Record revenues and strong cash generation

• Profit before unrealised financial items amounted to USD 108.7 million, compared to USD 77.3 million for the same period of the prior year, an increase by 40.6%.
• The profit for the period was USD 91.6 million, compared to USD 112.5 million for the same period of the prior year.
• Operating revenues amounted to USD 175.4 million, increasing by USD 28.4 million (19.3%) from the same period of the prior year.
• Net debt decreased by USD 136.7 million from the beginning of the year and amounted to USD 711.3 million at the end of March.
• Cash flow from operations amounted to USD 144.4 million, which is an increase of 42.9% compared to the same period of the prior year.
• During the annual general meeting it was agreed to pay a dividend of USD 140 million.
• Landsvirkjun does not prepare consolidated interim financial statements with its subsidiaries Landsvirkjun Power ehf. and Icelandic Power Insurance Ltd, because their impact is considered insignificant. Instead, the financial statements are prepared according to IAS 27 Separate Financial Statements.

“First quarter results were excellent. Profit before unrealised financial items, which reflects Landsvirkjun’s core operations, increased by more than 40% compared to the first quarter of 2022. Operating revenues increased by almost 20% year on year due to increased electricity sales, high energy prices to power intensive customers, and revenues from realised hedges.

Meanwhile, Landsvirkjun’s operating expenses decreased by 8% year on year. Cash generation was also strong in the first quarter, as cash flow from operating activities increased by 43% year on year and was USD 144.4 million.

Power station operations were superb in the first quarter, with a 5% increase in energy generation year on year. However, delivery of controllable load to data centres and fish meal factories had to be reduced repeatedly during the period since the Company’s electricity system was operating at maximum capacity.

Landsvirkjun is working hard to acquire the relevant licences needed to increase energy generation to meet the apparent domestic demand for energy and the energy transition.”