Minister says Landsvirkjun chief leaves company stronger after 17 years

Environment, Energy and Climate Minister Jóhann Páll Jóhannsson says Hörður Arnarson is leaving energy company Landsvirkjun financially stronger than ever after 17 years as its chief executive, mbl.is reports.

In a Facebook post marking Arnarson’s departure, Jóhannsson said he took over the company in 2009, during the economic crisis, when it was heavily indebted, all its loans were guaranteed by the state and its dividend payments were small.

Jóhannsson said Arnarson aimed to secure a fair price for the country’s energy, leading to difficult negotiations with some of Landsvirkjun’s largest customers. He said large energy users now pay prices comparable with those in Iceland’s neighbouring countries.

The minister said the company had repaid nearly two billion US dollars in debt. Its last state-guaranteed loan was paid off this summer, ending a 60-year history of such loans. Landsvirkjun also paid about 110 billion Icelandic krónur in dividends to the state for the 2021 to 2025 operating years, as well as tens of billions in taxes, he said.

Projects undertaken during Arnarson’s tenure included Búðarháls, Þeistareykir and Búrfell II power stations. Construction has begun at Hvammsvirkjun, and further expansions are being prepared.

Jóhannsson also credited Arnarson with helping Landsvirkjun take the initiative on environmental and climate issues. He said the outgoing chief had faced criticism for standing by his convictions and representing the company’s owners, whom he described as all the people of the country.

Arnarson is leaving a company that is more modern and rests on a more diverse foundation than before, the minister said.