foreign currency, so that exchange losses over the period due to long-term loans in foreign currency amounted to ISK 24.9 billion. The exchange index was 104.9 at the end of 2005, but had reached 134.2 by the end of June, 2006.

The half-year financial statement was presented at the meeting of Landsvirkjun's Board of Directors on 28 August 2006.

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