Stability in the results of Reykjavík Energy

28. nov 2023

Höfuðstöðvar OR að Bæjarhálsi 1 í Reykjavík.
© Atli Már Hafsteinsson

The profit from the operation of Reykjavík Energy (Orkuveita Reykjavíkur; OR) Group through Q3 2023 amounted to ISK 3.6 billion. The group includes, in addition to the parent company, Veitur Utilities, ON Power, Reykjavík Fibre Network, and Carbfix. Working capital from operations increased slightly compared to the same period in 2022, from ISK 19.5 billion to ISK 19.6 billion. Investments increased by ISK 2.5 billion year-on-year and amounted to ISK 17.6 billion in the first nine months of the current year.

Reitun's updated ESG rating of OR

Icelandic rating company Reitun has published an updated ESG rating of the Reykjavík Energy group. The assessment covers the sustainability of activities, i.e. environmental, social aspects, and governance.

"Orkuveita Reykjavík performs exceptionally well in Reitun's ESG assessment, just like in recent years," says the rating document attached. OR is rated A3 and is among several domestic issuers of financial instruments that have received a rating that falls into that category, but no issuer has gone higher than A3. According to the assessment, environmental issues are a particular strength of the group, where the companies receive 93 points out of a possible 100. OR's total score is 87 out of 100.

Uncertainty on the Reykjanes Peninsula

RFN is the only company within the OR group that owns and operates infrastructure in Grindavík, a municipality heavily affected by seismic events in the Reykjanes peninsula. Part of the town has been connected to RFN’s network. No direct damage to cables or other equipment is known.

Reykjavík Energy has, on behalf of the companies in the group, offered the assistance of their staff due to the earthquakes on the Reykjanes Peninsula. There, companies in energy and utility operations corresponding to those of Reykjavík Energy face a significant threat and considerable damage to systems. Reykjavík Energy’s Emergency Committee has met twice due to the danger, mainly to review response plans for a possible volcanic eruption. Ashfall can call for measures to protect the equipment of power plants and utilities. Such measures were taken when Eyjafjallajökull erupted in 2010.

Sævar Freyr Þráinsson, CEO

"Our thoughts have been with the inhabitants of Grindavík for the last few weeks and our colleagues in the Reykjanes area. The uncertainty there is profound, and how the essential services provided by the energy and utility companies can be guaranteed is of great importance in the future.

The events have shown us how vital the heating supply is to the energy security of the communities. The effects could go far beyond the danger zone due to potential volcanic events. When those of us who run socially essential activities in volcanic areas prepare to meet such events, we often rely on ready-made, fictional scenarios to respond to. Now, we have before our eyes how the threat can really materialise. It is, therefore, important that the knowledge that is being amassed sharpens our view of how it is wisest to be prepared for disasters. We are entrusted with energy and water sources essential for the communities we serve always to have access to.”

Changed presentation of realised aluminium hedges

The presentation of the income statement has been changed from the same period last year. Realised aluminium hedges are now included in the operating income but was previously included in financial income and expenses. It is the opinion of the company's management that the changed classification gives a clearer picture of the company's operating income. The group's interim financial statements, approved by Reykjavík Energy’s Board of Directors today, are prepared in accordance with the international accounting standard IAS 34 on interim financial statements.


Sævar Freyr Þráinsson
+ 354 5166100

OR Interim Financial Statements 30.9.2023
UFS-mat Reitunar á OR 2023