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Landsvirkjun‘s Financial Statements 2019

February 28, 2020

Acceptable results in challenging external conditions

Key figures from the consolidated financial statements

  • Profit before unrealized financial items amounted to USD 173.3 million compared to USD 184.1 million in the previous year, amounting to a 5.9% decrease between years.
  • The profit for the year amounted to USD 112.7 million but was USD 121.0 in the previous year.
  • Operating revenues amounted to USD 509.6 million which is a decrease of USD 24.3 million (4.6%) compared to the previous year.
  • Net debt has decreased by USD 193.1 million since the end of 2018 and amounted to USD 1,691.5 million at year end 2019.
  • Cash flow from operating activities amounted to USD 295.8 million which is in line with the previous year.

Hörður Arnarson, CEO:

„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.“

Full press release

Financial statements

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