Solid business in a challenging environment

Landsvirkjun’s profit from core business in the first half of the year was USD 143.4 million and cash flow from operations was USD 163.4 million.

Net debt continues to decline, the equity ratio is 62.2% and the leverage ratio is 1.44 times EBITDA.

Difficult reservoir conditions and the resulting energy restrictions impacted the financial position in the first half of the year.

Hördur Arnarson, CEO:

“Landsvirkjun’s operations were successful in the second quarter of the year under somewhat challenging conditions. After two outstanding years of business, which were exceptional in the company’s history, financial performance remains strong. Core operating profit for the first half of the year was $143.4 million, down 27%. Operating income was $279.1 million compared to $331.8 million in the same period last year.

The tense situation in the water industry had an operational impact in the first half of the year, made capacity cuts unavoidable and led to a loss of revenue in electricity sales. In addition, the expiration of the price link to the Nordpool market in a contract with an electricity-intensive customer led to a loss of revenue, as did a decline in realized hedges from the previous year.”

• Interim financial statements Jan.-June 2024

• Highlights of the financial statements