Key figures from the interim financial statement of Atorka Group hf.:
Consolidated Financial Statement:
• Atorka Group hf. recorded a consolidated after-tax loss of ISK 1,551 million
in Q2.
• The Group's consolidated after-tax loss for the first half of the year
totaled ISK 8,719 million and was due largely to the sharp weakening of ISK.
• Revenues for the first six months of the year totaled ISK 46 billion.
• The Group's total assets at the end of June were ISK 115 billion.
• Equity amounted to ISK 1.1 billion at the end of June.
Parent Company's Financial Statement:
• The after-tax loss for Q2 totalled ISK 2,055 million.
• The after-tax loss for the first six months of the year was ISK 3,924
million.
• Total assets at the end of June amounted to ISK 57 billion.
• Equity amounted to ISK 17.2 billion at the end of June.
• As of the end of June, the equity ratio was approximately 30.2%.
Magnús Jónsson, CEO of Atorka:
“Although the market value of our listed assets has declined, we are optimistic
about the company's investment portfolio for the medium and long term. I
believe that increased emphasis on renewable energy, water treatment and
environmental technology will deliver good returns going forward. During the
quarter, Atorka participated in broadening the shareholder group of Geysir
Green Energy, by adding two new partners. Atorka also participated in a share
capital increase to support further growth of Geysir. Other investment
projects are proceeding according to plan although the external environment is
challenging.”
Major Events
• Further strong development of Geysir Green Energy in USA, Germany, Iceland
and China.
• Geysir Green Energy's equity increased by over ISK 5 billion, partly due to
two new shareholders, Wolfensohn & Co. and Ólafur Jóhann Ólafsson. Atorka
is the company's largest shareholder, with a 40% stake.
• Geysir Green Energy increased its holding in Exorka and acquired the
remaining shares. Exorka is the largest owner of geothermal concessions in
Germany.
• Jardboranir(Iceland Drilling) continues its substantial growth in Iceland and
Germany. Jardboranir recently concluded a 13 billion ISK contract with
Reykjavik Energy, to drill up to 50 wells.
• Hekla Energy GmbH, a subsidiary of Jardboranir in Germany, is completing its
first borehole in a drilling project for Exorka in southern Germany.
• Promens' operating performance is in line with expectations, and the company
has maintained its margins, despite substantial increases in raw materials
prices, related to rising oil prices.
• Promens has made significant progress in implementing lean manufacturing and
best practices, which will improve the margins going forward.
• Promens recently received two awards for patented packaging design for
cosmetics manufacturers.
• Promens opened a new factory in Nitra, Slovakia, which will produce
components for the automotive industry.
• Romag has seen substantial growth in its bespoken Building-Integrated
Photovoltaic (BIPV) products. The company is increasing its production
lines from two to four by year-end. Around 80% of Romag's turnover is now
outside UK.
• All of Amiad's market areas have seen considerable growth in turnover. The
company is placing increased emphasis on expansion through organic and
external growth. Amiad recently acquired a company in Turkey, thus
strengthening its presence in a new market area.
• Asia Environment Holdings has concluded an agreement to build and operate six
wastewater treatment plants for Jiangsu province in China. The Chinese
authorities have decided to invest approximately USD 150 billion in order to
improve water quality in China. YTL Corporation in Malaysia became a
strategic shareholder by acquiring 12% stake in a private placement. YTL
owns and operates large water treatment plants in the United Kingdom and
Asia.
• Significant progress has been made in the development of Interbulk. Special
emphasis has been placed on the company's growth in Asia and Russia. New
experienced management teams have been recruited in these markets.
• The distribution division of NWF has undergone significant development. The
company has built a new warehouse that can accommodate 60,000 pallets.
This rapid development of the distribution division affected the last year's
operating performance, during the time when the company was filling its
warehouses.
• Atorka‘s results are reflected in the Parent Company Accounts but not in the
Consolidated Accounts. Key decisions are made related to the Parent Company
such as currency hedge to hedge the investments of the Parent Company from
fluctuating exchange rate. This now results as loss in the Consolidated
Accounts because of the weakening of ISK.
• The company's liquidity position remains strong. Cash and cash equivalents
and undrawn lines of credit totaled ISK 8 billion at the end of June 2008.
Future prospects
Atorka's prospects for its investment projects are good. Emphasis will continue
to be on supporting and expanding the investment projects in the company's
asset portfolio. Many of Atorka's investment projects are on growth markets,
such as in renewable energy, water treatment and environmental technology which
will grow fast due to global shifts. There are ongoing efforts
for the development of Geysir Green Energy, and Atorka sees great opportunities
for further value creation in that company. Promens will continue striving for
further growth with "buy and build" with emphasis on East Europe. Atorka's
strong financial position gives the company opportunities to support its
current investment projects as well as examine new opportunities spawned by the
current market conditions.
Further information can be obtained from:
Magnus Jonsson,
Chief Executive Officer, tel: +354 540 6200
Harpa Thorlaksdottir
Head of Corporate Communication, tel: +354 840 6212
Atorka Group's interim financial statements can be found on the Company's
website: www.atorka.com
