Core Insights - Reykjavík Energy's consolidated profit for the first nine months of 2025 reached ISK 6.7 billion, a 31% increase from ISK 5.1 billion in the same period of 2024 [1] - Operating revenues rose by 3.9% year-on-year, while operating expenses increased by 2.0% [1] - Cash flow from operations amounted to ISK 22.1 billion, reflecting a 6.9% increase compared to the previous year [3] Financial Performance - Revenues for the first nine months of 2025 were ISK 49,984 million, up from ISK 48,277 million in 2024 [4] - Operating expenses were ISK 20,960 million, compared to ISK 20,549 million in the previous year [4] - EBITDA for 2025 was ISK 29,024 million, an increase from ISK 27,728 million in 2024 [4] - EBIT for the same period was ISK 16,207 million, up from ISK 15,233 million in 2024 [4] Cash and Liquid Assets - Total liquid funds as of September 30, 2025, were ISK 56,002 million, significantly higher than ISK 33,052 million in 2024 [4] - Cash and cash equivalents stood at ISK 10,517 million, compared to ISK 9,743 million in the previous year [4] - Undrawn credit lines increased to ISK 29,385 million from ISK 13,080 million in 2024 [4] Revised Financial Forecast - The financial forecast was amended due to Norðurál, the largest customer, indicating a payment default due to equipment failures [5] - The forecast includes a reduction of ISK 1 billion in operating profit compared to previous estimates [9] - A reduction of ISK 2 billion in operating costs and ISK 6 billion in investments is expected for 2026 [9] - Dividend payments are projected to decrease by ISK 2 billion in 2026 [9]

Core Viewpoint - Reykjavík Energy is conducting a bond auction on November 6, 2025, offering three classes of green bonds with varying interest rates and maturity dates [1][2][3]. Group 1: Bond Classes - The OR031033 GB bond class has a fixed nominal interest rate of 8.30% and pays equal installments every six months, maturing on October 3, 2033. Previously issued bonds in this class totaled ISK 11,265 million [1]. - The OR180242 GB bond class features a fixed nominal interest rate of 4.50%, with equal payments every six months and a final maturity date of February 18, 2042. Previously issued bonds in this class amounted to ISK 11,058 million [2]. - The OR180255 GB bond class offers fixed indexed interest, with equal payments every six months and maturing on February 18, 2055. Previously issued bonds in this class totaled ISK 39,771 million [3]. Group 2: Auction Details - Bids for the bonds must be submitted via email before UTC 17:00 on November 6, 2025, with transactions to be settled on November 13, 2025 [4]. - Fossar Investment Bank hf. is responsible for overseeing the issuance, sale, and admission of the bonds to trading on the Nasdaq sustainable bonds market in Iceland [3].

Core Points - Reykjavík Energy is conducting a bond auction on October 8, 2025, offering three classes of green bonds [1] - The bonds include OR031033 GB with an 8.30% fixed nominal interest, maturing on October 3, 2033, and previously issued bonds worth ISK 9,950 million [1] - OR0280845 GB carries a 3.70% fixed interest, redeemable in 2037, with a final maturity date of August 28, 2045, and previously issued bonds worth ISK 9,000 million [2] - OR180255 GB has fixed indexed interest, maturing on February 18, 2055, with previously issued bonds worth ISK 39,421 million [3] - Bids must be a minimum of ISK 20,000,000, and the auction is exempt from the obligation to publish a prospectus [4] - Fossar Investment Bank hf. is overseeing the bond issuance and trading on the Nasdaq sustainable bonds market in Iceland [5] - Bids must be submitted by email before UTC 17:00 on October 8, 2025, with transactions settling on October 15, 2025 [6]

Investment Forecast - Total investments for Reykjavík Energy Group are projected to reach ISK 245 billion from 2026 to 2030, averaging nearly ISK 50 billion annually [1] - The financial forecast includes an outlook for the current year and has been approved by the Board of Directors [4] Competitiveness and Sustainability - Reykjavík Energy aims to enhance Iceland's competitiveness by generating more energy and connecting more homes to environmentally friendly utility systems [2] - The company has received an "outstanding" sustainability rating of A3 from Reitun, reflecting its strong performance in environmental, social, and governance factors [5] Financial Growth Projections - Annual revenues are expected to increase from ISK 70.9 billion in 2025 to ISK 96.0 billion in 2030, a growth of 35% [6] - Annual operating expenses are projected to rise from ISK 30.9 billion to ISK 35.6 billion, an increase of 15% [6] - Cash flow from operations is anticipated to grow from ISK 32.2 billion in 2025 to ISK 42.1 billion in 2030, marking a 31% increase [6] - Equity is expected to rise from ISK 262 billion at the end of 2024 to ISK 341 billion by the end of 2030, reflecting a 30% increase [6] Emerging Opportunities - There is a growing interest from parties looking to establish industries in Iceland due to the availability of green energy and carbon storage options [3] - The company hopes that the government's upcoming industrial policy will support the development of green industrial parks, enhancing the sustainability of Icelandic industry [3]

Core Insights - Significant investments are projected for the Reykjavík Energy Group, totaling ISK 245 billion from 2026 to 2030, averaging nearly ISK 50 billion annually [1] - The CEO emphasizes the goal of enhancing Iceland's competitiveness by generating more energy and improving utility systems, while also addressing climate change resilience [2] - New industrial opportunities are emerging due to Iceland's green energy and carbon storage capabilities, with hopes for supportive government policies [3] Financial Forecast - Annual revenues are expected to rise from ISK 70.9 billion in 2025 to ISK 96.0 billion in 2030, marking a 35% increase [7] - Annual operating expenses are projected to increase from ISK 30.9 billion to ISK 35.6 billion, a 15% rise [7] - Cash flow from operations is anticipated to grow from ISK 32.2 billion in 2025 to ISK 42.1 billion in 2029, reflecting a 31% increase [7] - Equity is forecasted to increase from ISK 262 billion at the end of 2024 to ISK 341 billion by the end of 2029, a 30% growth [7] Sustainability and ESG Performance - Reykjavík Energy received an "outstanding" sustainability rating of A3 from Reitun, indicating strong performance in environmental, social, and governance factors [5] - The company’s sustainable practices enhance its financing conditions, particularly as an issuer of green bonds [5]

Core Points - Reykjavík Energy is conducting a bond auction on October 8, 2025, offering three classes of green bonds [1][2][3] - The bonds include OR031033 GB with an 8.30% fixed nominal interest, maturing on October 3, 2033 [1] - OR0280845 GB carries a 3.70% fixed interest, redeemable in 2037, with a final maturity date of August 28, 2045 [2] - OR180255 GB has fixed indexed interest, maturing on February 18, 2055, with previously issued bonds totaling ISK 39,421 million [3] - Fossar Investment Bank hf. is responsible for overseeing the issuance and trading of these bonds on Nasdaq Iceland [3] Bond Details - OR031033 GB: 8.30% fixed nominal interest, equal payments every six months, ISK 9,950 million previously issued [1] - OR0280845 GB: 3.70% fixed interest, equal payments every six months, ISK 9,000 million previously issued [2] - OR180255 GB: Fixed indexed interest, equal payments every six months, ISK 39,421 million previously issued [3] Auction Information - Bids must be submitted by October 8, 2025, before UTC 17:00 [4] - Transactions will be settled on October 15, 2025 [4] - Contact information for CFO Snorri Hafsteinn Þorkelsson and Matei Manolescu from Fossar Investment Bank is provided for inquiries [4]

Core Insights - Reykjavík Energy reported a profit of ISK 4.9 billion in the first half of the year, an increase from ISK 4.3 billion in the same period last year [1][2] - Operating expenses rose by ISK 340 million, while operating revenues increased by ISK 973 million, despite a decline in revenues in Q2 [2] - Significant investments totaling ISK 12.9 billion were made in infrastructure, focusing on utility system maintenance and development [3] Financial Performance - Cash flow from operations increased to ISK 15.9 billion in the first half of the year, aiding in funding investments [4] - High interest expenses on investment loans continue to impact results, but discussions for favorable financing for green projects are ongoing [4] Green Initiatives - ON Power's Hellisheiði Power Plant operations became nearly carbon neutral, contributing to around 10% of Iceland's climate targets [5] - Research into wind energy utilization and further geothermal development is underway, highlighting the company's commitment to sustainable energy [6] Operational Metrics - The company has seen a reduction in accidents per million working hours, with a ratio of 4.5 in the latest reporting period [9] - Hot water distribution reached 61.5 million m³, while electricity distribution was 566 GWh [9] - The company aims to avoid CO2 emissions through its operations, with significant reductions projected in future years [9]

Group 1 - Reykjavík Energy is conducting a bond auction on June 19, 2025, offering three classes of green bonds: OR031033 GB, OR280845 GB, and OR180255 GB [1][2][3] - OR031033 GB has a fixed nominal interest rate of 8.30%, with equal semi-annual payments and a maturity date of October 3, 2033. Previously issued bonds in this class totaled ISK 8,990 million [1] - OR0280845 GB carries a fixed interest rate of 3.70%, with equal semi-annual payments and a maturity date of August 28, 2045. This bond is redeemable in 2037, with previous issuances totaling ISK 8,000 million [2] - OR180255 GB has a fixed interest rate of 2.60%, with equal semi-annual payments and a maturity date of February 18, 2055. Previous issuances in this class amounted to ISK 38,521 million [3] Group 2 - The bond issuance and sale are overseen by Fossar Investment Bank hf., which also manages their admission to trading on the Nasdaq sustainable bonds market in Iceland [3] - Bids for the bonds must be submitted by email before UTC 17:00 on June 19, 2025, with transactions settled on June 26, 2025 [4] - Contact information for key personnel involved in the bond auction is provided, including the CFO of Reykjavík Energy and representatives from Fossar Investment Bank [4]

Financial Performance - Reykjavík Energy reported a profit of ISK 4.5 billion for the first three months of the year, compared to ISK 2.9 billion in the same period in 2024 [1] - Revenues increased by 7% year-on-year, while expenses declined by the same proportion [2] - Cash flow from operations rose to ISK 9.4 billion from ISK 8.0 billion in the same period last year [3] Operational Insights - Investment in fixed operational assets remained stable year-on-year at ISK 6.4 billion, primarily driven by Veitur Utilities for district heating system enhancements [3] - ON Power received a reimbursement of approximately ISK 450 million due to a correction in Landsnet's tariff schedule [2] Management Commentary - The CEO of Reykjavík Energy expressed satisfaction with the financial results, highlighting the company's growing capacity for essential investments and a decline in interest expenses [4]

Core Viewpoint - Reykjavík Energy and Norðurál have signed a new power purchase agreement (PPA) for 150 megawatts, which will replace previous contracts and is set to last for up to five years, starting in Q4 2026 [1][5]. Group 1: Agreement Details - The new PPA will phase out previous electricity sales contracts and is expected to significantly enhance the profitability of electricity sales, exceeding projections in Reykjavík Energy's financial forecast for 2025-2029 [3][5]. - The agreement includes a cessation of arbitration proceedings related to prior contract interpretations, indicating a resolution of previous disputes [2]. Group 2: Strategic Importance - This agreement is seen as a crucial step in strengthening the cooperation between Reykjavík Energy and Norðurál, both key players in Icelandic industry, and is vital for securing electricity for environmentally friendly aluminum production [6]. - The CEOs of both companies expressed satisfaction with the negotiations, highlighting the importance of market pricing and the sustainable benefits of the electricity produced [7]. Group 3: Future Outlook - The agreement aligns with Reykjavík Energy's goal of securing improved pricing for electricity sold to power-intensive industries, while also creating new opportunities for sustainable development [4]. - The next financial forecast from Reykjavík Energy is expected to be published in Q4 2025, which will provide further insights into the financial implications of this agreement [3].