Stability in Operations and Increasing Investments
May 27 2024 - 10:43AM
Stability in Operations and Increasing Investments
Reykjavík Energy‘s consolidated interim financial statements Q1
2024 demonstrate stability in the company's operations and
increasing investments in line with the growing development of
housing and rising demand for green energy, and technology to
geologically store CO2. In addition to the parent company, the
Reykjavík Energy group includes Veitur Utilities, ON Power,
Reykjavík Fibre Network, and the innovation company Carbfix. The
financial statements from January 1 through March 31 were endorsed
by Reykjavík Energy‘s Board of Directors today.
Growth in Investments
The operational performance and profit margin of Reykjavík
Energy have been relatively stable in recent years despite
significant changes in external conditions. Active risk management
mitigates the effects of fluctuations in interest rates, inflation,
exchange rates, and aluminium prices. Consequently, the company's
investment capacity is substantial, and new steam pipelines are
being laid from Hverahlíð to Hellisheiði Power Plant, and smart
metering is being installed. Reykjavík Energy has also been
connecting new housing, which is rapidly developing, preparing to
lead in advanced climate solutions, and meeting the increased
demand for electrical and thermal energy in various ways.
Working capital from operations for the first three months of
the year amounted to ISK 8 billion, and investment in fixed assets
in the first quarter increased from ISK 4.9 billion last year to
ISK 6.3 billion.
Where There's a Will, We Find Ways
CEO Sævar Freyr Þráinsson states that Reykjavík Energy has set
ambitious goals to lead necessary transitions; energy shift and
carbon sequestration from polluting industries. "In both basic
services and development projects, we find the willingness of
people to participate in these changes. Reykjavík Energy‘s role in
society gives us the responsibility to lead changes and channel
this willingness. This applies equally to opportunities for
charging electric vehicles, enhancing public transportation,
educating people about improved energy efficiency, and further
developing carbon sequestration with Carbfix," says Sævar Freyr and
adds, "Reykjavík Energy‘s new overall strategy and strong financial
position strengthen the will for robust collaboration. Where
there's a will, we find more sustainable ways."