Profits Total ISK 250 Million After Calculated Taxes
The Consolidated Interim Financial Statement of the Iceland Prime Contractor Group was ratified at a meeting of the Company´s Board of Directors on 22 November 2002. The Consolidated Interim Financial Statement contains the consolidated statements of the parent company and its subsidiaries. It was prepared according to the same accounting principles as those used for the prior year.
Operations for the First Nine Months of 2002.
The operating revenues for Iceland Prime Contractor totalled ISK 5.477 billion for the first nine months of the year 2002, as opposed to ISK 6.521 billion for the same period in the year 2001. Profits before financial items, taxes and depreciation (EBITDA) amounted to ISK 390 million, compared with ISK 744 million for the first nine months of 2001. Profits before financial items and taxes were ISK 176 million, as opposed to ISK 514 million for the first nine months of the prior year. Profits before taxes, including the income from an associated company, amounted to ISK 319 million, compared with a loss of ISK 136 million for the first nine months of 2001. After calculated taxes, the Company´s profits for the period totalled ISK 250 million, compared with a loss of ISK 20 million for the first nine months of the prior year.
Net financial items were positive in the amount of ISK 55 million for the first nine months of 2002, as opposed to a negative balance of ISK 632 million for the same period in 2001. This change is largely explained by fluctuations in the exchange rate of the Icelandic krona, as a significant proportion of the Company´s debt is in foreign currency. In addition, the financing activities that have been an increasing part of Company operations in recent months have generated satisfactory returns. Financial expenses include approximately ISK 106 million charged during the year, as all of the Company´s marketable securities are now entered at market price, whereas a portion of them had previously been recorded at the original cost price.
The Company has adjusted its financial statements. If this had not been done, the recorded profits for the first nine months of 2002 would have been ISK 19 million lower and equity would have been ISK 68 million lower. The difference between profits and the changes in equity due to these adjustments is, for the most part, related to the performance of the associated company, Landsafl Ltd., and its real estate operations.