Landsvirkjun

Managements's presentation of the operation of Landsvirkjun

Amounts are in USD thousand

  2016 2015 2014 2013 2012
Operation    
Operating revenues 420.370 410.496 428.655 407.676 389.499
Realised aluminium hedges, income (expenses) 4.890 10.956 9.629 15.228 18.325
Total operating revenues 420.370 421.452 438.284 422.904 407.824
Operating expenses (118.630) (99.932) (106.126) (93.768) (88.225)
EBITDA 301.740 321.520 332.158 329.136 319.599
Depreciation and impairment loss (118.571) (115.554) (114.045) (117.670) (112.288)
EBIT 183.169 205.966 218.113 211.466 207.311
Fincancial items (60.045) (73.418) (69.838) (86.988) (103.093)
Associated companies (5.448) (1.921) (1.419) (2.647) (2.229)
Profit before unrealised financial items 117.676 130.627 146.856 121.831 101.989
Balance sheet    
Total assets 4.332.864 4.284.703 4.270.098 4.568.965 4.518.534
Equity 1.969.088 1.916.634 1.704.724 1.658.134 1.697.152
Liabilities 2.363.776 2.368.069 2.565.374 2.910.831 2.821.382
Net liabilities * 1.960.497 1.985.411 2.190.459 2.429.176 2.435.571
Cash Flow    
Funds from operations (FFO) 235.602 240.354 258.226 257.704 241.584
Cash flow from operating activities 229.827 248.955 233.816 258.485 236.178
Investing activities (172.277) (77.486) (88.271) (149.455) (122.979)
Financing activities (59.305) (234.465) (220.687) (12.893) (151.670)
Liquidity    
Cash and cash equivalents at year end 144.534 142.127 207.070 287.987 187.916
Undrawn loans 472.448 360.824 200.000 301.947 409.979
Total liquidity 616.982 502.951 407.070 589.934 597.895
Key ratios    
Return on equity 3.5% 4,9% 4,7% (2,3%) 3,3%
Equity ratio 45.4% 44,7% 39,9% 36,3% 37.60%
Interest cover (EBITDA / net interest expenses) 5.15x 4,60x 3,76x 3,51x 3,25x
FFO / net liabilities 12.0% 12,1% 11,8% 10,6% 9,9%
FFO / interest expenses 3.80x 3,27x 2,82x 2,66x 2,36x
Net liabilities / EBITDA 6.50x 6,18x 6,59x 7,38x 7,62x
Credit rating at year end    
Standard & Poor's BBB- BBB- BB BB BB
Moody's Baa3 Baa2 Baa3 Baa3  Baa3
Other key metrics for Landsvirkjun (parent company)    
Installed power at year end (MW) 1.957 1.957 1.957 1.862 1.860
Average price for industrial users (incl. transm.) USD / MWh 23,9 24,5 25,9 25,8 26,2
Average price for retail sales comp. (excl. transm.) ISK / kWst 4,6 4,4 4,3 4,0 3.9
Sales in Gwh 13.625 13.900 13.082 13.186 12.770
Research and developement 16.829 19.529 30.606 26.799 32.514
Accident frequency: H200 ** 0.3 0,4 0,4 0,7 0,0

* Net liabilities are interest bearing long-term liabilities less cash.
** H200 is the number of absence accidents per each 200,000 working hours.