Landsvirkjun’s largest profit since 2009

Landsvirkjun’s profit last year amounted to 148.6 million dollars, equivalent to 19.3 billion ISK. The company has not returned as much profit since 2009 when it amounted to almost 200 million dollars. Profits almost doubled between years, amounting to 78.6 million dollars in 2020.

Operating income amounted to 558.8 million dollars, equivalent to 72.6 billion ISK, and has never been higher in history. They increased by 105.3 million dollars or 23.3% from 2020.

“After uncertainty and difficulties in the company’s operating environment at the beginning of the viral epidemic in 2020, Landsvirkjun’s operations developed very positively in 2021,” says Hordur Arnarson, CEO of the company, in an announcement that accompanied its annual results.

“The improved performance can be attributed to a great improvement in the operating environment of our customers’ large users and Landsvirkjun itself.” It has been pointed out that commodity prices, including aluminum prices, have skyrocketed in recent months, compared to the beginning of the epidemic. This has resulted in greatly improved results for smelters in this country and, in fact, turned an impermeable loss-making operation into a profit. Landsvirkjun’s large contracts are linked to world market prices for aluminum, and therefore these disruptions appear in the company’s books.

Hordur also mentions that the total amount of electricity sold increased by 5% in 2021, compared to 2020. The electricity system in Iceland was fully loaded at the end of last year and there was great demand from a diverse group of customers.

Debts 195 billion

Landsvirkjun’s net debt amounted to USD 1,500.8 million at the end of last year, equivalent to ISK 195.1 billion. They decreased by 175 million dollars, equivalent to 22.8 billion ISK.

“The main debt ratios have now become comparable to those of our sister companies in the Nordic countries, which is an achievement we are proud of. The key measure net debt / EBITDA decreased significantly last year and net debt is now only about 3.5 times operating profit before depreciation. There is therefore no longer a need to emphasize the rapid reduction of debt and the company’s dividend-paying capacity has consequently increased, “says Hordur.

As a result, the company’s board has decided to propose to its owner, the Icelandic state, that a dividend of ISK 15 billion be paid for last year’s operations.

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