Assets
Landsvirkjun’s total assets amounted to USD 4,270 million at year end 2014. Cash flow at year end 2014 amounted to USD 207 million. The Company has access to revolving credit facilities where the undrawn amount is USD 200 million. Unrestrictive cash and undrawn credit facilities therefore amount to a total of USD 407 million.
Liabilities and Equity
Net debt at year end 2014 amounted to USD 2,190 million and decreased by USD 239 million from year end 2013. Taking investing activities into account, cash flow from operating activities amounted to USD 146 million which accounts for the decrease of net debt. Furthermore, currency exchange difference due to liabilities in other currencies than USD has an effect. The Company’s equity increased during the year and was USD 1,705 million at year end. The equity ratio also increased and was 39.9% at year-end 2014 compared to 36.3% at year-end 2013.
Net debt at year end 2014 amounted to USD 2,190 million and have decreased by USD 239 million from year end 2013. Taking investing activities into account, cash and cash equivalents amounted to USD 146 million which accounts for the decrease of net debt. Furthermore, currency exchange difference due to liabilities in other currencies than USD has an effect.
The Company’s equity increased during the year and was USD 1,705 million at year end. The equity ratio also increased and was 39.9% at year end 2014 compared to 36.3% at year end 2013.
Key figures
The leverage of Landsvirkjun continues to be relatively high, but the Company has for the last few years systematically worked on reducing debt and improving key metrics which affect the Company’s credit rating.
The Group's leverage measured against operating revenues before depreciation and amortization (net debt / EBITDA) decreased from 7.38x at year end 2013 to 6.59x at year end 2014. Ratio of funds from operations (FFO) to net debt increased from 10.6% at year-end 2013 to 11.8% at year-end 2014.
Interest coverage (EBITDA / net interest expenses) increased to 3.8x compared to 3.5x at year end 2013. The ratio of funds from operations (FFO) to interest expenses increased from 2.7x at year end 2013 to 2.8x at year end 2014.
As return on equity is calculated on net profit (loss), embedded derivatives and unrealised foreign exchange difference can have considerable effects on the results. Return on equity was negative by 2.3% in the year 2013 but positive by 4.7% in the year 2014.
Appendix
Here you can download Landsvirkjun’s financial statements for the year 2014. This includes Landsvirkjun’s entire Financial Statement in Acrobat (pdf) and key figures in Excel (xls).
