Improved Operating Results

Orkuveita Reykjavíkur 

25.05.2012 17:55
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Reykjavik, 2012-05-25 17:55 CEST (GLOBE NEWSWIRE) -- Operating profits (EBIT)
of Orkuveitu Reykjavikur (OR - Reykjavik Energy) were ISK 4.9 billion in Q1
2012. These results are an improvement by 42% compared to Q1 2011. Unfavourable
development of external factors - namely aluminium price and ISK exchange rates
- continue to affect OR's overall profits. 

Between Q1 in years 2011 and 2012, OR's operating income increased by a fifth
while expenses merely by 5%. The reasons are successful implementation of a
comprehensive financing Plan, approved by the Board of Directors and OR's
owners in March 2011. Increased cost between the comparative periods in 2011
and 2012 is less than the increase of the index at the same time, even though
there have been various increases in prices. Increased revenue is explained by
tariff increase as part of the Plan. 

The attached OR Q1 2012 consolidated interim financial statements were approved
by the Board of Directors today. They have been prepared in accordance with
International Financial Reporting Standards (IFRS). 

Bjarni Bjarnason, CEO of Orkuveita Reykjavikur:

These results indicate that OR's day-to-day operations are in good order. The
progress made in revenues and costs shows that our staff, as well as our
customers, have contributed to the turnaround of OR's operations. Recent
feedback by OR's financiers convinces us that these changes are duly
appreciated. 

OR's debt are still a major issue and the unfavourable development of external
factors keeps us alert and proves that resilience is needed in the
implementation of the Company's ambitious financing plan. 



Managers' Overview

All amounts are in ISK million at the price level for each year.

Q1 Operations for each year             2008     2009     2010     2011     2012
--------------------------------------------------------------------------------
                                                                                
-----------------------------------                                     --------
Operating income                       6.079    6.541    7.422    8.693   10.571
-----------------------------------                                     --------
                                                                                
-----------------------------------                                     --------
Operating expenses                   (2.679)  (3.206)  (3.189)  (3.226)  (3.386)
-----------------------------------                                     --------
                                                                                
-----------------------------------                                     --------
EBITDA                                 3.400    3.335    4.232    5.467    7.185
-----------------------------------                                     --------
                                                                                
-----------------------------------                                     --------
Depreciation                         (1.632)  (2.374)  (1.952)  (2.025)  (2.295)
-----------------------------------                                     --------
                                                                                
-----------------------------------                                     --------
Operating profits, EBIT                1.769      961    2.281    3.442    4.890
-----------------------------------                                     --------
                                                                                
-----------------------------------                                     --------
Realised financial income and        (1.921)    (916)    (191)    (431)    (975)
 (expenses)                                                                     
-----------------------------------                                     --------
                                                                                
-----------------------------------                                     --------
(Loss) profit before unrealised        (152)       45    2.090    3.011    3.915
 financial income                                                               
-----------------------------------                                     --------
                                                                                
-----------------------------------                                     --------
Unrealised financial income         (20.766)    1.638    8.034      876  (9.186)
-----------------------------------                                     --------
                                                                                
-----------------------------------                                     --------
(Loss) profit before income tax     (20.919)    1.684   10.123    3.887  (5.271)
 acc. interim financial statements                                              
-----------------------------------                                     --------
                                                                                
-----------------------------------                                     --------
Income tax                             3.676      129  (2.936)  (1.569)    1.272
-----------------------------------                                     --------
                                                                                
-----------------------------------                                     --------
(Loss) profit                       (17.243)    1.813    7.187    2.318  (3.999)
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         Bjarni Bjarnason
         CEO
         +354 516 7707.
News Source: NASDAQ OMX



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Language:     English
Company:      Orkuveita Reykjavíkur
              
               
              Iceland
Phone:        
Fax:          
E-mail:       
Internet:     
ISIN:         IS0000010775
WKN:          
 
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