Icelandair Group hf.
Financial Statement Release
4th Quarter Performance Matches Company's Expectations
Performance below 2010 levels due largely to high fuel prices
Fuel prices 28% higher than in Q4 2010
Profit in 2011 ISK 4.5 billion
Working capital from operations ISK 12.5 billion
Icelandair Group financial position strong
Equity ratio 36% and net interest-bearing debt ISK 11.1 billion
The Board of Directors proposes a dividend of ISK 0.8 billion to shareholders in 2012
Björgólfur Jóhannsson, President and CEO
“Icelandair Group’s EBITDA in the fourth quarter was negative by ISK 0.1 billion, as compared to a positive result of ISK 1.1 billion in the fourth quarter of 2010. High fuel prices led to significant increases in cost in the quarter, which accounts for the decline in performance between years. As regards the year as a whole we are quite satisfied with the result of ISK 4.5 billion in profit, particularly in the light of the negative impact of increased fuel prices, a volcanic eruption in Grímsvötn and work stoppages. The Group’s financial position is strong, the equity ratio is 36% and cash and marketable securities amounted to ISK 13.1 billion at year-end. I would like to thank our experienced and determined staff for this success.
The year 2011 was characterised by significant organic growth. We anticipate still further expansion of our operations in 2012. Icelandair will have the most extensive flight schedule in its history in place in 2012, and bookings for the first months of the year are promising. Icelandair Hotels will open a new hotel by Reykjavik Harbour in the spring, and Air Iceland will continue to increase capacity on its flights to Greenland.
Two new aircraft will be added to Icelandair’s fleet in the first half of this year, which will entail some implementation cost. Also, fuel costs are higher than last year, and the exchange rate of the euro against the dollar is less favourable; we therefore anticipate that the performance in the first quarter of 2012 will be somewhat short of last year’s. Based on the Company’s budget for 2012 as a whole, we anticipate an EBITDA in the range of 11.0-12.0 billion an increase from 2011 when EBITDA was ISK 10.4 billion.
For further information, please contact:
Björgólfur Jóhannsson President and CEO, Icelandair Group, tel. +354-896-1455
Bogi Nils Bogason, CFO, Icelandair Group, tel. +354-665-8801