Half year results

Improved reservoir levels and steady operations

Profit from Landsvirkjun’s core operations in the first half of the year amounted to USD 154.5 million, and cash from operations was USD 146.4 million.The company’s financial position remains strong, the equity ratio is 62.6% and leverage is 1.5× earnings before depreciation (EBITDA).Operating revenues increased during the period compared with the same time last year.

Hörður Arnarson, CEO:

Following a significant turnaround in Landsvirkjun’s reservoir levels, the Company’s electricity generation has returned to prior stability, with warm and wet weather conditions during the summer resulting in all major reservoirs reaching full capacity.

Operating revenues in the first half of the year rose by 8% and profit from core operations by just under 8%, totalling USD 154.5 million. The financial position remains strong, with an equity ratio of 62.6% at the end of the period. Return on equity increased year-on-year to 8%, compared to 7.3% during the same period in 2024.

Demand for Landsvirkjun’s renewable energy continues to exceed supply. One of the largest construction periods in the company’s history is now set to begin, assuming plans proceed as expected. Construction has commenced on the Vaðalda wind farm, and expansion work will soon begin on the Sigalda hydropower station, along with preparatory work for the Hvammur hydropower station. Hopes are high that a power plant license for Hvammur will be granted again shortly. The additional generation capacity from these projects is set to support societal growth and improved living standards in the coming years.

Attachments

Financial_Statement_HighlightsInterim financial statements Jan-June 2025