Strong operations despite external turbulence


Economic conditions continue to affect operations but net debt continues to decrease

  • Profit before unrealised financial items amounted to USD 92.4 million, compared to USD 129.1 million in the same period of the prior year, which is a decrease of 28.4%.
  • The profit for the period was USD 61.2 million, compared to USD 90.1 million in the same period of the prior year.
  • Operating revenues amounted to USD 328.0 million, decreasing by USD 44.5 million (11.9%) from the same period of the prior year.
  • Net debt decreased by USD 56.7 million from the beginning of the year and amounted to USD 1,634.7 million at the end of September.
  • Cash flow from operations amounted to USD 169.8 million which is a decrease of 23.6% compared to the same period of the prior year.

Hörður Arnarson, CEO:

"The economic conditions caused by the COVID-19 pandemic continue to affect Landsvirkjun’s operations. These conditions are putting pressure on demand and product prices of the company’s customers. However, after a decade of debt reduction the company is in a strong position to weather the storm and support its customers during these difficult times. As previously mentioned, our industrial customers have received temporary discounts and the company has taken an active role in the effort to support the economy by undertaking various construction-, renovation- and research- and development projects throughout Iceland.

One positive development is that net debt has decreased during the first nine months of the year despite these difficult conditions and is currently around 57 million dollars lower than at the beginning of the year. Profit before unrealised financial items, the measure we use when evaluating the company's core operation, decreases by 28% compared to the same period of last year and amounts to 92.4 million dollars.

The company’s operations were strong during the period despite the economic turbulence. In light of the changing market conditions we decided to split the marketing and business development department into two separate departments, namely energy sales on the one hand and business development and innovation on the other. Despite current economic challenges, there are a number of opportunities for Landsvirkjun going forward, for example in green hydrogen production, eco-industrial parks and other green innovations like the Orkídea- and EIMUR projects in the south and north of Iceland.

The outlook for the company’s operations and the world economy continues to be uncertain. As before, it depends on the containment of the coronavirus. Recent positive news of vaccine developments are promising and if deployed soon the world economy can hopefully start recovering."