Iceland's HS Orka says H1 profit soars 800% y/y

Icelandic geothermal company HS Orka hf on Monday reported a profit of ISK 1.28 billion (USD 11m/EUR 10m) for the first half of 2016, up by 800% year-on-year, in spite of a decline in revenues.

The company’s bottom line result was ISK 142 million in the same six months a year back.

Operating revenue was down to ISK 3.51 billion from ISK 3.82 billion. The company said the decline reflected decreases in generation and sales to fish smelters due to a poor fishing season.

HS Orka swung to a January-June 2016 net finance income of ISK 874 million from a ISK-1.57-billion expense a year back. The firm explains this with an increase in aluminum prices, which helped it book a gain from changes in fair value of embedded derivatives of ISK 841 million. Also, there were positive exchange rate differences of ISK 150 million. In the first six months of 2015, Orka recorded losses from those items of ISK 1.24 billion and ISK 282 million, respectively.

During the period under review, the company booked a total comprehensive profit of over ISK 1.19 billion, up from a profit of ISK 75 million in 2015. Its equity ratio improved to 62.3% from 58.6% at the end of last year.

Orka is 66.6% owned by Canada's Alterra Power Corp.

(ISK 100 = USD 0.826/EUR 0.751)

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