Árborg reports 129 million króna loss for first half

The municipality of Árborg recorded a consolidated loss of 129 million krónur in the first half of 2026, with high inflation and rising financing costs weighing on its results, mbl.is reported.

The municipality’s financing expenses reached 1.16 billion krónur from January to June, nearly 300 million above budget. Its interim financial report says inflation remained substantially higher than forecast, while inflation adjustments and foreign exchange differences amounted to 922 million krónur.

Consolidated operating revenue was 10.8 billion krónur. The operating result before depreciation, financial items and taxes was positive by 1.54 billion krónur, and cash flow from operations was about 1.4 billion. The group had around 1.56 billion krónur in cash at the end of June.

Mayor Bragi Bjarnason said the municipality would continue to focus on efficiency and responsible financial management. He said the town council would face difficult decisions while preparing the 2027 budget, adding that the municipality did not want to return to the position it was in during 2022.