Balance sheet
Landsvirkjun’s total assets amounted to USD 4,382 million at 2019 year-end and cash and cash equivalents amounted to USD 110 million. An extensive investment period has now come to an end which is reflected in decreasing operating assets between years.
Interest-bearing liabilities amounted to USD 1,802 million at year end 2019 and has decreased by USD 199 million from year end 2018. Equity has increased by USD 72 million during this period and the equity ratio is now 51% but was 48.6% at year-end 2018.
Landsvirkjun continues to place emphasis on systematically reducing debt with net debt decreasing by USD 193 million since the start of 2019 (net debt is interest bearing liabilities after deducting the Company’s cash and cash equivalents). An improved debt position is a key prerequisite for increasing dividend payments to the owner, the Icelandic nation.
Key ratios
The Company’s debt, measured against the operating profit before depreciation and amortisation (net debt/EBITDA), decreased from 4.8x at year end 2018 to 4.5x at year end 2019.
The ratio of funds from operations (FFO) to net debt went from 16.8% at year-end 2018 to 18.5% at year-end 2019. Interest coverage (EBITDA/net interest expenses) increased to 5.5x but was 4.8x at year end 2018. The ratio of funds from operations (FFO) to interest expenses increased from 3.7x at year end 2018 to 4.4x at year end 2019.
Return on equity is derived from profit where changes in the fair value of embedded- and other derivatives, along with foreign exchange fluctuations can have significant effects. Return on equity was 5.9% for 2018 and 5.2% for 2019.
Supporting documents
You can download the Financial Statements for 2019 in electronic form here. The documents contain the financial statements as a whole in Acrobat (pdf) document and the key figures in an Excel (xls) document.
