Landsvirkjun's profit declines to USD 47.5 in 9-mo

Iceland's main power producer Landsvirkjun made a profit of USD 47.5 million (EUR 45m) in the first nine months of 2016, down from USD 76.3 million in the same period of 2015.

The decline reflects unrealised financial items, as well as a 2.2% decrease in operating revenues to USD 307.1 million, the company, which operates hydropower, geothermal and wind power plants, said this week.

Profit before unrealised financial items was down 6.7% to USD 88.8 million.

"Aluminium prices continued to decrease and are now 9% lower than in the same period last year and historically very low, which had a negative effect on revenues as a part of our electricity sales contracts are connected to the development of aluminium prices," explained chief executive Hordur Arnarson.

Currently Landsvirkjun is re-negotiating power purchase agreements (PPA) with sales companies in the wholesale market, the CEO also said. He added that the average price to the wholesale market has been almost unchanged for the last years with no change to the trend expected next year.

(USD 1.0 = EUR 0.947)

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