Stable results at Orkuveita Reykjavíkur

26. aug 2019

Borhola úr lofti

Results of Orkuveita Reykjavíkur‘s operations in the first half of year 2019 were similar to recent years. The group‘s interim consolidated financial statements for the first half of the year were approved by the Board of Directors today. Besides the parent company, the group comprises ON Power, Veitur Utilities and Reykjavík Fibre Network.

OR Interim Financial Statements Q2 2019

Peaking investments

Unusually extensive construction of new housing in the company’s principal service area and renewal of utility mains contribute to much investment in the first half of year 2019. Should forecasts materialise, this need will decrease in the next years and renewal of mains is well on its way. Therefore, decrease in investments is foreseeable.

OR Group’s investments amounted to ISK 7.7 billion in H1 2019, compared to ISK 6.5 billion in same period 2018. New and maintenance investments in green energy systems were among the projects partially financed by issuance of Green Bonds in Q1 and Q2 this year. In the three tenders performed this year, demand has surpassed supply and rates have been favourable. Furthermore, the buyers have been more diverse than in earlier bond-offerings by OR.

Bjarni Bjarnason, CEO:

The results of Orkuveita Reykjavíkur and the subsidiaries’ operations are stable, though we see effects of a blooming construction industry. Related investments on our behalf are forecast to decrease in the next years. Implementation of smart metering that is underway, will, however, limit the decrease in our total investments.

Orkuveita Reykjavíkur’s finances are solid and despite these large investments, equity ratio improves slightly year-on-year.

Managers’ Overview

ISK million H1 2015 H1 2016 H1 2017 H1 2018 H1 2019
Revenues 20,479 20,955 21,612 23,167 23,502
Expenses (7,443) (8,215) (8,063) (8,626) (9,571)
EBITDA 13,036 12,741 13,549 14,541 13,931
Depreciation (4,799) (5,303) (4,706) (4,616) (5,728)
EBIT 8,237 7,438 8,842 9,926 8,203
Income tax 133 (1,474) (2,395) (77) 276
Results for the period 2,260 5,029 7,311 4,200 3,349

Key financial figures

More key financial figures for the Reykjavík Energy group can be found here on website along with financial targets.