Reykjavik, 2012-08-23 17:46 CEST (GLOBE NEWSWIRE) --
Orkuveita Reykjavikur´s (OR – Reykjavik Energy) interim financial statements
for Q2 2012 echo the positive results of Q1 2012. Operating results (EBIT)
amounted to ISK 8.1 billion. That is an ISK 1.8 billion improvement on the
comparative period 2011. This stems from curtailing in all aspects of OR’s
operations and increased revenues. Revenues increased by 16% between Q2 2011
and Q2 2012 while expenses increased by 6%. The results are in line with the
action plan between OR and its owners.

The development of ISK exchange rates and the price of aluminium in the first
half of 2012 continued to be unfavourable. Derived effects of these, and other
unrealised expenses and income on financial assets and liabilities, were
negative by ISK 8.5 billion and total results for the period therefore negative
by ISK 0.9 billion. The change in currency rates has been favourable between
accounting date and reporting date while the price of aluminium has declined.
These two factors, along with the changes in interest rates, are the main
uncertainties for OR. Accumulated positive effects of changes in currency rates
and aluminium price since accounting date amount to ISK eight billion, other
factors unchanged.

The interim financial statements of Orkuveita Reykjavikur for the first half of
2012 were approved by the Board of Directors today. The financial statements
are in accordance with International Financial Reporting Standards (IFRS).


Bjarni Bjarnason, CEO:

The thorough streamlining of OR´s operations shows in better results as
intended by the implementation of the Company’s action plan. Solid operations
have enabled us to renegotiate repayment dates, thus easing the burden of
servicing our debt. Newly made hedge contracts reduce the effect of
externalities beyond our control. Unfavourable development of these
uncertainties can hit the Company hard and we need to hedge up to a reasonable
point.

At this time, I especially welcome that the owners of Orkuveita Reykjavikur –
the municipalities of Reykjavik, Akranes and Borgarbyggd – have approved a new
owners’ policy for the Company. It is very much in line with what we have been
implementing within the Company – clear roles, clear objectives and clear
responsibility for these being reached.

Managers’ Overview
All amounts are in ISK million and on each year’s price level


Operations for the first half of 2008 2009 2010 2011 2012
the year
--------------------------------------------------------------------------------
Revenues 11,369 11,925 13,561 16,676 19,287
--------------------------------------------------------------------------------
Expenses (5,553) (6,233) (6,505) (6,164) (6,560)
--------------------------------------------------------------------------------
EBITDA 5,816 5,692 7,056 10,512 12,727
--------------------------------------------------------------------------------
Depreciation (3,308) (4,702) (3,902) (4,136) (4,585)
--------------------------------------------------------------------------------
EBIT 2,508 990 3,154 6,376 8,142
--------------------------------------------------------------------------------
Realised financial income and (2,157) (3,295) (1,218) (1,418) (1,629)
(expenses)
--------------------------------------------------------------------------------
Result before unrealised 351 (2,304) 1,936 4,957 6,513
financial income and (expenses)
--------------------------------------------------------------------------------
Unrealised financial income and (20,017) (10,805) 4,155 (9,741) (8,455)
(expenses)
--------------------------------------------------------------------------------
Result before income tax (19,666) (13,109) 6,092 (4,784) (1,941)
according to the interim
statements
--------------------------------------------------------------------------------
Income tax 3,260 2,494 (974) 962 1,017
--------------------------------------------------------------------------------
Result of the period (16,406) (10,615) 5,118 (3,822) (924)
--------------------------------------------------------------------------------





For further information:
Bjarni Bjarnason
CEO
+354 516 7707

Orkuveita Reykjavíkur - interim financial statements_30 6 2012.pdf