All-time best results – proposal of a USD 140 million dividend to the nation


Key figures from the consolidated financial statements

Read the Financials Statement 2022
  • The State has acquired Landsvirkjun’s 64.73% stake in Landsnet hf. and paid USD 305 million according to the acquisition agreement.
  • Profit before unrealised financial items amounted to USD 315.9 million, compared to USD 183.3 million in the previous year which is an increase of 72.3%.
  • The profit from continued operations, after the State’s acquisition of Landsnet hf., was USD 298.7 million but was USD 112.4 million for the prior year, an increase of 166% between years. The profit for the year amounted to USD 161.9 million but was USD 148.6 million in the previous year.
  • Operating revenues amounted to USD 608.6 million and increased by USD 123.5 million (25.5%) from the previous year.
  • Net debt decreased by USD 657.3 million between years and was USD 843.5 million at year end.
  • Cash flow from operating activities amounted to USD 435.9 million, an increase of 34.8% from the previous year.
  • The average price to industrial customers was USD 42.9 per megawatt hour which is the highest price in Landsvirkjun’s history.
  • A dividend amounting to USD 120 million was paid during the year and paid taxes amounted to USD 41 million. A total of USD 161 million.
  • During the Annual General Meeting the Company’s Board of Directors intend to propose a USD 140 million dividend payment to the owners.

Hörður Arnarson, CEO

Read the press release

“The result for the year was the best in Landsvirkjun’s history. Profit before unrealised financial items, which is the benchmark we use to evaluate the company’s results, was USD 315.9 million and increased by just over 72% between years. Operating revenues increased by just over 25% from the previous record year 2021. The 2022 operating results are therefore unique in the company’s 58 year history.

This accomplishment can be attributed to clear operating goals and renegotiations with most of our largest customers over the past few years. They now pay a price similar to that which is paid in the countries we compare ourselves with. The operating environment for power intensive customers was generally favourable during the year and it is safe to say that their and Landsvirkjun’s success is, to a large extent, intertwined. The average price to power intensive industry companies, excluding transmission cost, was just under USD 43 per megawatt hour and has never been higher.

We continued along the course of lowering debt. Net debt decreased by just over USD 657 million from the beginning of the year. We are now at a point where the key ratio net debt/EBITDA is very favourable compared with our sister companies in the Nordic countries, net debt is now only 1,85 times operating profit before depreciation. Landsvirkjun’s ability to invest and pay dividends has increased along with this improved debt position and the company’s Board of Directors will propose a dividend of USD 140 million for last year during the Annual General Meeting.

Despite the company’s good results and positive outlook there are currently some warning signs for the nation’s energy affairs. Landsvirkjun’s energy system is almost at full capacity, with respect to both energy and power. The demand for green energy is high, both from current customers and potential new and interesting entities. We can regrettably only partially meet this demand and have therefore had to say no to various interesting and promising projects which have been enquiring about power contracts.

We are currently working on getting the required permits for developing power generating capacity, which we have been preparing for decades. This is how we want to provide enough future energy to fulfil society’s needs for energy transition and quality of life, not least in light of the government’s ambitious climate goals.

Towards the end of the year an agreement was reached with the State to acquire Landsvirkjun’s stake in Landsnet. This was a positive move, as Landsvirkjun has long expressed the opinion that a change to Landsnet’s ownership was necessary, as it is unfortunate that a company which has a monopoly on energy transmission is owned by a energy generating company and a distributor.

Power station operations were good during the year but the workload was high on the company’s employees, due to of frequent bad weather and slow reservoir inflows. They deserve praise for their selfless and professional effort during these trying times.“