Landsvirkjun AGM 2011: Diverse industries, marine cable and green revenue

The Icelandic renewable energy company Landsvirkjun announced at its recent AGM that it is ready to seize opportunities in green electricity production in Iceland.

According to Mr. Hordur Arnarson, Landsvirkjun’s CEO, increased demand and rising energy prices globally are sparking the incremental sales increases of the renewable energy producer Landsvirkjun, and Iceland’s competitive environment for diverse power intensive industries is the company’s most significant strength.

The company strategy until 2025 is based on a robust power plant and industry build-up in Iceland, a possible physical connection to European high price electricity markets and potential revenues from the sale of green certificates within Europe. Mr. Arnarson also stated at the AGM that Landsvirkjun has great opportunities to capitalise on and expand its existing energy production through developing a variety of low-cost power production options, both in geothermal and hydro.

Some 360 people attended the AGM, which is a new record for Landsvirkjun – a company which finds itself ideally positioned for growth. The AGM showcased the opportunities ahead and also presented the company’s financial report for 2010.

Katrin Juliusdottir, Iceland’s Minister for Industry, opened the AGM; saying that as a public sector company, Landsvirkjun needs to do all it can to continue to be trusted by the public and that government must, in turn, make it as easy as possible for the company to expand with everyone’s interest at heart. She added that a clear new definition of Landsvirkjun’s precise role, goals, ownership and operational model is in preparation and will add to the company’s trust and transparency.

Rafnar Larusson, Director of Finance, told the AGM that 2010’s financial results were some of the best in the company’s history. The company’s foundations are solid and its revenue base is steady and reliable. Although the company is still indebted, Larusson said that interest charging debts were reduced in 2010 and the company’s USD 378 million operating revenue represented a ten percent increase on the year before. During 2010, several large electrical contracts were re-negotiated and this allowed the company to weaken the direct link between the price of its energy and the world aluminium price from seventy-six percent to fifty percent of its output. Furthermore, he said that despite the difficult economic climate, Landsvirkjun’s cash position is better than it has ever been before.

Image: Asgeir Eggertsson

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