In his speech Landsvirkjun CEO, Hörður Arnarson, stated that Iceland currently holds a highly unique position among European nations in its potential to increase electric power production through renewable energy resources. Increased power production could be used for continuing to develop varied industries, and at the same time do business with electric power through a submarine cable to Europe.
CEO Arnarson emphasised that the laying of a submarine cable should not prevent further industrial development in Iceland, but could instead be an addition that fit well within the continued industrial development of the country.
“The laying of a submarine cable to Europe, together with vigorous industrial development in Iceland, is probably one of the biggest business opportunities Iceland has faced“, CEO Arnarson said.
Landsvirkjun proposes that over the next couple of years further analyses and research of the social, legal and technical issues in connection with the project be undertaken in cooperation with the authorities, universities, interest groups, energy companies and other interested parties.
In his speech CEO Arnarson also mentioned that the changed circumstances in financial markets call for a new approach in financing Landsvirkjun. By focusing on its owner for increased equity injection instead of a development solely driven by increased borrowing, operating risks could be reduced and dividends be paid sooner to the owner.
CFO Hörður Arnarson Minister Oddný Harðardóttir
Minister of Finance Oddný Harðardóttir addressed the meeting and announced that she had decided to appoint a work group to start work on the feasibility of laying a submarine cable between Iceland and the British Isles or mainland Europe, for which she will call for nominations from all party groups.
Landsvirkjun chairwoman Bryndís Hlöðversdóttir emphasized in her address, the importance of the authorities setting an owner‘s strategy for state-owned companies such as Landsvirkjun. Chariwoman Hlöðversdóttir stated key emphasis of operation, defining the main expectations to the companies and explaining the State‘s objectives with its ownership.
Landsvirkjun CFO Rafnar Lárusson presented the 2011 financial statement, according to which Landsvirkjun‘s cash flow continues to improve. Indebtedness is still excessive and over the coming years emphasis will continue to be on repaying debt and reduce operational risks.
Chairwoman Bryndís Hlöðversdóttir CFO Rafnar Lárusson
The company's Annual Report for 2011 was released at the meeting and is currently in Icelandic . The report will be published in English in May 2012.
Landsvirkjun´s Annual Report 2011 (Icelandic)
The Financial Statements of 2011 were introduced at the meeting and is available both in Icelandic and English.
Landsvirkjun´s Financial Statements 2011 (English)