Condensed Interim Financial Statements for the six months ended 30 June 2014 of HS Orka hf. were approved at a Board of Directors' meeting on 12th of August 2014. The Financial Statements of HS Orka hf. are prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union and are in ISK. The Financial Statement can be found on the company's website http://www.hsorka.is
Main Matters:
·Operating revenue for the period 1 January - 30 June 2014 was ISK 3,582 million compared to ISK 3,590 million for the same period in 2013. Profit for the period amounted to ISK 740 million, with the comparable number for 2013 being a loss of ISK 1,415 million. Total comprehensive profit amounted to ISK 715 million compared to a comprehensive loss of ISK 1,480 million in the first six months of 2013.
·Net finance income and cost have a material impact on the result now as often before. Changes in the value of the embedded derivative in power purchase agreements (linked to aluminum price) was negative for the period of ISK 242 million in the first six months of 2014, compared to a negative change of ISK 3,950 million in the same period in 2013. This was mostly offset by a currency gain of ISK 221 million, versus a foreign exchange gain of ISK 1,126 million in the first half of 2013.
·Equity ratio is strong or 59,7% but was 58,0% at year end 2013.
·Company operations are going well and the company's EBITDA remained strong at ISK 1,343 million in the first half of 2014, which is a 4% increase compared to the same period 2013 where the EBITDA was ISK 1,294. Revenue was ISK 3,582 million for the period compared to ISK 3,590 million for 2013 which is a reduction of ISK 8 million. Operating cost decreased 1% or ISK 31 million between the periods. The reduction in revenue is mainly due to a decrease in aluminum prices, but increased sales to the retail market offsets this reduction. On the cost side, operational cost of the power plants and transmission cost are going down, but there was a increase in power purchases. Other operating cost are also lower than in the same period of 2013, predominantly due to the cost of arbitration hearings connected to power sales contract to Norðurál Grundartangi that took place in the first half of 2013.
Further information is provided by Ásgeir Margeirsson, Managing Director of HS Orka hf., tel. 520 9300 / 855 9301
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