Alterra Power Corp. of Vancouver, Canada has announced that its 66.6% owned Icelandic subsidiary, HS Orka hf, yesterday released audited financial and operating results for the twelve month period ended December 31, 2014.
HS Orka is the largest privately owned energy company in Iceland, producing 7% of the country's power needs and 11% of the country's heating needs. Installed geothermal power capacity is 174 MW from the Svartsengi and Reykjanes power plants. In addition, HS Orka generates 150 MW of thermal energy for district heating.
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| Reykjanes power plant (Courtesy HS Orka) |
- Revenue increased 11% to $64.1 million (2013: $57.7 million) due to an increase in retail sales coupled with a strengthening ISK during the year.
- HS Orka generated $23.5 million of EBITDA and $15.9 million of gross profit in 2014 (an increase of 10% and 13% respectively from 2013), reflecting increased revenue discussed above and a decrease in plant operating and transmission costs partially offset by higher power purchases during the year. Other operating costs increased in 2014 primarily due to the cost of legal proceedings and the cost of preparing for the arbitration hearings connected to the power sales contract with Norðurál Helguvík. The hearings are expected to take place in spring 2016.
- As part of the ongoing field maintenance program at the Reykjanes field, HS Orka has completed the drilling of a new large diameter reinjection well and commenced drilling of a second well in 2014. A pipeline to carry fluid to the wells is being built and reinjection is expected to commence in early 2015.