„Challenging external conditions left their mark on the operations of Landsvirkjun during 2019, as they did the previous year. Low product prices for some of our large customers negatively affected revenues, as some contracts are still linked to aluminium prices. A shutdown of potroom three at the Rio Tinto aluminium smelter in Straumsvík resulted in a USD 16 million revenue shortfall.
Although the storm in December did not cause disruptions to the operations of Landsvirkjun’s power stations, it did affect the operation of Landsnet, a subsidiary of Landsvirkjun. This revealed the urgent need to strengthen the power distribution network in Iceland.
The company continues to lower net debt, which is now down to USD 1,691 million and has decreased by USD 193 million during the year. Moody's, the rating agency, improved the company’s credit rating during the year and S&P Global Ratings changed their outlook from stable to positive. Profit before unrealized financial items, which is the benchmark Landsvirkjun uses to evaluate the company’s core operations, was acceptable for these operating conditions, decreasing by 5.9% between years.“