Balance Sheet
Landsvirkjun’s total assets amounted to USD 4,506 million at year-end 2017. Cash and cash equivalents at year- end 2017 amounted to USD 127 million. The increase in operating assets between years is mostly explained by the extensive investment in new power stations, where the Company has, for the first time, been building two new power stations concurrently.
Interest bearing liabilities amounted to USD 2,169 million at year- end 2017 and have increased by USD 64 million from year- end 2016. Landsvirkjun’s net debt amounted to USD 2,043 million at year- end and has increased by USD 83 million from year- end 2016 taking cash and cash equivalents into account. The increase in net debt and interest-bearing liabilities between years can mainly be explained by foreign exchange developments, where the US dollar weakened during the year against other main currencies.
Landsvirkjun has put great emphasis on decreasing debt in the last years. Net debt is interest bearing debt after deducting the Company’s cash and cash equivalent. The Company has invested extensively in recent years but in the year 2017 investments amounted to USD 254 million. The most prominent are the constructions of two power plants, Þeistareykir and Burfell II. The Company’s cash flow from operations amounted to around USD 278 million and thus sustained in full investments of the year. Despite this, net debt increased by around USD 82 million from the beginning of the year which can mainly be explained by weakening of the USD against other main currencies.
Key figures
The Group's leverage measured against operating profit before depreciation and amortisation (net debt / EBITDA) decreased from 6.5x at year- end 2016 to 5.9x at year- end 2017. The ratio of funds from operations (FFO) to net debt went from 12.0% at year- end 2016 to 13.8% at year- end 2017.
Interest coverage (EBITDA / net interest expense) increased to 5.5x compared to 5.1x at year- end 2016. The ratio of funds from operations (FFO) to interest expense increased from 3.8x at year- end 2016 to 4.3x at year- end 2017.
As return on equity is calculated on results, changes of embedded derivatives and unrealised foreign exchange differences can have a considerable effect on the results. Return on equity was positive by 3.5% in the year 2016 and positive by 5.5% in the year 2017.
Supporting documents
You can download the Financial Statements for 2017 in electronic form here. The documents contain the financial statements as a whole in Acrobat (pdf) document and the key figures in an Excel (xls) document.
