Renegotiations with power intensive customers lead to stronger results
Key figures from the interim financial statements
- Profit before unrealised financial items amounted to USD 165.3 million, compared to USD 99.3 million in the same period of the prior year, an increase of 66.5%.
- The profit for the period was USD 144.5 million but was USD 55.1 million in the same period of the previous year.
- Operating revenues amounted to USD 339.3 million, increasing by USD 77.3 million (29.5%) from the same period of the prior year.
- Net debt decreased by USD 147.5 million from the beginning of the year and amounted to USD 1,353.3 million at the end of June.
- Cash flow from operations amounted to USD 234.9 million, which is an increase of 43.6% compared to the same period of the previous year.
- Average prices to industrial customers excluding transmission was USD 42.1 per megawatt hour, which is the highest price for any six months results in Landsvirkjun’s history.
Hörður Arnarson, CEO:
„The profit for the first half of the year is the highest in Landsvirkjun’s history. Profit before unrealised financial items increased by two-thirds compared to the same period of last year and amounted to just over USD 165 million. This increase can mostly be attributed to an increase in energy prices to power intensive customers. Operating revenues, amounting to USD 339 million, have never been higher for six month results since Landsvirkjun was founded.
Power station operations were good for the period. After a difficult first quarter, where frequent bad weather and a difficult reservoir status posed some difficulties for the company, spring arrived with high water inflows, resulting in a good status currently.
Power demand was the highest we have seen during the period, where delivery to industrial customers increased by 5%, while wholesale primary power delivery increased by 23%. At the same time, average prices excluding transmission to industrial customers were the highest ever for the first half of the year, USD 42.1 dollars per megawatt hour. This can be largely attributed to the renegotiations that have taken place in recent years and have ensured that most of Landsvirkjun’s customers now pay a similar price to that which they would pay in those countries that we compare ourselves with.“