Landsvirkjun's total assets amounted to USD 4,569 million at year-end 2013. Landsvirkjun's liquidity balance is good but cash and cash equivalents at year-end 2013 amounted to USD 288 million. The Company has access to Revolving Credit Facilities, the undrawn amount of which is USD 291 million. In addition, undrawn long term loans amount to USD 10.7 million. Liquid assets and undrawn loans, therefore, amounted to a total of USD 590 million.
Interest bearing liabilities amounted to USD 2,717 million at year-end, 2013, or an increase by USD 93 from year-end, 2012 when they amounted to USD 2,625 million. Taking into account cash and cash equivalents and restricted cash Landsvirkjun's net debt amounted to USD 2,429 million at year-end compared to USD 2,436 million at year-end, 2012 and decreased by USD 6.4 million.
The Company's net debt amounted to USD 2,429 million at year-end 2013 and remain almost unchanged despite the cash from operation taken into account investments amounted to USD 109 million. This is mainly due to calculated foreign exchange loss on loans in other currencies than USD and indexation. The weighted average maturity time of the loan portfolio was around 6.3 years.
The Company's equity decreased in the year and amounted to USD 1,658 million at year-end. Equity ratio also decreased and was 36.3% at year-end 2013 compared to 37.6% at year-end 2012.
Net liabilities and equity ratio
Landsvirkjun is still leveraged but in the last years the Company has systematically decreased its debt and improved the criterion that affects the Company's credit rating.
The Group's leverage measured against operating revenue before depreciation and amortisation (net liabilities / EBITDA) decreased from 7.58x at year-end 2012 to 7.38x at year-end 2013. The ratio of funds from operations (FFO) to net debt went from 9.9% at year-end, 2012 to 10.6% at year-end, 2013.
The interest spread (EBITDA/net interest expense) increased to 3.51x from 3.27x at year-end, 2012. The ratio of funds from operations (FFO) to interest expenses increased from 2.36x at year-end, 2012 to 2.66x at year-end, 2013.
As return on equity is calculated on return, embedded derivatives and unrealised foreign exchange differences can have a considerable effect on the results. The return on equity was 3.3% in the year 2012 but negative by 2.3% in the year 2013.
Interest coverage and net liabilities / EBITDA
Here you can download the financial statements of Landsvirkjun for the year 2013.