Increased economic activities in Iceland, more construction work, and cold weather comprise the main reasons for Orkuveita Reykjavíkur’s (OR; Reykjavík Energy) increased revenues by ISK 1,550 million in the first half of year 2018, compared to same period 2017. This materialized despite some utility-tariffs were decreased at the beginning of the year. For the same periods, operation cost increased by ISK 560 million, mainly caused by staff hiring to meet more extensive operations.
OR’s consolidated interim financial statements for Q2 2017 was approved by the Board of Directors today. It shows a bottom-line profit of ISK 4.2 billion for the first six months of the year. The group comprises Veitur Utilities, ON Power and Reykjavík Fiber Network, besides the parent company.
EBITDA and EBIT from OR’s operations improved compared to previous year. Aluminum derivatives in power purchase agreements were, however, more unfavorable than in year 2017, as the price of aluminum at the end of H1 2018 was lower. This affects bottom line-results.
OR’s board meeting today was the first since Iceland’s municipal elections in late May. Brynhildur Davídsdóttir continues as chairman of the board and Gylfi Magnússon as vice-chair.
Bjarni Bjarnason, CEO:
Reykjavík Energy’s operations and finances are solid. That allows to take a long-term view of into the future with respect to the development of utility systems and the service people expect us to deliver in the future. In our open annual meeting this spring, we especially discussed sewerage-issues, increased automation of services and the environmentally pivotal project of energy-shift in transportation. Now, we map this progress step by step.
ISK million H1 2014 H1 2015 H1 2016 H1 2017 H1 2018 Revenues 18,234 20,479 20,955 21,612 23,167 Expenses (6,379) (7,443) (8,215) (8,063) (8,626) thereof energy purchase and transmission (2,530) (3,256) (3,133) (2,898) (3,112) EBITDA 11,855 13,036 12,741 13,549 14,541 Depreciation (4,331) (4,799) (5,303) (4,706) (4,616) EBIT 7,524 8,237 7,438 8,842 9,926 Result of the period 3,831 2,260 5,029 7,311 4,200
OR‘s keys financial figures can be found on the on the Company‘s web-site: