Reykjavík Energy | Financial statements Q2 2024 – Revenue Growth and Increased Profit

Reykjavík Energy's (RE; Orkuveita Reykjavíkur) revenue was significantly higher in the first half of the year compared to the same period in 2023. The increase amounts to 9.3%, and profit for the period nearly tripled from the previous year, reaching ISK 4.3 billion in the first six months of this year compared to ISK 1.6 billion last year. This is stated in RE's consolidated interim financial statements for the period January 1 through June 30, 2024, which were approved by the Board of Directors today. Within the group, along with the parent company, are Veitur Utilities, ON Power, Reykjavík Fibre Network, and Carbfix.

Cash flow from operations for the first six months amounted to ISK 14.6 billion, an increase of 4.6% year-on-year. Investments in fixed assets were ISK 13.7 billion. The group's assets are recorded at ISK 495 billion as of June 30, with an equity ratio of 52.4%.

In the Midst of Important Projects

Sævar Freyr Þráinsson, RE's, says the growth is pleasing: "Orkuveitan is a driving force for necessary transitions. We are in the midst of various climate projects, including increasing energy production to meet current demand and future needs and carbon sequestration both domestically and internationally. This calls for substantial investments in equipment and other gear but also in people's knowledge," says Sævar Freyr.

He points out that RE's total investments in the first half of the year amounted to nearly ISK 14 billion: "RE's strength is well utilized in these large sustainable societal projects; cash flow from operations in the first half-year amounted to ISK14.6bn,” adds Sævar Freyr.

Supporting Sustainable Growth

Sævar Freyr says that RE's new overall strategy aims at supporting sustainable growth: “We have clear examples of how we do this; for instance sales through ON Power's EV charging network have almost quadrupled over the last two years thus supporting energy transition in transportation,” says Sævar Freyr. “But we must also follow up on older initiatives,” he adds pointing out that hot water usage by Veitur Utilities' customers has increased by 11% compared to the first two quarters of year 2022.

Recognition for Sustainability Work

Reykjavík Energy has received good ratings this year for its sustainability efforts; Reitun's ESG-rating attached (only in Icelandic) grants the company 88 out of 100 possible points with environment and climate issues being the group's particular strength; Reitun assesses about 40 Icelandic issuers of financial instruments. This strength is also evident in the PwC Sustainability Index, which was recently published. Reykjavík Energy is considered among the country's leading companies in climate issues, with PwC evaluating the 50 largest companies in the country.

Contact: 
Snorri Hafsteinn Thorkelsson
CFO
[email protected]

Attachments

• Orkuveitan - UFS-mat Reitunar 2024
• Orkuveitan Condensed Consolidated Interim Financial Statements 1.1.-30.6.2024