Landsnet maintains its strong position
Landsnet’s interim financial statement for the January-June, 2018 period was published today. The company’s performance is in line with expectations.
Guðlaug Sigurðardóttir CFO:
"It is satisfying to see that the interim financial statement shows positive results in operations and a strong equity ratio. The refinancing of the company, which began two years ago, is amongst other things, delivering these results. Construction costs will be somewhat lower than expected this year as delays in licensing will affect large-scale projects."
The refinancing of the company in the last few years has created a balanced operating environment and the currency risk has fallen considerably. This is a positive development as currency fluctuations have affected operations in recent years. An agreement was reached with the Nordic Investment Bank (NIB) who have now provided Landsnet with a long-term loan to finance construction, for various projects including the connection of a new power station to the industrial area Bakki, in the northeast of Iceland. Construction costs will be lower than expected this year and delays in the allocation of licences will subsequently affect large-scale projects. Main points of the financial statement:
- Earnings before Interest and Taxes (EBIT) was 29.2 million USD compared with 29.1 million USD in the previous year and the company’s daily operations are stable. Profits in the first 6 months of the year 2018 amounted to 16.2 million USD compared with 10.5 million USD during the same period in 2017.
- The total assets of the company amounted to 853.3 million USD compared with 851.3 million USD at year end, 2017. Total liabilities amounted to 503.3 million USD compared with 514.3 million USD at year end, 2017.
- Equity ratio was 41% at end of June, compared with 39.6% at year-end, 2017. Net assets amounted to 350 million USD compared with 337 million USD at year end in 2017.
- Liquid assets of the company are strong. Net cash availability was 47.8 million USD at year end and net cash provided by operating activities amounted to 36.9 million USD.
The interim report can be accessed here: www.landsnet.is
More information can be provided by Guðlaug Sigurðardóttir, CFO: Tel: +354 563 9311 or Email: gudlaugs@landsnet.is
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