Good performance despite operational challenges

• Landsvirkjun‘s profit from core operations for the third quarter of the year amounted to USD 65 million and cash flow from operations USD 63 million.
• The company’s financial strength continues to increase the equity ratio is 62.4% and net debt to EBITDA ratio is 1.48×.
• Operating revenues decrease compared with the same period of the record year 2023, as energy sales declined, price indexing in a specific contract changed, and realized hedges decreased between years.

„The company continues to operate well, although not matching the record performance of 2023. Core operating profit in the third quarter amounted to 65 million US dollars, decreasing by 31%.

Conditions remained challenging in the third quarter. Reservoir water levels were historically poor after a dry and cold summer in the highlands and minimal glacier melt. Operating revenues decreased compared to the same period in 2023, in line with reduced energy sales, along with changes in price indexing in a contract with a major customer and a decrease in realized hedges.

Landsvirkjun's financial strength continues to grow. The equity ratio is now over 62% and in September the credit rating agency S&P confirmed the company's A- long-term rating with a stable outlook.“

Hörður Arnarson, CEO of Landsvirkjun