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Secure power generation in pandemic times

May 15, 2020

Key figures from the interim financial statements

  • Profit before unrealised financial items amounted to USD 44.0 million compared to USD 50.5 million in the same period of the prior year which is a decrease of 12.7%.
  • The profit for the period was USD 31.5 million compared to USD 41.2 million in the same period of the prior year.
  • Operating revenues amounted to USD 126.2 million decreasing by USD 7.0 million (5.3%) from the same period of the prior
  • Net debt decreased by USD 54.2 million from the beginning of the year and amounted to USD 1,637.3 million at the end of March.
  • Cash flow from operations amounted to USD 75.4 million which is a decrease of 10.2% compared to the same period of the prior year.

Hörður Arnarson, CEO:

“The first quarter results were acceptable in light of the challenging external conditions, with electricity sales decreasing by 3.4% compared with the same quarter of last year. Electricity prices decreased for those contracts that are linked to aluminium prices and Nord Pool electricity prices. Profit before unrealised financial items was USD 44 million, compared with USD 50.5 million for the same period of last year.

The first quarter results are considerably affected by the COVID-19 pandemic, and the effects will be increasing in the coming months. Landsvirkjun’s most important task during the pandemic has been to ensure the generation and delivery of power to customers, while at the same time guaranteeing the health and safety of the company’s employees.

After substantial debt repayments over the past few years, the company is in a good position to address the challenges ahead and to support the local community during these difficult times. The company recently announced a 12 billion Icelandic krona (USD 85m) contribution towards various new construction-, renovation- and maintenance  projects over the next three years, in addition to offering temporary discounts on electricity prices to industrial customers, amounting to ISK 1.5 billion (USD 11m). We also announced the launch of new research and development projects in southern- and northern Iceland, in cooperation with local stakeholders, in addition to plans to hasten projects relating to digital development. It was also decided that Landsvirkjun would pay a 10 billion Icelandic krona (USD 70m) dividend to the treasury this year, which is more than double the amount paid last year.”

Attachment: Press release

Attachment: Interim Financial Statement

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