Reykjavik, 2013-11-15 11:50 CET (GLOBE NEWSWIRE) -- The curtailing in Reykjavik Energy’s operations continues to yield improved operational results. Real cost of operations adjusted for inflation has decreased by ISK 1.6 billion since year 2009 and in nominal ISK the cost is practically the same. EBIT for the first nine months of 2013 amounted to ISK 12.8 billion but was ISK 11.0 billion in the same period 2012. The Company has repaid interest bearing debt by ISK 24.1 billion this year and the Plan, originated in 2011, is returning considerably better liquidity position than expected.
Reykjavik Energy’s Board of Directors today confirmed the Company´s interim financial statements which is prepared in accordance with International Financial Reporting Standards (IFRS).
Increasing EBITDA
EBITDA through the first nine months of 2013 amounted to ISK 19.0 million compared to ISK 17.8 billion in the same period of 2012. External factors, exchange rates against the ISK, price of aluminium and interest rates, have developed each in its own way. The developments of exchange rates against the ISK have been favourable for the Company but the price of aluminium is low, having a negative effect on financial items in the financial statements. Profit through Q3 2013 after taxes amounted to ISK 6.0 billion.
The Plan has now delivered ISK 40 bn. of the proposed ISK 51 bn.
The total return of the Plan, since it was initiated in March 2011, amounted to ISK 35.3 billion through Q3 2013. All parts of the Plan were on schedule except for sale of assets. Since end of Q3 2103, the sale of Reykjavik Energy’s headquarters, amounting to ISK 5.1 billion, has been completed. Taking that transaction into account, the Plan has returned ISK 40.4 billion of the ISK 51.3 it is intended to return in improved cash flow until the year end 2016.
Bjarni Bjarnason, CEO of Reykjavik Energy:
Reykjavik Energy´s operations are on track and finances improving. Our customers’ access to electricity, hot and cold water and sewerage for a reasonable price is always the main priority. In the Plan, which we have been executing since 2011, ambitious goals were set; goals that were considered hard to achieve. The employees of the Company, its Board, owners, and customers have jointly met this challenge.
When conducting the statutory unbundling of Reykjavik Energy by year-end, it is essential to maintain sharp focus on the Plan and its targets. Ahead are exciting times, in which Reykjavik Energy will present itself differently to its customers. It will make its mark in an increasingly competitive electricity market while insuring not losing sight of the public service it is trusted for.
Managers´ overview
All amounts are in ISK millions at each period´s price level.
| Operations through Q3 2013 | 2009 | 2010 | 2011 | 2012 | 2013 |
| Revenues | 17.960 | 19.444 | 24.388 | 27.286 | 28.806 |
| Expenses | (9.434) | (9.557) | (8.910) | (9.449) | (9.794) |
| EBITDA | 8.526 | 9.886 | 15.478 | 17.838 | 19.012 |
| Depreciation | (6.979) | (5.936) | (6.178) | (6.862) | (6.251) |
| EBIT | 1.546 | 3.950 | 9.300 | 10.976 | 12.762 |
| Realised financial income and (expenses) | (3.594) | (1.020) | (917) | (2.781) | (3.361) |
| Result before unrealised financial income and (expenses) | (2.047) | 2.930 | 8.383 | 8.195 | 9.401 |
| Unrealised financial income and (expenses) | (11.546) | 19.439 | (16.246) | (4.800) | (2.809) |
| Result before income tax according to the interim statements | (13.593) | 22.369 | (7.863) | 3.394 | 6.592 |
| Income tax | 2.305 | (5.575) | 2.519 | (814) | (620) |
| Result of the period | (11.288) | 16.794 | (5.344) | 2.580 | 5.972 |
Contact: Bjarni Bjarnason CEO +354 516 7707
