November 13 (Renewables Now) - Icelandic geothermal company HS Orka hf on Friday reported a net profit of ISK 3.18 billion (USD 30.6m/EUR 26.2m) in the first nine months of 2017, rising from ISK 2.71 billion thanks to non-cash gains and improved aluminium prices.
An increase in future aluminum prices led to a gain in the fair value of embedded derivatives in power purchase agreements (PPAs) of ISK 2.86 billion, up from ISK 1.65 billion in the same period of 2016.
The company's controlling shareholder is Canadian renewables firm Alterra Power Corp (TSE:AXY), which recently got an acquisition proposal by Innergex Renewable Energy Inc (TSE:INE).
HS Orka's operating revenue improved to ISK 5.44 billion from ISK 5.11 billion, mainly helped by continuing growth in the sale of electricity to the retail market and better aluminium prices, which resulted in increased revenues from aluminium-based sales. The results were partly offset by the strengthening of the Icelandic Krona against the US dollar, the company explained, adding that sales of geothermal water in the nine months fell due to the unusually warm weather this year.
More details about HS Orka’s results in the 9-month period can be seen in the table:
|Results (in ISK million)||Jan-Sep 2017||Jan-Sep 2016|
|Total comprehensive profit||3,206||2,501|
|Net finance-related income||2,812||2,135|
|Operating profit (loss)||107.9||344.7|
(ISK 100 = USD 0.965/EUR 0.827)