”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