Interesting changes have occurred in recent years in the business environment of electricity companies in Iceland. There is now a diverse demand for electricity in Iceland. Industries like silicon metal plants and data centers, which have been sought after for a long time to come to Iceland, are now planning increased operations in Iceland. Demand for electricity is now higher than the supply which creates both opportunities and challenges.
Landsvirkjun's results will for the most part continue to be subject to development in aluminium prices, interest rates and foreign exchange rates. Landsvirkjun's income is partly linked to aluminium prices and changes in world market aluminium prices will therefore continue to have an effect on Landsvirkjun's future income. Currently, the price of aluminium is low and significant uncertainty prevails over its development during the coming months.
The majority of the Company’s liabilities carry floating interest rates and thus a continuing low level of interest rates is essential for the operations.