Landsvirkjun does not build power stations, dams and other structures just for the sake of doing so. Our goal is to have a positive impact on the standard of living in Iceland by utilising individual energy resources in a responsible manner.
Our energy resources are not inexhaustible. We must utilise them in the most efficient manner possible, achieving maximum value from the resources that we have made the careful decision to use. In other words, we must increase the productivity of energy production.
Landsvirkjun is on the right track. The Company’s revenue has increased in recent years and the goal is to achieve a profit that is comparable to our sister companies in the Nordic countries. The financial results this year confirm that this is achievable as we have been successful, despite extremely challenging conditions, which can, amongst other things, be attributed to lower aluminium prices. The Company’s performance is still somewhat linked to aluminium prices but this connection will be significantly reduced in the coming years.
This operational development has been made possible by the improved utilisation of the power system and the re-negotiation of contracts, which have brought prices closer to the norm elsewhere. Electricity prices for energy intensive industry are no longer the lowest in Iceland which is a welcome development, but we must also remain competitive.
Increased profitability and an improved debt status could mean a significant increase in dividend payments within a few years. Plans have been made to establish a stability fund into which dividends would be paid and which could lay the foundation for prosperity, improving Iceland's future.