Reykjavík Energy Reports Revenue Growth and Profit Surge

Reykjavík Energy Reports Impressive Growth in Financial Performance

Reykjavík Energy (RE; Orkuveita Reykjavíkur) has reported a remarkable increase in its revenue during the first half of the year, marking a 9.3% rise compared to the same period in the previous year. The profit for this period nearly tripled, reaching ISK 4.3 billion in the first six months of this year, an impressive leap from ISK 1.6 billion last year. This favorable financial performance is detailed in RE's consolidated interim financial statements covering the period from January 1 to June 30, 2024, which received approval from the Board of Directors.

Financial Highlights and Operational Insights

For the first half of the year, cash flow from operations stands at ISK 14.6 billion, showing an increase of 4.6% year-on-year. Meanwhile, the company invested ISK 13.7 billion in fixed assets. By June 30, the total assets of the group were recorded at ISK 495 billion, with a commendable equity ratio of 52.4%.

Strategic Investments and Sustainable Projects

Focus on Climate Initiatives

Sævar Freyr Þráinsson, RE's spokesperson, expressed satisfaction with the company’s growth trajectory, emphasizing the role of Reykjavík Energy as a catalyst for essential transitions. The company is actively engaged in significant climate-related projects, including the expansion of energy production to meet both current and future demands as well as exploring carbon sequestration initiatives both locally and abroad. This comprehensive strategic approach necessitates substantial investments in advanced equipment and the enhancement of employee expertise.

Investment Details and Project Outcomes

In the first half of the year, RE's total investments reached nearly ISK 14 billion, showcasing how their operational strengths contribute to impactful sustainable projects. The cash flow from operations during this period amounted to ISK 14.6 billion, reinforcing the solid financial foundation on which these initiatives are built.

Commitment to Sustainable Growth and Energy Transition

New Strategic Initiatives

Sævar Freyr highlighted that RE's updated overall strategy is centered around fostering sustainable growth. This is evidenced by their successful efforts in promoting sales through ON Power's electric vehicle charging network, which has seen an almost fourfold increase over the past two years, aiding in the energy transition within the transportation sector. Additionally, he noted that the demand for hot water among customers of Veitur Utilities has surged by 11% compared to the first two quarters of the previous year, underscoring the effectiveness of their ongoing initiatives.

Recognition for Sustainability Efforts

This year, Reykjavík Energy has received high commendations for its sustainability initiatives. The company has achieved an ESG rating of 88 out of 100 points from Reitun, highlighting its strengths in managing environmental and climate issues. Furthermore, Reykjavík Energy is recognized among the top companies in Iceland in terms of climate responsibility, as evaluated by PwC in its Sustainability Index, which assessed the largest businesses in the country.

Contact Information

For further inquiries, please contact:
Snorri Hafsteinn Thorkelsson
CFO
Email: snorri.hafsteinn.thorkelsson@orkuveitan.is

Frequently Asked Questions

What is the main highlight of Reykjavík Energy's financial report?

The main highlight is a 9.3% increase in revenue and a profit surge to ISK 4.3 billion in the first half of the year compared to the previous year.

How much did Reykjavík Energy invest in fixed assets recently?

Reykjavík Energy invested ISK 13.7 billion in fixed assets in the first half of the year.

What are some key sustainability initiatives undertaken by Reykjavík Energy?

Reykjavík Energy focuses on increasing energy production, carbon sequestration projects, and enhancing its electric vehicle charging network.

What recognition has Reykjavík Energy received for its sustainability efforts?

The company received an ESG rating of 88 out of 100 from Reitun and is considered a leader in climate issues by PwC's Sustainability Index.

Who can be contacted for more information regarding Reykjavík Energy?

For more information, interested parties can contact Snorri Hafsteinn Thorkelsson, CFO, via email at snorri.hafsteinn.thorkelsson@orkuveitan.is.

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