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Strong financial position in challenging external conditions

November 22, 2019

Key figures from the interim financial statements

  • Profit before unrealized financial items amounted to USD 127.6 million compared to USD 133.4 million in the same period of the prior year which is a decrease of 4.4%.
  • The profit for the period was USD 89.0 million compared to USD 89.3 million in the same period of the prior year.
  • Operating revenues amounted to USD 372.4 million and decrease by USD 26.4 million (6.6%) from the same period prior
  • Net debt decreased by USD 171.8 million from the beginning of the year and amounted to USD 1,712.8 million at the end of September.
  • Cash flow from operations amounted to USD 222.4 million which is a decrease of 0.1% compared to the same period prior year.

Hörður Arnarson, CEO:

”The operation of Landsvirkjun’s power stations generally went well during the first nine months of the year. The newest power stations, Búrfell II and Theistareykir, have been successfully added to the power grid, with the latter receiving the IPMA Global Project Management Excellence Award. The new and improved Bjarnarflag geothermal power station is operational and showing improved efficiency over the old one, which is in line with our aim of maximising potential yield and value of the natural resources. The reservoir outlook is good at the beginning of a new water year on October 1.

The third quarter results reflect challenging external conditions, where large customers are seeing low product prices and aluminium price developments have had a negative effect on revenues. There was also revenue loss of approximately USD 10 million due to one of the potlines at Rio Tinto’s aluminium smelter in Iceland being temporarily shut down.

The company’s financial position continued to strengthen during the third quarter, despite these difficulties, and Landsvirkjun received good news in November when Moody’s upgraded the company’s credit rating to reflect these improvements. Net debt decreased by USD 172 million during the first nine months of the year. Landsvirkjun’s cash flow remains strong with cash generation of USD 222.4 million during the first nine months of the year which was mostly used to pay down debt.” 

Attachment: Press release

Attachment: Interim Financial Statement

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