Tuesday, February 28, 2017

Iceland: HS Orka Reports a Decrease in Sale of Geothermal Water Due to Unusually Warm Weather in 2016

HS Orka hf announces Consolidated Financial Statements for 2016

Consolidated Financial Statements for the year ended December 31, 2016 of HS Orka hf. were approved at a Board of Directors meeting on 27 February 2017.

Net profit for the year was ISK 3,104 million, up from a net loss of ISK 247 million in 2015, with the movement predominantly due to non-cash gains in the year. Operating revenue was ISK 7,099 million against 7,343 million in 2015, with the decrease primarily due to a reduction in aluminum based sales (as a result of a decline in aluminum prices in 2016) plus a decrease in the sale of geothermal water due to unusually warm weather in 2016.

Production cost increased by 13% to ISK 3,671 million in 2016 mostly because of an increase in power purchases and a rise in depreciation derived from the revaluation of the Svartsengi Power Plant at year-end 2015. 

Research and development costs were higher in 2016 due to the deep drilling program at Reykjanes.