Orkuveita Reykjavíkur


Reykjavik Energy’s operating results remain solid and stable

  • Consolidated Financial Statements 2020 approved today. 
  • Emergency loan from owners due to the economic crisis fully retired. 
  • Owners’ guarantees on loans significantly reduced – plans to end this type of borrowing. 
  • Stable dividends – ISK 4 billion proposed this year. 

Reykjavik Energy’s (Orkuveita Reykjavíkur; RE) finances and operations were solid for fiscal year 2020 with increased revenues, mainly due to increased sales of hot water. A cold season and increased number of connected housing led to an unparalleled 10% year-on-year increase in hot water sales. Investment was considerable, although less than expected. RE’s cash position is very strong. EBITDA and EBIT in 2020 increased from 2019, and the bottom-line result was ISK 5.6 billion, compared to ISK 6.9 billion for year 2019. 

Reykjavik Energy Group comprises, in addition to the parent company, Veitur Utilities, ON Power, Reykjavik Fibre Network, and the latest addition, Carbfix, an innovation company that provides solutions combatting the climate crisis. 

Reykjavik Energy Annual Report 2020 published today 

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

Link to the Annual Report

Bjarni Bjarnason, CEO 

Reykjavik Energy Group’s successful financial and cultural restructuring over the last decade allows us to throw our weight behind measures countering the effects the coronavirus has on economy and society. Operations are sound, results predictable, and in the last few years we have been able to considerably lower tariffs for water utilities and electricity distribution. Tariffs for district heating and wastewater have roughly been in line with inflation. 

It is important, now that the state and municipalities face economic downturn caused by the coronavirusthat owners’ guarantees on RE’s loans have been vastly reduced. Over the last decade, the proportion of loans with owners guarantee hadecreased from over 90% to 46%. Our goal is to end owners’ guaranteed borrowing. Furthermore, the emergency loan, issued to RE by its owners in 2011, in the amount of ISK 12 billion, has now been fully repaidRE’s tax footprint for 2020 has been calculated. It was ISK 8.8 billion. We are proud of operations contributing on such a scale to our society. 

Significant effect from the pandemic 

The COVID-19 pandemic affected RE’s operations and activities in various ways last year and still does. RE’s Board of Directors decided to utilise the Group’s financial strength to counterbalance the economic recession. Increased number of summer- and part-time jobs were created. Planned investment was increased. Countering the effects of the pandemic, a total of ISK 6 billion, is divided between years 2020 and 2021, and distributed over Veitur Utilities’ operating areas in the South-West. 

Operating expenses rose in line with inflation and increase in payroll, even though grappling with the coronavirus increased various costs. The essential nature of the basic services provided by RE’s subsidiaries, calls for more stringent disease prevention than dictated by official guidelines.  

Substantial capital investment in 2021 

Important preparations for various projects were hampered during 2020, in part due to the pandemic, and not all plans proceeded as scheduled. RE’s capital investment was ISK 16.8 billion versus ISK 19.4 billion in 2019. Plans are in place for increased investment for year 2021 in addition to conventional maintenance and renovation investment for power plants and utilities’ infrastructure. Substitution of approximately 160,000 meters for hot and cold water and electricity will commence, as smart metering is introduced in coming years. The refurbishment of a damaged portion of RE’s headquarters at Bæjarháls will soon be under way. 

Managers’ overview of financial and non-financial data 

  2015  2016  2017  2018  2019  2020  unit 
Revenues  40,312  41,423  43,666  45,916  46,570  48,627  ISK Million 
Expenses  (15,183)  (16,062)  (17,285)  (17,299)  (18,398)  (19,172)  ISK Million 
EBITDA  25,174  25,361  26,380  28,617  28,172  29,454  ISK Million 
EBIT  14,428  14,968  17,318  18,346  16,051  16,398  ISK Million 
Gender pay-gap  2.3%  2.1%  0.2%  0.0%  0.1%  0.0%  Percentage 
Employees’ happiness   4.3  4.4  4.4  4.4  4.3  4.4  Grade 0-5 
Hot water  83  78  94  101  101  110  Million m3 
Electricity generated  3,249  3,411  3,473  3,507  3,536  3,581  GWh 
Potable water  29  30  29  28  29  26  Million m3 
Data over fibre network  122,000  155,000  180,000  216,000  260,000  345,000  TB 
Carbon footprint*  67,100  45,450  42,700  45,450  48,750  50,550  tn, CO2-equiv, 
Eco-friendly vehicles  19%  34%  34%  39%  42%  48%  Percentage 

*The Group's carbon footprint increased in 2020 due to a borehole with a high CO2 concentration in steam was connected to the Hellisheidi Geothermal Power Plant. Plans are in place for sequestering all carbon-emissions from power plants. 


Breki Logason 
Communications specialist 
+354 698 5671 


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