“The operations of Landsvirkjun performed well during the year 2015, in a demanding business environment. EBITDA ratio increased between years, despite decreasing aluminum prices and market uncertainty. Profit before unrealized financial items amounted to USD 130.6 million, and sold volume of electricity was 13.9 TWh, a record in the history of the Company.
Strong cash flow enabled us to work further towards lowering debt, and net debt has not been lower since 2005 and decreased by USD 205 million during the year. Since 2009 the debt has decreased by USD 838 million. The debt ratio of the Group, compared to operating profit before depreciations, significantly decreased and the equity ratio is now higher than it has been since the first years of the Company.
As a result of positive operating results in the previous years, the pleasant news arrived at the beginning of the year 2016 that Landsvirkjun’s credit rating had been transferred to investment grade. Despite a challenging environment in most commodity and energy markets, demand for energy from Landsvirkjun is high from various industries. The Company is now working, within its scope, to meet the demand and is currently in the process of building a geothermal power plant at Theistareykir and will commence construction of an expansion of Burfell hydro power plant in the spring of 2016.“