Landsvirkjun‘s Financial Statements 2016
Acceptable earnings in a demanding business environment
- Two power plants under construction in order to meet increased demand for electricity
Key figures from the consolidated financial statements
- Operating revenues amounted to USD 420.4 million which is a decrease of USD 1.1 million compared to 2015.
- EBITDA amounted to USD 301.7 million, a decrease of 20 million USD from the previous year. EBITDA ratio is 71.8% of revenues, compared to 76.3% in the previous year.
- Profit before unrealised financial items amounted to USD 117.7 million compared to USD 130.6 million in the previous year, which is a decrease of 9.9% between periods.
- Profit for the year amounted to USD 66.8 million compared to USD 84.2 million in the previous year.
- Net debt decreased by USD 24.9 million in the year 2016 and amounted to USD 1,960.5 million at year end.
- Cash flow from operating activities amounted to USD 229.8 million which is a decrease of 7.7% compared to 2015.
Hörður Arnarson, CEO:
“Landsvirkjun’s earnings in the year 2016 are acceptable despite a decrease year over year.
External conditions were not favourable in the year 2016. Aluminium prices continued to be low despite moving higher in the second half of the year. Our revenues are still in some part connected to aluminium prices. Sold volume also decreased between years, contrary to plans, due to customer operational difficulties. In spite of this, revenues were nearly the same between years.
Strong cash flow enabled the Company to do more than meet its investments in the new hydro-electric power station at Burfell II and the geothermal power plant at Theistareykir. It is satisfactory to be able to continue this development without increasing debt, but on the contrary, decrease debt.
The decrease in debt during the last few years has had a good effect on the Company’s operations, which can be seen by the substantially lower interest expense between years.
Landsvirkjun’s credit rating was raised by one grade in January 2017 which adds up to an advancement of three grades in the last years. The Company´s current credit rating, without a state guarantee, is investment grade and in this respect the company is drawing closer to comparable companies in the neighbouring countries.”