Historically high cash generation
Key figures from the interim financial statements
Profit before unrealised financial items amounted to USD 153.9 million, compared to USD 92,4 million in the same period of the prior year, which is an increase of 66,6%.
The profit for the period was USD 102.6 million, but was USD 61.2 million in the same period of the year before.
Operating revenues amounted to USD 396.9 million, increasing by USD 69.0 million (21.0%) from the same period of the previous year.
Net debt decreased by USD 138.4 million from the beginning of the year and amounted to USD 1,537.4 million at the end of September.
Cash flow from operations amounted to USD 239.1 million, an increase of 40.8% compared to the same period of the prior year.
Hörður Arnarson, CEO:
“The company’s operating environment continued to improve during the third quarter of the year. Our customers have gradually increased their energy usage as their business environment has continued to improve. 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 at the beginning the COVID-19 pandemic. Landsvirkjun’s power generation capacity is now approaching full utilisation.
The average aluminium price during the period was almost twice as high as for the same period of the prior year, while the price on the Nord Pool market was five times as high. This was after the historically low prices of last year. As some of our energy contracts with industrial customers are linked to these two variables, revenues increased significantly or by USD 69 million compared with the same period of the prior year.
These improvements are clearly visible in the results for the first nine months. Profit before unrealized financial items, which is the criterion used by Landsvirkjun in evaluating the company's core operation, increased by about 67% from the same period of 2020. Net debt continued to decrease and was USD 138 million lower than at the start of the year.
Operating performance was good at the company‘s power stations during the period although the flow into Landsvirkjun’s reservoirs in southern Iceland was quite low this summer. The company continues to place strong emphasis on innovation projects countrywide, for example preparation for the production of electrochemical fuels, which can become a key factor in removing the country’s reliance on fossil fuels. Landsvirkjun’s generation of renewable energy continues to be a very important contribution to climate change.“