Annual Financial Statements of Orkuveitan | Robust Growth and Solid Performance
Orkuveitan has published its consolidated financial statements for the year 2024, presenting highly positive results. The Group’s profit increased by 45% from 2023, amounting to ISK 9.3 billion. A dividend proposal of ISK 6.5 billion has been put forth. The Group comprises the parent company, Veitur, Orka náttúrunnar, Ljósleiðarinn, and Carbfix. Its shareholders are the City of Reykjavík, the Municipality of Akranes, and the Municipality of Borgarbyggð.
“The excellent operating results last year provide a strong foundation for Orkuveitan’s new phase of growth,” says CEO Sævar Freyr Þráinsson. “We have met significant demand for our services and will continue to invest responsibly in innovation, sustainability, and robust infrastructure.”
Steady Growth and Increased Investments
The Group’s revenue rose 9.2% from 2023 to 2024, while operating expenses grew 8.8% over the same period. Cash flow from operations amounted to ISK 29.1 billion, an increase of 6.0% year-on-year. Investments totaled ISK 30.9 billion, representing a 5.8% increase.
Sustainability is strongly emphasized in the annual report. For the second consecutive year, Orkuveitan publishes data in line with the EU Taxonomy Regulation, showing the extent to which its operations meet strict global standards for environmental sustainability. In 2024, Orkuveitan also issued an updated framework for its green financing activities, which received the highest “dark green” rating from an international rating agency. This robust financial position and a clear sustainability assessment have secured Orkuveitan favorable access to capital for investments on better terms than otherwise. Note that Ljósleiðarinn’s operations fall outside the scope of the EU Taxonomy Regulation.
Driving Forward in Energy Production
Strengthening energy production is a priority for Orkuveitan, as stated in its newly approved overarching strategy from the beginning of the year. This plan includes increasing geothermal power generation in the Hengill area and harnessing wind power in nearby regions. Several hydropower options are also under consideration. In 2024, Orka náttúrunnar, along with Veitur and Orkuveitan, signed extensive contracts for drilling to secure both steam and hot water.
“A particular highlight in our energy procurement was the successful identification of new low-temperature geothermal areas in Southwest Iceland,” says Sævar Freyr. “Demand for district heating services has surged, equivalent to double the usage of the combined district heating utilities around Eyjafjörður. Keeping up with that level of growth is a major achievement.”
Expanding Carbon Capture with Carbfix Methods
Orkuveitan’s carbon capture capacity will nearly triple later this year with the commissioning of a new CO₂ capture facility at Orka náttúrunnar’s Hellisheiði Geothermal Power Plant in Ölfus. The company’s carbon footprint rose slightly in 2024 due to connecting the new facility, but the goal is to reach net-zero emissions from its operations by 2030.
“The Carbfix method is central to Orkuveitan’s climate objectives, delivering real and permanent solutions in the fight against climate change,” Sævar Freyr notes. “This approach has already generated substantial benefits—both environmentally and financially. We are proud to see municipalities demonstrate foresight and responsibility by expressing their willingness to facilitate carbon capture facilities in their jurisdictions. National authorities have approved our comprehensive environmental impact assessment for the Coda Terminal in Hafnarfjörður, and discussions with the local municipality are ongoing. At the same time, we have signed letters of intent with Ölfus and Norðurþing to begin preparations for our upcoming projects.”
Sævar Freyr emphasizes the urgent need for immediate climate action.
“We at Orkuveitan are committed to being a leading force—especially in enabling industries that struggle to reduce emissions to make progress on climate matters. This presents significant business opportunities for Icelandic enterprise and potential for foreign investment, strengthening the nation’s competitive standing overall.”
Strengthening Telecommunications Infrastructure and Increasing Security
Ljósleiðarinn has bolstered its position by merging the telecommunications assets acquired from Sýn with its systems. In the coming months, the key objectives are to further improve the company’s profitability and ensure robust telecommunications infrastructure. Considering shifting international circumstances, it is vital to safeguard the country’s infrastructure, where Ljósleiðarinn plays a critical role. Positive news regarding more favorable loan terms at the beginning of the year suggests strong prospects for improved operational results.
Positive Developments in Equality and Emphasis on Biodiversity
For the first time in years, women now comprise more than one-third of Orkuveitan’s total workforce—largely due to better gender balance among managers and specialists. Unexplained gender-based pay discrepancies have consistently remained within acceptable statistical limits since 2017.
The annual report features a new section devoted to biodiversity and the circular economy. Highlights include ecological restoration work in the Elliðaárdalur valley following the end of electricity generation there, and the ongoing development of Orka náttúrunnar’s Geothermal Park at Hellisheiði, where innovative start-ups benefit from clean energy.
A Bright Outlook
According to Sævar Freyr, Orkuveitan’s solid financial performance, expanding sustainable activities, and ambitious forward-looking plans pave the way for continued advancement:
“Orkuveitan will keep investing in infrastructure, supporting innovation, and driving a transition to renewable energy—always guided by the interests of society, the environment, and future generations.”
Among the innovation projects in energy and utility operations detailed in the Board of Directors’ report are ultra-deep drilling for superheated geothermal steam, blending high- and low-temperature water sources to make district heating in the capital area more cost-effective and eco-friendly, and service offerings based on increased use of data and artificial intelligence.
“We are convinced we are on the right path,” Sævar Freyr concludes. “Strong operational results and vigorous development open the door to more opportunities, whether in energy production, telecommunications, or other innovation projects.”
Contact:
Snorri Hafsteinn Þorkelsson
Chief Financial Officer
Snorri@orkuveitan.is
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