First quarter results
Good results despite challenging reservoir position
Landsvirkjun‘s profit from core operations amounted to 77.4 million USD for the first quarter of 2024 and cash flow from operations amounted to 101 million USD. Challenges in the company’s reservoir levels and the resulting curtailment had a slight impact on Landsvirkjun’s performance for the quarter. The company‘s financial position has never been better, with an equity ratio of 65.9% and a leverage ratio of 1.3x EBITDA.
Hörður Arnarson, CEO:
„Landsvirkjun‘s performance for the first quarter remained good, in spite of challenging circumstances. Following two exceptional operational years in the company’s history, the results remain strong.
Profit from core operations amounted to 77.4 million US dollars for the quarter, decreasing by nearly 29% from the same period last year. Cash flow from operations amounted to 101 million USD, decreasing by almost 30%. Both profit from core operations and cash flow from operations nevertheless held up compared to the first quarter of 2022, which was a record year.
Challenges in the company’s reservoir levels and the resulting curtailment had a slight impact on Landsvirkjun’s performance for the quarter. As a result, energy sales decreased by 6% from the same period last year. Average price to industrial customers also decreased compared to the same period last year. This decrease can largely be attributed to the fact that the pricing linked to the Nordpool market in a contract with one industrial customer expired at the end of last year. Operating revenues for the first quarter decreased by 18% compared to the same period in 2023.
Landsvirkjun’s financial position continues to improve. Net debt decreased by 95 million USD from year-end, and the equity ratio is currently higher than ever in the company’s history, at 65.9%.“
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