OR 2022 Consolidated Annual Financial Statements - Solid operations and finances

Reykjavík Energy Group’s (Orkuveita Reykjavíkur; OR) operations are on a solid course and operating results are good while assets are growing rapidly. At the same time tariffs for licensed services have fallen in real terms. The Group’s financial status, according to the 2022 Annual Financial statements, enables the company to support the necessary sustainable projects Icelandic society needs in the coming years.

In addition to the parent company, the Reykjavík Energy Group comprises Veitur Utilities, ON Power, Reykjavík Fibre Network, and Carbfix. Reykjavík Energy’s consolidated annual financial statements were approved by the Board of Directors with a profit of ISK 8,4 billion. The board proposes to the general meeting that a dividend of ISK 5.5 billion be paid. The owners of Reykjavík Energy are the City of Reykjavík, Akranes Township, and the Municipality of Borgarbyggð.

Weathers effects of inflation – so far
Inflation has a significant impact on OR Group’s operations, which are mostly denominated in ISK. It affects the operation when inflation increases dramatically after the period of low interest rates during the pandemic. Thus, expenses from interests and indexing of loans increased from ISK 8 billion in 2021 to ISK 13 billion last year. However, other factors beneficial to the operations made it possible to keep the increase in tariffs below inflation, which means a real term decrease for consumers. EBITDA ratio in 2022 was 62.7%, thus continually strong.

Reykjavík Energy 2022 Annual Report
Along with the annual financial statements, Reykjavík Energy publishes its integrated Annual Report for year 2022. The report provides a detailed account of the environmental aspects of the OR Group’s operations, social effects, and governance, as well as key financial metrics. The Group’s carbon footprint grew between the years 2021 and 2022, but will shrink significantly in the coming years with increased carbon capturing from ON Power’s geothermal power plants.
The annual report is audited by independent parties and signed by the CEO and the board. It can be retrieved at annualreport2022.or.is.

Also today, Reykjavík Energy publishes its Green Finance Impact Report 2022. It is audited by OR’s certified auditor, Grant Thornton, and defines the allocation of money OR has borrowed under the company's green financing framework.
Also, Reykjavík Energy publishes today its At the same time, the Impact Report of OR's green financing is published. It is signed by OR's certified auditors, Grant Thornton, and describes the use of the funds that OR has borrowed within the company's green financing framework.

Bjarni Bjarnason, CEO
It is good to retire from the company in a such a good and healthy state. Reykjavík Energy’s finances have never been stronger and valuably so. Ahead lie large and urgent projects. The fight against the climate crisis is critical, as is adaptation to the consequences of climate change. Reykjavík Energy’s goal of carbon neutrality is vital, and we must place the group’s weight on the scales of the circular economy. The leadership of the companies within the OR Group in energy shifts undisputed and will continue to have a significant impact on how the nation succeeds.
Over the past decade, there has been a gender equality revolution in the Icelandic energy and utility industry. I am proud of Reykjavík Energy’s role in these achievements, and I hope that the Group’s ambitious gender equality work will be an inspiration to the managers of other companies.

Overview of financial and non-financial figures
The table contains some significant sustainability aspects of Reykjavík Energy’s operations in recent years. A more detailed overview of these and other sustainability factors can be found in the integrated Reykjavík Energy Annual Report 2022.

	2015	2016	2017	2018	2019	2020	2021	2022	Unit
Operating revenues	40,312	41,423	43,666	45,916	46,570	48,627	51,890	56,965	ISK mill.
Operating expenses	-15,183	-16,062	-17,285	-17,299	-18,398	-19,172	-18,380	-21,220	ISK mill.
EBIT	14,428	14,968	17,318	18,346	16,051	16,398	20,253	21,306	ISK mill.
EBITDA	25,174	25,361	26,380	28,617	28,172	29,454	33,510	35,745	ISK mill.
EBITDA ratio	62.4%	61.2%	60.4%	62.3%	60.5%	60.6%	64.6%	62.7%	Ratio
Gender pay-gap	2.30%	2.10%	0.20%	0.00%	0.10%	0.00%	-0.20%	0.10%	Ratio
Job satisfaction	4.3	4.4	4.4	4.4	4.3	4.4	4.3	4.3	Grade 1-5
Hot water	83	78	94	101	101	110	106	108	mill.m3
Electricity	3,249	3,411	3,473	3,507	3,536	3,581	3,545	3,494	GWh
Potable water	29	30	29	28	29	26	26	27	mill.m3
Data via Ljósleiðarinn	122,000	155,000	180,000	216,000	260,000	345,000	396,000	443,000	TB
Carbon footprint	67,100	45,450	42,700	45,450	48,750	50,550	48,650	51,080	tn. CO2-eq.
Mineralized CO2	5,200	9,000	12,000	12,000	10,500	11,700	13,300	12,100	tonnes

Attached are:

• OR Consolidated Financial Statements 2022 on pdf-format.
• OR Green Finance Impact Report 2022
• Zip-file containing OR Consolidated Financial Statements 2022 on ESEF-format.
• XHTML-viewer file.

Contact:
Bjarni Bjarnason
CEO
+ 354 516 6100

Attachments

• OR - Consolidated Financial Statements 2022
• Reykjavík Energy Green Finance Impact Report 2022 - Audited (1)
• 5493004ARP9VPUIX5B73-2022-12-31-is.zip-viewer
• 5493004ARP9VPUIX5B73-2022-12-31-is

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