HS Orka’s power plants continued to perform steadily in 2025 despite seismic activity and volcanic eruptions. The expansion and refurbishment of the Svartsengi Power Plant were completed on time and on budget, increasing the production capacity of the plant considerably. EBITDA for the year reached an all-time high, and the company’s strong financial position provides a solid foundation for continued growth and increased investment in sustainable energy utilization.
Total revenue for the year amounted to approximately ISK 15.7 billion, an 8% year-on-year increase. This was primarily driven by increased electricity sales in the retail market, to large customers and in wholesale markets. The company’s financial position is strong, with total equity of ISK 37 billion at year-end. The equity ratio is 42%.
Tómas Már Sigurðsson, CEO, is proud of the results and states that the 2025 was the most successful operating year in HS Orka’s history:
“We reached a significant milestone in the company’s development with the commissioning of the seventh power station at Svartsengi at year-end. This was achieved in full accordance with our plans, despite various challenges posed by natural conditions—challenges we anticipate will soon be behind us. This strong operational performance provides a solid foundation and momentum for the company’s continued growth.”
Key figures
Total revenue amounted to ISK 15.7 billion, representing an increase of ISK 1.1 billion (8%) year-on-year. Operating expenses were approximately ISK 12.3 billion, increasing by ISK 336 million from 2024, largely attributable to maintenance of HS Orka’s power plants.
EBITDA amounted to ISK 6,499 million in 2025, compared to ISK 5,493 million in the previous year, representing an 18% year-on-year increase.
Profit before tax amounted to ISK 4,608 million, compared to a loss of ISK 610 million in 2024. Year-on-year fluctuations in profit before tax are primarily attributable to favourable exchange rate differences on financial items in 2025, compared to exchange rate losses in 2024.
Total assets amounted to approximately ISK 89.6 billion at year-end, representing an 11% increase year-on-year.
The company’s financial position remains strong, with equity amounting to ISK 37.5 billion at year-end. The equity ratio stood at 42%, or 49% when including subordinated loans from shareholders. No dividends were distributed during the year but retained earnings decreased by 286 million due to share capital decrease in 2025.
Expanded and refurbished Svartsengi Power Plant and exploratory drilling at Sveifluháls
A new 55 MW generating unit was formally commissioned at the Svartsengi geothermal Power Plant on 1 December 2025. All time and cost plans were met despite some delays during construction due to seismic activity and volcanic eruptions. The expanded capacity at Svartsengi creates opportunities to increase energy production at the plant in accordance with the existing generation license for the area, which is 85 MW.
The expansion of the Svartsengi Power Plant is part of HS Orka’s extensive infrastructure development over the past six years. The Reykjanes Power Plant was expanded by 30 MW, a 10 MW hydropower plant at Brú in Biskupstungur was completed, and investments were made in the Fjarðará Hydropower Plants at the head of Seyðisfjörður. Several major development projects are also in preparation, both in geothermal energy and hydropower.
Preparations have begun for the utilization of geothermal energy in Eldvörp, in the immediate vicinity of Svartsengi, where geothermal drilling first took place in 1983. The plan is to transfer energy obtained from Eldvörp for processing at the refurbished Svartsengi Power Plant.
The first deep exploratory well at Sveifluháls in the Krýsuvík area was drilled in summer 2025, and additional exploratory wells are planned for 2026. Further research is a prerequisite for assessing the area’s long-term utilization potential. Work is underway on permitting and further project preparations based on a research and utilization agreement with the Municipality of Hafnarfjörður.
The preparations for the 55 MW Hvalá Hydropower Plant in Ófeigsfjörður in the Westfjords, along with other hydropower projects in the region, are continuing through HS Orka’s subsidiary, VesturVerk.
Key results from the consolidated financial statements
Financial items had a significant impact on year-on-year performance. Broadly, the change is explained by favorable exchange rate differences of ISK 2,345 million in 2025 compared with an exchange rate loss of ISK 70 million the year before. Despite increased borrowing in connection with the Svartsengi project, net finance costs decreased by ISK 551 million year on year due to the strengthening of the Icelandic króna against the US dollar, as HS Orka’s loans are mostly in USD and EUR. Net finance costs were ISK 2,095 million in 2025 versus ISK 2,646 million in 2024.
Fixed assets increased by ISK 10.6 billion year-on-year, primarily attributable to new investments associated with the expansion of the Svartsengi Power Plant, as well as drilling of boreholes in the vicinity of Reykjanes Power Plant. Current assets decreased by ISK 1.5 billion, largely reflecting a reduction in cash and cash equivalents due to ongoing construction works at Svartsengi.
Interest-bearing debt and borrowings related to capital expenditure increased by ISK 1,9 billion year-on-year, with the increase mainly attributable to the expansion and refurbishment of the Svartsengi Power Plant.
HS Orka Sustainability Report 2025
Alongside the publication of its annual financial statements, HS Orka issues a sustainability report for 2025. The report contains a variety of information on the company’s operations and impacts in the past year and highlights diverse projects. The reporting is based on the Voluntary Sustainability Reporting Standards (VSME) and also takes into account relevant requirements of the European Sustainability Reporting Standards (ESRS) for material topics, in line with the results of the double materiality assessment carried out in 2025.
Various recognitions
In 2025, HS Orka underwent a comprehensive sustainability assessment by the international ratings agency EcoVadis for the second time and retained its Gold certification. The results place HS Orka among the top 5% of companies worldwide. In addition, the preparation of the Hvalárvirkjun hydropower project—by VesturVerk, HS Orka’s subsidiary—received an international Gold certification from the Hydropower Sustainability Alliance following an extensive sustainability assessment by international evaluators.
Security of supply and development
The sustainability report describes HS Orka’s key actions to ensure the security of electricity and water supply in light of ongoing seismic activity on the Reykjanes Peninsula. Particular emphasis is placed on the expansion and refurbishment of the Svartsengi Power Plant, where a new high-capacity generating unit was commissioned at year-end. The report also covers extensive exploratory drilling in the Krýsuvík area and preparations for utilizing geothermal heat in Eldvörp with a connection to Svartsengi. It also discusses the development of response systems and HS Orka’s cooperation with civil protection authorities, distribution utilities, and other response partners regarding natural hazards and other threats.
Issues related to carbon dioxide emissions
The sustainability report highlights how seismic activity along the Sundhnúkur crater row has influenced operations and led to an increase in the amount of carbon dioxide passing through the processing channels of the Svartsengi Power Plant. Measurements clearly show a link between these natural geological processes and increased carbon dioxide emissions from geothermal areas. The report therefore highlights the importance of understanding and monitoring naturally occurring emissions associated with geothermal sources.
The report discusses urgent matters concerning carbon dioxide emissions from geothermal fields and how those emissions are treated in carbon accounting. It also points to the impact of current regulations on opportunities to utilize carbon dioxide in energy transition projects, including for the production of e-fuels.
Geothermal energy provides a stable, baseload source of renewable electricity and heat with a relatively small geographical footprint and high availability compared to many other energy sources. Unlike variable renewables, geothermal power plants can operate continuously, supporting energy security while delivering much lower lifecycle greenhouse gas emissions (well below EU´s 100g CO2e/kWh threshold for sustainable operations) than fossil based alternatives.
HS Orka Board of Directors
At the Annual General Meeting on 28 April 2026, Adrian Pike (Chair), Bjarni Þórður Bjarnason (Vice Chair), Heike Bergmann (Director), and Margrét Ormslev Ásgeirsdóttir (Director) were re-elected to the Board. Elected as alternates were Gunnar Jóhannsson, Margrét Sveinsdóttir, Olli Mononen, and Abby Tsai.
