Reykjavík Energy Financial Forecast 2026–2030 | ISK 50 Billion in Annual Investments
Significant investments are ahead for the companies within the Reykjavík Energy Group. According to the consolidated financial forecast for Veitur Utilities, ON Power, Reykjavík Fibre Network, Carbfix, and the parent company, total investments are expected to amount to ISK 245 billion over the forecast period. It covers the years 2026 through 2030. On average, annual investments are therefore likely to amount to nearly ISK 50 billion.
Strengthening Society’s Competitiveness
“Reykjavík Energy seeks to strengthen the competitiveness of Iceland,” says Sævar Freyr Þráinsson, the Group‘s CEO. “We aim to generate more energy for businesses and households, connect more homes to our environmentally friendly utility systems, and continue developing and upgrading them with new technology,” Þráinsson adds. He also points out that the financial forecast aims to improve society’s resilience in the face of climate change and other threats.
Þráinsson also highlights new opportunities that are emerging. “We are increasingly receiving inquiries from parties interested in establishing industries in Iceland because energy here is green and there are opportunities to permanently store carbon emissions from prospective industrial processes. In several locations in Iceland, we already have green industrial parks that could become arenas for such value creation,” says Þráinsson. “We hope that the government’s forthcoming industrial policy will encourage the realization of such ideas. This would allow us to capitalize on our competitive advantage and strengthen the sustainability of Icelandic industry,” says Sævar Freyr Þráinsson, CEO of Reykjavík Energy.
Substantial Growth
The forecast, which also includes an outlook for the current year, projects that:
- Annual revenues will grow from ISK 70.9 billion in the 2025 outlook to ISK 96.0 billion in 2030, an increase of 35%.
- Annual operating expenses will grow from ISK 30.9 billion to ISK 35.6 billion, an increase of 15%.
- Cash flow from operations will grow from ISK 32.2 billion in the 2025 outlook to ISK 42.1 billion in 2029, an increase of 31%.
- Reykjavík Energy‘s equity will grow from ISK 262 billion at year-end 2024 to ISK 341 billion at year-end 2029, an increase of 30%.
Reykjavík Energy‘s Board of Directors approved the forecast today, following prior approval of forecasts by the respective boards of the subsidiaries. The financial forecast will be reviewed as part of the consolidated financial plan of the City of Reykjavík.
“Outstanding” Sustainability Rating
In an updated ESG risk assessment of Reykjavík Energy by the rating agency Reitun, the group receives a rating of A3, or “outstanding.” The rating company applies its model to environmental, social, and governance factors. In the attached summary of the results (in Icelandic), it states: “Reykjavík Energy performs exceptionally well in Reitun’s ESG assessment, as in recent years, and continues to meet the increasing demands of this evaluation.”
Reykjavík Energy is an issuer of green bonds and considers that its sustainable performance provides it with significantly more favourable financing.
Contact:
Snorri Hafsteinn Þorkelsson
CFO
Snorri.Hafsteinn.Thorkelsson@orkuveitan.is
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