Reykjavík Energy’s Q3 2025 Interim Financial Results
Reykjavík Energy‘s (Orkuveita Reykjavíkur) Board of Directors approved today the interim financial statements for the first nine months of 2025. The consolidated profit amounted to ISK 6.7 billion, compared to ISK 5.1 billion in the same period in 2024 — an improvement of 31%. Operating revenues increased by 3.9% year-on-year, while operating expenses rose by 2.0%. The interim financial statements cover the Reykjavík Energy Group, which includes, in addition to the parent company, Veitur Utilities, ON Power, Reykjavík Fibre Network, and Carbfix.
Solid Financial Position
“We want to respond to the government’s call for increased resilience and security in the community’s basic infrastructure. We have therefore emphasised expanding energy generation, particularly for Veitur Utilities’ district heating systems, but also on increasing sustainable electricity production,” says Sævar Freyr Þráinsson, CEO of Reykjavík Energy. “We are also ready to better protect our water works and water sources from potential threats. The world’s poor progress in tackling climate change, accompanied by rising sea levels, makes the long-term outlook for wastewater systems more challenging,” Sævar Freyr adds.
Cash flow from operations, which among other things supports investment activities, amounted to ISK 22.1 billion during the first nine months of the year — a 6.9% increase compared to the previous year.
Managers’ Overview
| Operating year | 2025 | 2024 | 2023 | 2022 | 2021 |
| Amounts are at each year’s price level in ISK millions | 1.1.-30.9. | 1.1.-30.9. | 1.1.-30.9. | 1.1.-30.9. | 1.1.-30.9. |
| Revenues | 49,984 | 48,277 | 43,327 | 39,741 | 37,663 |
| Expenses | -20,960 | -20,549 | -17,736 | -15,516 | -13,339 |
| Thereof energy purchase and distribution | -5,028 | -5,373 | -4,993 | -4,884 | -4,174 |
| EBITDA | 29,024 | 27,728 | 25,591 | 24,225 | 24,325 |
| Depreciation and amortisation | -12,817 | -12,495 | -11,544 | -10,449 | -9,966 |
| EBIT | 16,207 | 15,233 | 14,047 | 13,776 | 14,359 |
| Cash flow statement | |||||
| Received interest income | 274 | 196 | 117 | 64 | 109 |
| Paid interest expenses | -6,182 | -5,768 | -5,119 | -3,437 | -3,174 |
| Net cash from operating activities | 25,473 | 24,650 | 22,445 | 21,714 | 21,832 |
| Working capital from operations | 22,095 | 20,666 | 19,650 | 19,507 | 18,798 |
| Liquid funds | 30,9,2025 | 30,9,2024 | 30,9,2023 | 30,9,2022 | 30,9,2021 |
| Deposits and marketable securities | 16,100 | 10,229 | 11,273 | 13,962 | 13,195 |
| Cash and cash equivalents | 10,517 | 9,743 | 5,131 | 7,499 | 17,998 |
| Undrawn credit lines | 29,385 | 13,080 | 8,850 | 4,500 | 10,198 |
| Liquid funds total | 56,002 | 33,052 | 25,253 | 25,961 | 41,391 |
Revised Financial Forecast
Despite Reykjavík Energy’s strong financial position, the Board today approved amendments to the Group’s financial forecast, originally published on 7 October. The reason is that Norðurál, the Group’s largest single customer, has informed Reykjavík Energy that it will default on payments due to repeated equipment failures at its aluminium smelter in Grundartangi.
The amendments to the forecast include:
- ISK 1 billion lower operating profit for the current year compared to the previous forecast.
- ISK 2 billion reduction in operating costs in 2026.
- ISK 6 billion reduction in investments that same year.
- ISK 2 billion reduction in dividend payments in 2026.
“We must act responsibly and temporarily trim our sails should there be delays in the agreed payments for electricity. According to information from Norðurál, this temporary reduction could last throughout 2026,” says Sævar Freyr. According to the power purchase agreement between Reykjavík Energy and Norðurál, the company is obliged to pay for the contracted electricity, whether it consumes it or not. However, Norðurál has now stated that it will only pay for the electricity the smelter receives while repairs are being carried out.
“If we are to believe the statements that the owner of Norðurál has made to markets in the United States, Norðurál is insured against its losses, as this is a general malfunction. However, Norðurál’s notice to Reykjavík Energy is such that the declared payment default is said to be due to uncontrollable events similar to volcanic eruptions or acts of war. There seems to be an inconsistency there. We will get paid for the electricity — of that I have no doubt — but I am very disappointed that the company chooses to behave in this manner, failing to make contracted payments, yet expecting the contracted electricity to be available whenever it suits them,” says Sævar Freyr.
Contact:
Snorri Hafsteinn Þorkelsson
CFO
snorri.hafsteinn.thorkelsson@orkuveitan.is
Attachments
- Reykjavík Energy Consolidated budget 2025-2030 – Updated in November 2025
- Orkuveita Reykjavíkur – Condenced Consolidated Interim Financial Statements 1.1.-30.9.2025
