Reykjavík, 2016-11-28 16:16 CET (GLOBE NEWSWIRE) -- Orkuveita Reykjavíkur’s (OR; Reykjavík Energy) operations through Q3 2016 showed solid and good results. Revenues are stable but results of recent labor bargaining are apparent in the attached interim consolidated financial statements. Earnings in terms of EBIT and EBITDA are similar to recent years. The strengthening of the Icelandic krona has a positive impact on results, both the revenues and the balance sheet at the end of the period.
OR’s net debt has decreased by ISK 17.8 bin since the beginning of the year. Thereof the strengthening of the krona has decreased debt by ISK 3.8 bin. That amount also affects overall results which show a profit of ISK 9.4 bin for the first nine months of year 2016.
OR’s interim consolidated financial statements Q3 2016 were approved by the board of directors today.
Reduced tariffs
Yesterday, Veitur Utilities announced lowering of tariffs at year-end. Veitur Utilities is OR’s subsidiary responsible for the regulated operations of district heating, water works, electricity distribution, and sewage systems. Rationalization in operations allows for and demands lowering tariffs of electric distribution by 5.8% and of potable water tariffs by up to 11.2%. Substantial investments in heating and sewage systems does not allow for reduction of tariffs.
Bjarni Bjarnason, CEO
Our customers will benefit directly from the progress in the group’s operations when, at year-end, tariffs for parts of the utilities operations will be lowered. Rationalization in regulated operations oblige us to return the benefits to the customers of those utilities showing the best operating results.
Managers’ overview
| Amounts are in ISK million | Q3 2012 | Q3 2013 | Q3 2014 | Q3 2015 | Q3 2016 |
| Revenues | 27,286 | 28,806 | 26,960 | 28,951 | 29,921 |
| Expenses | (9,449) | (9,794) | (9,195) | (10,718) | (11,785) |
| thereof energy purchase and transmission | (3,490) | (3,902) | (3,644) | (4,645) | (4,555) |
| EBITDA | 17,838 | 19,012 | 17,766 | 18,234 | 18,136 |
| Depreciation | (6,862) | (6,251) | (6,510) | (7,172) | (7,584) |
| EBIT | 10,976 | 12,762 | 11,256 | 11,061 | 10,551 |
| Result of the period | 2,580 | 5,796 | 7,879 | 3,093 | 9,368 |
| Cash flow statement: | |||||
| Paid interest expense | (3,869) | (3,448) | (3,420) | (3,181) | (2,600) |
| Net cash from operating activities | 15,572 | 16,934 | 17,885 | 18,126 | 17,305 |
Contact: Mr. Ingvar Stefansson CFO Tel. +354 516 6100
