Solid operations in a challenging environment
Landsvirkjun‘s profit from core operations for the first half of the year amounted to USD 143.4 million and cash flow from operations USD 163.4 million.
Net debt continues to decrease, the equity ratio is 62.2% and indebtedness is 1.44× EBITDA.
Difficult reservoir conditions and the resulting energy curtailments impacted financial performance for the first half of the year.
Hörður Arnarson, CEO:
„Landsvirkjun's operations were successful in the second quarter of the year, under somewhat challenging conditions. Following two outstanding operational years that were exceptional in the company's history, financial performance remains strong. Core operating profit for the first half of the year was 143.4 million US dollars decreasing by 27%. Operating revenue amounted to 279.1 million dollars compared to 331.8 million dollars in the same period last year.
The tight situation in water management left its mark on operations for the first half of the year, making curtailments inevitable and leading to a decrease in revenue from electricity sales. Furthermore, the expiration of price linkage to the Nordpool market in a contract with one power-intensive customer contributed to a fall in revenue, as well as a decrease in realized hedges from the previous year.“
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