• 2020 Consolidated Financial Statements approved today.

• Owners emergency loan due to economic crisis fully retired.

• Landlord guarantees on loans drastically reduced – plans to end this type of borrowing.

• Stable dividends – 4 billion ISK on offer this year.

Finances and operations of Reykjavik Energy (Orkuveita Reykjavíkur; RE) were strong for the 2020 financial year with an increase in revenues, mainly due to increased hot water sales. A cold season and the increase in the number of connected homes led to an unprecedented 10% increase in hot water sales year-on-year. Investments have been considerable, although below expectations. RE’s cash position is very strong. EBITDA and EBIT in 2020 increased compared to 2019, and net income was ISK 5.6 billion, compared to ISK 6.9 billion for the year 2019.

Reykjavik Energy Group includes, besides the parent company, Veitur Utilities, ON Power, Reykjavik Fiber Network and the latest, Carbfix, an innovation company that provides solutions to fight the climate crisis.

Renergy eykjavík Annual Report 2020 published today

Reykjavik Energy’s 2020 Annual Report is also released today. It is an integrated report, filed in accordance with international corporate social responsibility standards. It provides a complete description of the environmental aspects of the Group’s activities, of its social impact and describes the governance with which the consolidation complies.

Link to the annual report.

Bjarni Bjarnason, CEO

The financial and cultural success of Reykjavik Energy Groupstructuring over the past decade allows us to put all of our weight into the measures to counter the affects the coronaviruss at to economy and company. The operations are ring, predictable results and in recent years we have been able to considerably inferior rates for Water services and electricity Distribution. Tariffs for district heating and sewage has nearly summer in agreement with inflation.

Iit is Iimportant, now this the state and municipalities economic face slow-down caused by the coronaviruss, youhat the owners’ guarantees on Dthe loans have summer Verry much reduced. On youhe the last decade, the share of loans to homeowners‘ guarantee Has decreases from on 90% to 46%. Our goal is to to finish owners guaranteed loan. Moreover, tIsleemergency loan, Posted at D by its the owners in 2011, amounting to 12 billion ISK, at now been fully Dpaid. D youchopped footprint for 2020 has been calculated. Iit was 8.8 billion ISK. We are proud of operations contributeing on such a scale at our company.

Important pandemic effect

The COVID-19 pandemic has affected RE’s operations and activities in various ways over the past year and continues to do so. RE’s board decided to use the group’s financial strength to offset the economic downturn. An increased number of summer and part-time jobs have been created. Planned investments have been increased. To counter the effects of the pandemic, a total of ISK 6 billion is spread between the years 2020 and 2021 and spread over the operating areas of Veitur Utilities in the southwest.

Operating expenses rose in line with inflation and rising payrolls, even as the fight against the coronavirus increased various costs. The essential nature of the basic services provided by RE affiliates calls for stricter disease prevention than that dictated by official guidelines.

Substantial Capital city investment in 2021

Important preparations for various projects were hampered in 2020, in part due to the pandemic, and not all plans went as planned. RE’s capital investment was ISK 16.8 billion compared to ISK 19.4 billion in 2019. Plans are in place to increase investments for the year 2021 in addition to conventional maintenance and repair investments. renovation of power plants and utility infrastructure. The substitution of approximately 160,000 hot and cold water and electricity meters will begin, as smart meters are introduced in the coming years. The renovation of a damaged part of the RE headquarters in Bæjarháls will soon be underway.

Overview of managers on financial and non-financial aspects Data

_{*The Group’s carbon footprint increased in 2020 due to the connection of a borehole with a high concentration of CO2 in steam at the Hellisheidi geothermal power plant. Plans are in place to sequester all carbon emissions from power plants.}

Breki Logason
Communication specialist
+354 698 5671

• Reykjavik Energy – Consolidated Financial Statements 2020.pdf