Landsvirkjun‘s Financial Statements 2024
Solid operations in challenging conditions
• Landsvirkjun‘s profit from core operations amounted to USD 301 million last year.
• The company’s financial position is stronger than ever, the equity ratio is 66.2% and net debt is 1.6x EBITDA.
• The Board intends to propose a dividend to the state amounting to USD 180 million this year.
• The cumulative dividend for the fiscal years from 2021 to 2024 amounts to USD 660 million.
Hörður Arnarson, CEO:
„Landsvirkjun continued to perform well in 2024, although the operating results did not match the record year of 2023. Conditions were challenging throughout the year, with historically poor water conditions, leading to a decrease in power sales and hence a reduction in revenue. Furthermore, changes were made to price indexing in an agreement with an industrial customer, and realised hedges decreased compared to the previous year. The results were therefore very acceptable given the circumstances. The Company’s financial position has never been stronger, as well as its capacity to invest in the energy development necessary to meet the needs of Icelandic society.
In 2024, construction finally began on the 120 MW Búrfellslundur wind farm and the 95 MW Hvammsvirkjun hydropower projects, following repeated delays in the permit process. These new projects address the urgent need for additional electricity capacity to support the growth of society and the energy transition ahead. It is crucial that there are no further delays in the progress of these projects. In 2025, we also plan to commence construction on the expansions of the Theistareykir geothermal and Sigalda hydroelectric power plants. Never before has the company undertaken four new projects simultaneously to utilise three different energy sources.
Landsvirkjun’s infrastructure was put to the test under the challenging conditions of last year, due to high demand and historically low inflows into reservoirs. The strain on employees, as well as the systems and procedures developed within the company, was significant. It was very gratifying to see how well we managed to tackle these demanding circumstances and meet all of the Company’s commitments.”
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