Landsvirkjun Group interim report, first nine months of 2016
November 23, 2016
Key figures from the interim financial statements
- Operating revenues amounted to USD 307.1 million which is a decrease of USD 6.9 million (2.2%) compared to the same period in 2015.
- EBITDA amounted to USD 225.6 million. EBITDA ratio is 73.5% of revenues compared to 78.0% in the same period in 2015.
- Profit before unrealised financial items amounted to USD 88.8 million compared to USD 95.1 million in the same period in 2015, a decrease of 6.7% between periods.
- The profit for the period was USD 47.5 million compared to USD 76.3 million in the same period in 2015. The decrease between periods is in part due to lower revenues, but a large part of it is traced to unrealised financial items.
- Net debt decreased by USD 11.7 million from the beginning of the year and amounted to USD 1,973.8 million at the end of September.
- Cash flow from operations amounted to USD 172.5 million which is a decrease of 11.2% compared to the same period in 2015.
Hörður Arnarson, CEO:
“We can be quite content with the Company’s performance in the first nine months of the year. Aluminium prices continued to decrease and are now 9% lower than in the same period last year and historically very low, which had a negative effect on revenues as a part of our electricity sales contracts are connected to the development of aluminium prices.
The Company is currently working on construction of two power plants, at Theistareykir and Burfell, while at the same time net debt continues to decrease which reflects powerful cash generation. It is pleasant to see that the decrease of net debt and better credit terms are leading to a considerable decrease in financial expenses.
The company is currently re-negotiating power purchase agreements with sales companies in the wholesale market. The average price to the wholesale market has been almost unchanged for the last years and that trend is not likely to change next year.”
Interim financial statements Jan-September 2016