Chairman’s statement

The Fruits of Labours Past

Jónas Þór Guðmundsson, stjórnarformaður Landsvirkjunar
Read the Annual Report

The energy of today must evolve to become the energy of the future. Long-term planning and taking appropriate measures are essential to shaping a green energy future. Energy foresight has become fundamental to the future interests of any nation. Landsvirkjun has always endeavoured to demonstrate forethought whilst maximising the value of renewable energy sources. The Landsvirkjun team has consistently shown foresight throughout the Company’s history, and we owe them a debt of gratitude.

We are now reaping the rewards. Landsvirkjun’s performance has never been better, benefitting its owner, the Icelandic people. The financial position of the Company is stronger than ever. This can be attributed to power project investments of the past – when our present was their future - and responsible financial management, which has, among other things, resulted in unprecedented debt reduction in the last decade or so. The Company has renegotiated contracts with many of its largest customers as the contractual situation has strengthened, ensuring that the prices they pay are comparable to those in countries with which we typically compare ourselves.

A turning point occurred in 2022 when Landsvirkjun sold its 64.73% holding in its subsidiary Landsnet, which handles electricity transmission according to Icelandic law. The Icelandic government purchased the shares for USD 305 million under the purchase agreement. The Parliament had previously proposed that the transmission company be owned by the Icelandic state and/or municipalities. As of the 30th of December 2022, Landsnet is no longer part of the Landsvirkjun group.

While Landsvirkjun’s success should be celebrated, we must remember that the project is not over - and may never be!