Strong cash flow financed investments
A strong performance of core operations in the last few years, despite a challenging business environment, has meant that net cash from operating activities has covered investments in recent years; a cash surplus beyond investment costs. The development of this trend is shown in the table below.
Free cash flow amounted to 211 million USD. The Company can use its free cash flow for new investments, which amounted to 156 million USD in 2016, for debt reduction (net debt decreased by 25 million USD this year) or for the payment of dividends to its owners (13 million USD was paid in 2016).
Decreasing debt whilst investing in new power stations
Landsvirkjun focused on decreasing debt in the last years. Cash flow has been strong in recent years, reducing Landsvirkjun’s net debt by 713 million USD (from year-end 2010 and including extensive investments). Net debt is interest bearing long‐term liabilities less cash and cash equivalents. The trends in net debt can be seen in the graph below.
You can download the Financial Statements for 2016 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. Alternatively, you can download the Annual Report in Acrobat (pdf).