Landsnet's interim financial statement for the period January-June 2024 - Operations proceed as planned despite various challenges

Landsnet's interim financial statement for the period January-June, 2024 was published today. 

Operations proceed as planned despite various challenges

Guðlaug Sigurðardóttir, Landsnet's CFO, stated that operations are performing well and aligned with established plans despite ongoing challenges.

“ Company operations in the first half of the year were generally successful, with overall results aligning with expectations. While an increase in income was anticipated compared to the previous year, curtailments caused by an energy shortage resulted in lower income during this period. Additionally, projects related to volcanic activity in Reykjanes have impacted the prioritisation of operation projects, leading to delays in several planned maintenance projects. 

There remains a significant need to develop and enhance the transmission system, with substantial investment projects on the horizon. The year began slowly, but the next few months will be spent preparing for larger purchases related to new projects. However, challenges persist in the supply chain regarding delivery times, rising prices and product availability. Additionally, intense competition for supplies related to transmission systems is emerging globally as Transmission System Operators upgrade their infrastructure to support the energy transition that demand considerable investments.

In the first half of the year, Landsnet secured a $50 million (7 billion ISK) loan from the Nordic Investment Bank (NIB), which supports projects focused on developing environmentally friendly infrastructure. Landsnet's commitment to strengthening its transmission system, optimising resource use, and enhancing energy security aligns with NIB's mission. This time, the loan will finance the construction of substations, including Landsnet's inaugural substation, where equipment is insulated with green gas, a more sustainable alternative than previously available. The enduring collaboration between Landsnet and NIB has been fruitful, and this loan further underscores the bank's confidence in Landsnet and its priorities“

Main points of the financial statement:

Profits in the first 6 months of the year 2024 amounted to 21.1 million USD compared with 14.9 million USD during the same period in 2023. Earnings before Interest and Taxes (EBIT) was 34.9 million USD compared with 29.9 million USD in the previous year. 

The total assets of the company amounted to 1.151,1 million USD compared with 1.113,6 million USD at year end, 2023.  Total liabilities amounted to 635,8 million USD compared with 606,1 million USD at year end, 2023.

Equity ratio was 44.8% at end of June, compared with 44.3% at year-end, 2023. Net assets amounted to 515.3 million USD compared with 507,5 million USD at year end in 2023.

Net cash availability was 78.6 million USD at end of June and net cash provided by operating activities amounted to 45.1 million USD.

The interim report can be accessed here: www.landsnet.is

More information can be provided by Guðlaug Sigurðardóttir, CFO: Tel: +354 563 9300 or Email: [email protected]

About Landsnet

Landsnet was established in 2005 and is responsible for operating Iceland's electricity transmission system, one of the most important parts of Iceland's infrastructure. Our role is to operate and develop Iceland's electricity transmission system and administer its system operations.

Attachments

• Landsnet Interim Financial Statement 300624
• Announcement Landsnet - Interim Financial Report 300624