Reykjavik Energy plans ISK 218.7 billion investment

Reykjavik Energy plans to invest ISK 218.7 billion in energy production and infrastructure from 2027 to 2031, according to mbl.is. The company’s board approved its financial forecast for 2027 and long-term projections for 2028–2031.

The forecast projects annual revenue will rise by ISK 22.2 billion, or 28.2%, between 2027 and 2031. EBITDA is expected to increase by ISK 17.1 billion, or 35.8%, while operating costs excluding depreciation are projected to grow by ISK 5.1 billion, or 16.5%.

The company expects its results to improve over the period, with a profit of ISK 16.4 billion forecast for 2031. Annual cash flow from operations is projected to increase from ISK 34.5 billion in 2027 to ISK 42.5 billion in 2031, a rise of 23.2%.

The forecast puts the company’s equity ratio at 50.1% in 2027 and 47.8% at the end of the period. It also projects dividend payments totalling ISK 35.1 billion, with the conditions for paying dividends expected to be met.

The forecast will be reviewed by Reykjavik City as part of the city group’s budget process. Separately, shareholders of Ljósleiðarinn, a subsidiary of Reykjavik Energy, approved authorising steps that could lead to a change in the company’s ownership. The authorisation is subject to approval by the owners and would be held by Reykjavik Energy’s chief executive, who represents its shareholding in Ljósleiðarinn.