„HS Orka demonstrated its strength significantly this year. This strength is reflected in the ability to maintain stable day-to-day operations of the company’s power plants despite the geological events. Volcanic activity and seismic events had minimal impact on HS Orka’s energy production and power plant expansion in Svartsengi and investment projects throughout the year.
The company successfully completed a refinancing on domestic and international financial markets under challenging conditions, and its extensive insurance coverage was renewed.
The expansion and renewal of the Svartsengi power plant have progressed better than expected, even though construction was temporarily halted due to volcanic activity and repeated evacuations in the area. Delays have largely been made up for and the new power plant at Svartsengi, Power Plant 7, will be commissioned later this year.”
Strong financial position
Total revenues for the year amounted to ISK 14.6 billion, a 10% increase year-on-year. The increase was mainly driven by higher electricity sales to the retail market, power intensives, and wholesale. The company’s financial position is strong, with equity totalling ISK 31 billion at year-end and an equity ratio of 39%.
HS Orka refinanced the company’s debt in 2024 and secured credit facilities to support further development in Iceland. The financing covers ongoing expansion and improvement of the power plant at Svartsengi. It marks a key step in the company’s ambitious plans for further growth in geothermal and hydropower, based on power projects classified under the utilisation category in Iceland’s Master Plan for Nature Protection and Energy Utilization. The loan amount of the financing was about USD 290 million, or about ISK 40 billion. The financing was provided by Icelandic, European banks, and US Private Placement investors. A subordinated shareholder loan was also extended by about five years; it was originally issued in November 2022 as part of financing the expansion at Svartsengi.
Extensive infrastructure investments on the Reykjanes Peninsula
Work on the expansion of the Svartsengi power plant progressed well during the year, following delays at the beginning of the year due to volcanic activity. Groundbreaking for the project took place at the end of 2022. The total project cost is estimated at over ISK 12 billion, with commissioning scheduled before year-end 2025.
Two drilling projects were completed on the Reykjanes Peninsula during the year, outside the known production area of the Reykjanes Power Plant. The company expects that the new wells will support energy production in the area.
Key results from the consolidated financial statement
EBITDA was ISK 5,493 million in 2024, compared to ISK 6,013 million the previous year - a 9% decrease. Loss before income tax amounted to ISK 610 million, versus a profit of ISK 1,783 million in 2023.
Financial items had considerable impact on the company’s performance year-on-year. The change is largely explained by a negative exchange rate difference of ISK 70 million in 2024 compared to a profit of ISK 1,019 million the previous year. Net financial expenses rose by ISK 947 million, from ISK 1,700 million in 2023 to ISK 2,646 million in 2024, mainly due to the Svartsengi project.
Fixed assets increased by ISK 7.2 billion year-on-year, primarily due to new investments related to the expansion at Svartsengi and new drilling on the Reykjanes Peninsula. Current assets declined by ISK 2.7 billion, largely due to a decrease in cash resulting from the Svartsengi construction.
Excluding the subordinated shareholder loan, interest-bearing debt rose by ISK 2.8 billion, mostly tied to the Svartsengi project.
Key results
- Total revenue was ISK 14.6 billion, up ISK 1.3 billion (10%) year-on-year. Operating costs amounted to ISK 11.9 billion, rising by ISK 1.8 billion from 2023 mainly due to higher electricity prices impacting power purchases and costs in relation to the geological activities.
- EBITDA was ISK 5,493 million in 2024 compared to 6,013 in 2013, down 9% from previous year.
- Loss before income tax was ISK 610 million, compared to a profit of ISK 1,783 million in 2023.
- Total assets stood at approximately ISK 80 billion at year-end, a 6% increase between years.
- The company’s financial position is strong with equity of ISK 31.2 billion year end. The equity ratio is 39%, or 47% including the subordinated shareholder loan. No distribution was made during the year.
HS Orka’s 2024 Sustainability Report
Alongside the annual financial statements, HS Orka published its 2024 sustainability report, which includes detailed non-financial information of operations and highlights a variety of company initiatives. The report follows international standards (GRI/ESRS) and sections verified by an external auditor (KPMG) are clearly marked.
Reinforcement of District Heating Utility
The 2024 report outlines key response efforts by HS Orka and its collaboration with economic and emergency stakeholders in response to ongoing natural hazards. It specifically details measures to strengthen the district heating system for the Suðurnes region. Several independent projects have been underway in recent years to boost hot water production in Svartsengi, aimed at increasing capacity. The report also discusses joint efforts between authorities, civil protection, HS Veitur, and HS Orka to develop a backup heating system and long-term heating supply solutions outside Svartsengi.
Issues Related to CO2 Emissions
Emissions figures for 2024 and individual well measurements clearly show increased CO₂ emissions in Svartsengi due to seismic activity. The report addresses pressing legal and climate issues — specifically whether emissions from geothermal plants should be categorized as man-made rather than natural emissions in the carbon accounting of companies and the country. Another urgent regulatory and climate issue is to ensure that the legislative framework for the utilization of CO₂ from geothermal sources does not obstruct the progress of energy transition projects.
EU Taxonomy and Green Finance Report
The 2024 sustainability report includes more detailed disclosures than before on the eligibility and environmental sustainability of HS Orka’s activities, based on the EU Taxonomy. For the first time, sustainability is evaluated comprehensively under the taxonomy, with data broken down by revenue, operating expenses, and investments. The report also includes a Green Finance Report, as part of HS Orka’s refinancing was aligned with the company’s green finance framework.
Various awards
HS Orka is proud to have received the 2024 Outstanding Company and Model Company awards, as well as the Equality Scale recognition for 2024. The company also won the IT Award from Ský (the Icelandic Computer Society) in the digital public service category for its automatic volcanic eruption warning system, developed by HS Orka’s resource management team. Additionally, HS Orka received a “Gold” rating in the international EcoVadis sustainability assessment, placing the company in the top 5% globally for sustainability practices — a recognition and motivation in one.
HS Orka Board of Directors
At the Annual General Meeting on April 28, 2025, the following board members were re-elected: Adrian Pike (Chairman), Bjarni Þórður Bjarnason (Vice Chairman), Heike Bergmann, and Margrét Ormslev Ásgeirsdóttir. Alternates elected were Gunnar Jóhannsson, Margrét Sveinsdóttir, Olli Mononen, and Mei Niu.
About HS Orku
HS Orka is built on the solid foundation of Hitaveita Suðurnesja, founded in late 1974. From the beginning, the company has been a leader in renewable energy production in Iceland and is the country’s third-largest electricity producer. Ownership is equally shared between Jarðvarmi, a partnership of 14 Icelandic pension funds, and funds managed by Ancala, a UK-based asset management company. Ancala invests in and improves critical infrastructure businesses across a range of geographies and essential sectors including renewables, transport, utilities, and circular economy.
Innovation has always been a core part of HS Orka’s operations. The development of the HS Orka Resource Park is a key focus, emphasizing full utilization of geothermal resource streams. HS Orka owns and operates two geothermal plants on the Reykjanes Peninsula in addition to the Brú hydropower plant in South of Iceland and the Fjarðará hydropower plants through its subsidiary Íslensk Orkuvirkjun in Seyðisfjörður in Northeast of Iceland.