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Challenging economic conditions put pressure on demand

August 21, 2020

Landsvirkjun’s results for the first half of the year reflect the difficult economic conditions throughout the world

Key figures from the interim financial statements

  • Profit before unrealized financial items amounted to USD 69.4 million compared to USD 96.4 million in the same period of the prior year which is a decrease of 28.0%.
  • The profit for the period was USD 40.6 million compared to USD 68.6 million in the same period of the prior year.
  • Operating revenues amounted to USD 227.1 million and decrease by USD 32.6 million (12.6%) from the same period of the prior
  • Net debt decreased by USD 60.2 million from the beginning of the year and amounted to USD 1,631.3 million at the end of June.
  • Cash flow from operations amounted to USD 129.7 million which is a decrease of 18.9% compared to the same period of the prior year. 

Hörður Arnarson, CEO:

“Landsvirkjun’s results for the first half of the year reflect the difficult economic conditions throughout the world. The COVID-19 pandemic has adversely affected demand of our largest customers, which is reflected in the revenues for the period, in particular for the second quarter. Landsvirkjun has supported its industrial customers during these difficult times by offering them discounted prices until the 31 October, 2020.

Total volume of electricity sold was down by 6% between years and profit before unrealised financial items decreased by 28% and amounted to USD 69.4 million. The average price of aluminium for the period decreased by 13% between years and prices on the Nord Pool market decreased by 75%, some of the contracts with industrial customers are linked to these variables. Net debt decreased by USD 60.2 million from the beginning of the year despite these difficult external conditions. The operating outlook is uncertain and is very dependent on the containment of the pandemic and the subsequent economic recovery. 

The operation of Landsvirkjun’s power stations went well during the period and I would like to thank the company’s employees for their dedication in ensuring that there have been no operational disruptions during this difficult pandemic. “

Attachment: Press release

Attachment: Interim Financial Statement

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