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.
