Landvirkjun lifts Q1 2019 profits

Icelandic state-owned power company Landsvirkjun recorded a net profit of USD 41.2 million (EUR 36.8m) in the first quarter of 2019, up from USD 9.1 million a year back.

Profit before unrealised financial items arrived at USD 50.5 million, down from USD 55.9 million.

Investiments during the first three months were down year-on-year following the recent completion of two projects, the Theistareykir geothermal plant and the Burfell II hydropower plants. Both are now operational. In addition to geothermal and hydro, the company also operates wind farms.

Earnings before interest, tax, depreciation, and amortisation (EBITDA) went down by 2.7% to USD 102.5 million.

Compared to the first quarter of 2018, operating revenues decreased by 5.7% to USD 133.2 million. Landsvirkjun noted that the first quarter of 2018 was the best performing quarter in the company’s history in terms of revenues. Quarter-on-quarter, operating revenues were down by 1.4%. Lower energy sales, weaker Icelandic krona and lower aluminium prices to which some of its electricity contracts are linked affected the first quarter top line.

Cash flow from operating activities increased by 3.7% year-on-year to USD 84 million.

(USD 1.0 = EUR 0.89)

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