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Half year results

·3-min read

Operating revenues regain their strength

Key figures from the interim financial statements

  • Profit before unrealized financial items amounted to USD 99.3 million, compared to USD 73.2 million in the same period of the prior year, an increase of 35.7%.

  • The profit for the period was USD 55.1 million but was USD 43.6 million in the same period of the previous year.

  • Operating revenues amounted to USD 262.0 million, increasing by USD 34.9 million (15.4%) from the same period of the prior year.

  • Net debt decreased by USD 84.7 million from the beginning of the year and amounted to USD 1,591.1 million at the end of June.

  • Cash flow from operations amounted to USD 163.5 million, which is an increase of 26.1% compared to the same period of the previous year.

Hörður Arnarson, CEO:

„The Company’s operating environment continued to improve during the second quarter of the year. Our customers’ business environment continues to improve and they have gradually increased their energy usage. Most are running at full capacity, as demand for their products has regained prior strength and in many cases has risen to a higher level than before the coronavirus pandemic. PCC Bakki Silicon restarted its plant, power contracts were signed with Verne Global and Advania Data Centres and a new contract was signed in July with Norðurál, a contract which enables the company to, among other things, increase the value of its products. The average price on the Nord Pool power market was around USD 50 per megawatt hour and quadrupled from the previous year. This development has strengthened Landsvirkjun’s competitiveness. At the same time, the average power price to industrial customers was just over USD 28 per megawatt hour and has never been higher.

The results for the first half of the year clearly illustrate this improvement. Profit before unrealised financial items, which is the criterion used by Landsvirkjun in evaluating the Company's core operation, increased by just under 36%, compared to the same period of 2020. Net debt decreased by USD 84.7 million during the first half of the year. These are positive results, not least because of the circumstances and uncertainty that arose last year due to the pandemic. Our credit rating at S&P was upgraded by one tier in June, because of a strong financial position and the ability and effort of our employees to address the challenges posed by the pandemic.

Demand for renewable energy is increasing rapidly, along with emphasis on climate change issues, which is primarily centred around phasing out fossil fuels and replacing them with renewable energy, along with economical energy usage. End users and companies are now the driving force behind this development, whereas before it was governments and international organisations. This will create opportunities for Iceland to create even more economic value and employment, in addition to being a valuable contribution in the global fight against climate change.“

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