Forecast of Investments and Growth for Reykjavík Energy Group
Exciting Financial Forecast for Reykjavík Energy Group
Transformative investments are on the horizon for the Reykjavík Energy Group. The consolidated financial forecast anticipates impressive investments totaling ISK 245 billion from 2026 to 2030 across Veitur Utilities, ON Power, Reykjavík Fibre Network, and Carbfix. Thus, annual investments are projected to be nearly ISK 50 billion.
Building a Competitive Future
According to Sævar Freyr Þráinsson, the Group’s CEO, “Reykjavík Energy aims to enhance Iceland’s competitiveness.” The organization is dedicated to providing more renewable energy to households and businesses while also integrating advanced technologies into the utility systems.
Þráinsson emphasizes that this financial forecast is pivotal for fortifying society's resilience against climate change and other potential challenges. “We’re seeing a rise in interest for industry establishment in Iceland, thanks to our green energy resources and the capability for permanent carbon storage,” he explains.
He elaborates on the opportunities presented by Iceland's green industrial parks, which could foster significant economic growth and sustainability. “We believe that supportive government policies will propel these ideas into reality, allowing us to leverage our competitive edge,” adds Þráinsson.
Anticipating Substantial Growth
The financial outlook reveals promising projections, including:
- Annual revenues escalating from ISK 70.9 billion for the 2025 forecast to ISK 96.0 billion by 2030, reflecting a substantial 35% increase.
- Operating expenses are also expected to rise from ISK 30.9 billion to ISK 35.6 billion, an increase of 15%.
- Projected cash flow from operations will grow from ISK 32.2 billion to ISK 42.1 billion, representing a 31% rise.
- Furthermore, Reykjavík Energy’s equity is anticipated to increase from ISK 262 billion at the end of 2024 to ISK 341 billion by 2030, reflecting a 30% expansion.
This optimistic forecast has been approved by the Board of Directors, following endorsements from the subsidiaries' boards. It is set to be integrated into the City of Reykjavík's comprehensive financial planning.
Exceptional Sustainability Recognition
In light of its impressive ESG risk assessment by Reitun, Reykjavík Energy received an A3 rating, categorized as “outstanding.” This evaluation highlights the group’s remarkable performance in environmental, social, and governance criteria, showcasing their commitment to sustainability.
The organization is also recognized as a green bond issuer, strengthening its standing in the financial industry due to its sustainable practices, enabling better financing opportunities.
Contact Information
For further inquiries, please reach out to:
Snorri Hafsteinn Þorkelsson
CFO
Snorri.Hafsteinn.Thorkelsson@orkuveitan.is
Frequently Asked Questions
What is the total investment forecast for Reykjavík Energy?
The total investment forecast for Reykjavík Energy is ISK 245 billion for the period from 2026 to 2030.
Who is the CEO of Reykjavík Energy?
The CEO of Reykjavík Energy is Sævar Freyr Þráinsson.
What sustainability rating did Reykjavík Energy receive?
Reykjavík Energy received an A3 sustainability rating, classified as “outstanding” by Reitun.
What growth is projected for revenues by 2030?
Revenues are projected to grow from ISK 70.9 billion in 2025 to ISK 96.0 billion in 2030, which is a 35% increase.
How significant is the growth in equity for Reykjavík Energy?
The equity for Reykjavík Energy is expected to grow from ISK 262 billion at the end of 2024 to ISK 341 billion by the end of 2030.
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