Landsnet hf. - Financial statements 2021 - Extensive investment in the transmission system is still needed

Financial statements 2021 - Extensive investment in the transmission system is still needed The financial statements for 2021 were approved by the Board of Directors on the 17th of February 2022. Main points of the financial statement:Earnings Before Interest and Taxes (EBIT) was 59.0 million USD compared with 46.6 million USD in the previous year. Profits were 35.6 million USD in 2021 compared with 27.3 million USD in 2020.Net cash availability was 25.2 million USD at...

Reykjavík, 17/02/2022 (informazione.news - comunicati stampa - energia)

The financial statements for 2021 were approved by the Board of Directors on the 17th of February 2022.

Guðlaug Sigurðardóttir CFO said that the Financial Statement shows that Landsnet is financially strong, stable, and efficiently managed its operations throughout the COVID pandemic. Extensive future investments will be needed to strengthen the transmission system, and the company must be well equipped to deal with the future.
"Landsnet is focused on stable and efficient operations. The success of this approach is reflected in the year's Financial Statement which shows that operations went according to plan. This is no small achievement considering the challenges associated with proceeding with major construction projects during an ongoing global pandemic. The transmission system is now fifty years old and has long since reached capacity limits. Krafla Line 3, connecting Krafla and Akureyri, became operational this year, marking a significant phase in constructing a new generation of transmission lines. Preparations are already underway for continued development in the North and West of Iceland. Strengthening the transmission system is a crucial part of the energy transition, and extensive investment will be needed in the coming years to make this a reality. Landsnet's financial strength, stable legal environment and efficient operations are key factors in gaining the trust of potential lenders. In 2021, Landsnet signed a loan agreement with the Nordic Investment Bank in the amount of USD 50 million and Landsbankinn also provided the company with finance. Landsnet is proud to say that its operations and construction projects align with green loan principles, which support sustainable infrastructure, tackling climate change. This approach creates a solid foundation for the financing of future projects.

Income Statement

Balance sheet

In accordance with the provisions of the International Accounting Standard, the Company's transmission lines and substations were revalued as at year-end 2021.  The revaluation amounted to 51 million USD.

The year 2021 was among the Company's biggest for infrastructure development to date, with works worth USD 89 million carried out during the year with overall construction costs in line with the year's plans. The largest projects of the year were the Krafla Line, which came operational in 2021 and the Hólasandur Line which is under construction and is expected to become operational in 2022.  Both lines run between Fljótsdalur and Akureyri. Other projects included a voltage increase in the East and a cable installation between Sauðárkrókur and Varmahlíð.

In June, Landsnet signed a USD 50 million loan with the Nordic Investment Bank to finance specific projects.

Dividends in the amount of 13.8 million USD were paid out in 2021 from profit in 2020.

Operating outlook

The company budget for 2022 predicts a 26.1 million USD profit from company operations. The revenue plan is based on the amount and price changes that the company was aware of when making the plan. Possible energy productions curtailments could affect the year´s revenue.  The cost estimate is based on the actual cost of the operation of the company, taking into account the criteria for determining the revenue cap. The company's plans for construction during the year amount to approximately 57.2 million USD. Financing for construction projects is underway and access to loan markets is good.

About the financial statement

The financial statements for 2021 were prepared in accordance with the International Financial Reporting Standards (IFRS). These financial statements are presented in USD, which is the company's functional currency. The financial statements were approved by the Board of Directors on the 17th of February 2022.

About Landsnet
Landsnet was established in 2005 and is responsible for operating Iceland's electricity transmission system, one of the most important parts of Iceland's infrastructure. Our role is to operate and develop Iceland's electricity transmission system and administer its system operations.
More information can be provided by Guðlaug Sigurðardóttir, CFO of Landsnet.

More information can be accessed on Landsnet's website:  www.landsnet.is   where the Financial Statement is also available.

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