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Landsvirkjun‘s Financial Statements 2017

February 15, 2018

Key figures from the consolidated financial statements

  • Operating revenues amounted to USD 483.1 million USD which is an increase of USD 62.7 million compared to 2016.
  • EBITDA amounted to USD 345.6 million. EBITDA ratio is 71.5% of revenues compared to 71.8% in the previous year.
  • Profit before unrealized financial items amounted to USD 153.4 million compared to USD 117.7 million in the previous year, which is an increase of 30.4% between years.
  • Profit for the year amounted to USD 108.0 million compared to USD 66.8 million in the previous year.
  • Net debt amounted to USD 2,042.6 million at year end and increased by USD 82.1 million in the year 2017.
  • Cash flow from operating activities amounted to USD 277.9 million which is an increase of 20.9% compared to 2016.

Hörður Arnarson, CEO:

“Landsvirkjun’s operations were successful in the year 2017. Revenues were higher than ever before and records were set regarding energy sales and production.  Electricity sales amounted to 14.3 TWh which was more than 5% increase from the previous year. Power generation records were set at five power plants during the year; Fljotsdalur, Sigalda, Budarhals, Sultartangi and Steingrimsstod.

External conditions were also beneficial. Aluminium prices, which still control a part of the Company’s revenues, were 23% higher than the previous year. Most of our largest customers’ operations went well during the year and demand for electricity from Landsvirkjun continued to be high. Last week Landsvirkjun signed a new contract with Advania Data Centers which increases the Company’s revenue.

All of these elements led to that profit before unrealised financial items was higher than ever before. This strong cash flow has enabled extensive investments in the last periods, but for the first time in the Company’s history we have had two power stations under construction at once, in addition to Budarhals power plant being operated in the year 2014. The first phase of the geothermal station at Theistareykir was commissioned in November, but the second phase will be commissioned in spring 2018. Constructions in Burfell II power station will soon come to a close, but it is expected to be commissioned in the middle of 2018. In total there will be 1.6 TWh produced in these three new power stations, which is an increase of 12% in production ability.

These constructions, which will be the base for stronger and safer revenue sources for the Company, have temporarily slowed down the decrease in debt. This extensive construction period will end in the year 2018 and then it is expected that the Company will be even more stable than before and better prepared for dealing with future projects.”

Full press release

Financial statements

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