Annual Report 2015


Good results in a challenging economic climate

The results for 2015 were good, despite the challenging market environment, with falling aluminium prices and uncertainty in the markets. Landsvirkjun enjoyed its most successful year of sales ever in 2015 and the Company's profit before unrealised financial items has increased by 45% since 2010. Net debt is lower than two billion US dollars which is a decrease of 107 billion since 2009.

More on the financial results


Operating revenue

USD 421m -3,8%


USD 322m -3,2%

Cash flow from operations

USD 249m -6,5%

Sold quantity

TWh 13,9 6,3%

Free cash flow

USD 235m 9,1%

Profit before unrealised items

USD 131m -11,1%

Net depts

USD 1.985m -9,4%

Shareholder´s equity

- 44,7% 4,8%

Natural Resources and Responsibility – CEO´s statement

“The opportunity to increase dividends will increase significantly with increased investment and lower debts.”

Hörður Arnarson, CEO


50 years – a valuable future

Landsvirkjun celebrated its anniversary year by looking back at the successes achieved in recent years. We also focused on the future and the many opportunities awaiting us.

The Minister of Finance and Economic Affairs, Bjarni Benediktsson, announced that it was time to establish an energy resource reserve, built on dividends from the utilisation of energy resources in Iceland. A documentary on the Búrfell Hydropower Station was also shown for the first time at the meeting.

More information on our team and the company

Two power stations under construction

Landsvirkjun’s energy generation capacity has seldom been better. Landsvirkjun generated 13.589 GWh of electrical energy for the Landsnet transmission grid in 2015, an increase of 7.1% when compared with figures for 2014.

The demand for energy is high and this year we placed an emphasis on improving the efficient utilisation of our power stations with the expansion of the Búrfell Hydropower Station and the continued development of a geothermal station at Þeistareykir.

More on energy generation and projects

Increased demand

Climate change is driving the worldwide demand for renewable energy. Landsvirkjun only generates renewable energy and the Company is enjoying increased interest from abroad as a result of the unique nature of this valuable commodity.

The Icelandic electricity market has shifted from that of a buyer’s market to a seller’s market in recent years. There is tremendous demand for the energy generated by Landsvirkjun from a diverse range of sectors. Two new clients are preparing for operations in Iceland.

More on Landsvirkjun’s clients

The interplay between nature and energy generation

Renewable energy and environmental protection do not have to be at odds with each other. Iceland’s unique position means that we can protect all of our most important natural habitats and substantially increase energy generation.

Landsvirkjun assessed twenty power projects in 2015. Each power project is preceded by many years of research and the projects are defined according to feasibility, sustainability and the minimisation of environmental impact. The Hvammur Hydropower Project was moved from the ‘under consideration’ category in the Master Plan for Hydro and Geothermal Energy Resources to the ‘appropriate for development’ category this year.

More on these projects