Income statement 2016
Operating revenues have been stable despite low aluminium prices in recent years. The emphasis in recent years has been to reduce aluminum's impact on revenues. New contracts and the re-negotiation of contracts with customers, at competitive energy prices, are unrelated to the price of aluminium. The renewed contract with Norðurál will take effect in 2019 and is linked to the Nordpool market price of electricity.
Sold volume decreased between years as some customers experienced operational difficulties and needed to reduce their purchases. Thus, sold volume was 450 GWh lower than contractual amounts. Due to contract obligations, it is difficult for Landsvirkjun to sell the energy to other customers. The power system is at maximum capacity and two power stations are under construction in order to meet the increasing demand for electricity.
With continued operational improvements and debt reduction the Company will have more opportunities to pay dividends to owners and refinance foreign debt for the long-term at favourable interest rates. Landsvirkjun has focused on reducing the effect of aluminium prices, interest rates and foreign exchange rates on the Company’s performance, the result will though continue to be based on the developments of these factors to some extent.
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).