Reykjavík Energy (Orkuveita Reykjavíkur) delivered a profit of ISK 11.5 billion in 2025. This is more than ISK 2 billion better than in 2024, despite a shock relating to a major customer and reduced revenues from district heating. Year-on-year, operating revenues increased by 2.5%, while operating expenses rose by only 1.7%. Investments in 2025 totalled ISK 33.4 billion, up from ISK 30.9 billion in 2024.
The consolidated financial statements of Reykjavík Energy were approved by the Board today. The consolidation includes, in addition to the parent company, Veitur Utilities, ON Power, Reykjavík Fibre Network and Carbfix. The subsidiaries' financial statements had already been approved by their respective boards. The Board of Reykjavík Energy proposes that a dividend of ISK 4.5 billion be paid for the year, with ISK 1 billion of that amount subject to conditions relating to favourable developments in uncertainty factors during the current year.
Strengthening community sustainability
"Cash from operations - and therefore the companies' investment capacity in support of a sustainable future - increased year-on-year," says Sævar Freyr Þráinsson, CEO of Reykjavík Energy. It amounted to ISK 30.5 billion in 2025, compared with ISK 29.1 billion the previous year. "And it is certainly needed," he adds, "as according to our financial forecast, Reykjavík Energy's investments will amount to ISK 230.5 billion by year-end 2030."
In the current year, Veitur Utilities will complete its smart meter rollout project, expand energy production for district heating, enhance protection of water reserves, and meet increasing wastewater requirements. "Geothermal energy is our principal resource," Sævar notes. "ON Power is acquiring more steam in the Hengill fields, and Reykjavík Energy is advancing exploration and development on new high and low-temperature geothermal fields currently under research. We're looking not only wider but also deeper," he says, referring to planned innovation in deep-drilling projects.
Carbon sequestration at the Hellisheiði Geothermal Power Plant increased by more than half year-on-year, and data traffic on the Reykjavík Fibre Network more than doubled. This growth was driven largely by network expansions following the acquisition of Sýn's backbone network in 2023, as well as by an increase in customers.
Diverse value creation
In 2025, Reykjavík Energy, ON Power and Carbfix joined a development and innovation project at Grundartangi. Among its key components are the utilisation of waste heat from industry in the area and the first carbon capture and mineralisation directly from energy-intensive industry in Iceland. "Here, the diverse capabilities and expertise of Reykjavík Energy should attract a wide range of operations. The aim is to strengthen the competitiveness of the industrial and business area through an integrated approach to more sustainable industrial activity. This enhances energy security and resilience while simultaneously reducing emissions. We believe that comparable circular-economy projects can become a reality elsewhere in the country. In this way, new companies will emerge, employment will grow, and value creation for society will increase," Sævar adds.
"I am extremely proud of the staff and management of Reykjavík Energy, who responded swiftly and decisively when a payment default occurred with our largest power purchaser. Despite difficult circumstances, Reykjavík Energy's operating profit increased by 2.4% year-on-year, and the company delivered a strong financial result. The full impact of the matter is still uncertain, but we place strong emphasis on protecting Reykjavík Energy's financial resilience so the company can continue to deliver essential investments and important projects for society," says Sævar Freyr Þráinsson, CEO of Reykjavík Energy.
Sustainability Report 2025 and Climate Account
The Board Report included in Reykjavík Energy's 2025 Annual Financial Statements also serves as the company's Sustainability Report for the year. It provides a clear overview of progress and challenges related to environmental, climate, social and governance matters within Reykjavík Energy. Furthermore, Reykjavík Energy publishes its Climate Account today, which is attached.
Managers' Overview
| Operating year | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Amounts are at each years price level in ISK millions | |||||
| Revenues | 68,444 | 66,782 | 61,169 | 55,644 | 51,890 |
| Expenses | (28,185) | (27,720) | (25,469) | (21,220) | (18,380) |
| Thereof energy purchase and distribution | (6,449) | (7,191) | (7,264) | (6,718) | (5,872) |
| EBITDA | 40,259 | 39,062 | 35,701 | 34,424 | 33,510 |
| Depreciation and amortisation | (17,485) | (16,830) | (15,797) | (14,439) | (13,257) |
| EBIT | 22,774 | 22,232 | 19,904 | 19,984 | 20,253 |
| Cash flow statement | |||||
| Received interest income | 1,230 | 1,066 | 591 | 313 | 256 |
| Paid interest expenses | (8,335) | (8,037) | (7,040) | (5,061) | (4,398) |
| Net cash from operating activities | 31,422 | 29,725 | 27,672 | 26,358 | 25,582 |
| Working capital from operation | 30,462 | 29,113 | 27,465 | 27,587 | 23,675 |
| Liquid funds | 31.12.2025 | 31.12.2024 | 31.12.2023 | 31.12.2022 | 31.12.2021 |
| Deposits and marketable securities | 15,364 | 11,594 | 8,670 | 11,071 | 14,657 |
| Cash and cash equivalents | 10,827 | 16,438 | 10,342 | 6,651 | 10,320 |
| Undrawn credit lines | 20,053 | 4,550 | 14,660 | 9,100 | 9,629 |
| Liquid funds total | 46,244 | 32,582 | 33,672 | 26,821 | 34,606 |
| Electricity production (GWh) | 3,247 | 3,384 | 3,509 | 3,494 | 3,545 |
| Hot water production (million m³) | 108 | 119 | 112 | 107 | 104 |
| Water production (million m³) | 28 | 30 | 32 | 29 | 28 |
| Data traffic (Terabytes) | 1,268,000 | 574,000 | 518,000 | 443,000 | 396,000 |
| CO2 mineralised (tonnes) | 18,800 | 12,100 | 12,500 | 12,300 | 13,400 |
| H2S mineralised (tonnes) | 5,107 | 4,899 | 5,924 | 6,021 | 7,476 |
| Unexplained gender pay gap | -0.30% | 0.59% | -0.10% | 0.10% | -0.20% |
Contact:
Snorri Hafsteinn Þorkelsson
CFO
snorri.hafsteinn.thorkelsson@orkuveitan.is
