Landsnet’s Landmark Year: Investing in Iceland’s Energy Future
The year 2025 marked one of Landsnet’s most significant periods of investment and strategic development, as detailed in the annual financial statements approved by the Board of Directors on February 24th. Despite a dynamic operating environment, the company achieved stable operations and reported a robust financial position, laying a strong foundation for Iceland’s energy future.
Key Highlights from a Transformative Year:
- Record Investments: Approximately USD 118 million was invested in strengthening the transmission system, making 2025 one of the largest investment years in the company’s history.
- Strong Core Operations: Profit from core operations rose to USD 44.9 million, an increase of USD 1.8 million year-on-year.
- Shareholder Value: A proposal for dividend payments to owners amounting to USD 22.5 million underscores the company’s solid performance.
- Operational Excellence: The year saw well-executed operations, aligning with plans despite various challenges.
Ragna Árnadóttir, CEO of Landsnet, emphasized the strategic importance of these investments: “The year 2025 was one of the company’s largest investment years in the development of the transmission system. We placed a strong emphasis on strengthening the grid while carrying out essential maintenance work nationwide. A major achievement was the successful completion of connecting Vestmannaeyjar to the grid through the installation of two new submarine cables. Furthermore, we took an important step to enhance security of supply and delivery capacity in Northeast Iceland by signing a letter of intent on measures to strengthen the power system in the region. As electricity demand is set to increase long-term, and the energy transition necessitates a more robust and flexible grid, our role is to ensure the transmission system supports this evolution through reliable infrastructure. With stable operations and clear project prioritization, Landsnet is well positioned to strengthen the grid and create value for society and the economy.”
Fortifying Iceland’s Unique Power System: Security and Resilience
Given Iceland’s isolated power system, disconnected from international grids, Landsnet’s focus on strengthening critical infrastructure and systematic maintenance in 2025 was paramount. Efforts were concentrated on boosting preparedness and reinforcing the system to ensure unwavering security of supply under diverse circumstances.
Ragna Árnadóttir further highlighted the broader economic perspective: “When assessing Iceland’s competitiveness, it is essential to consider the total cost of electricity, security of supply, and the resilience of the system. The transmission system must be capable of withstanding shocks without external support. Its secure and stable operation is a prerequisite for the development of society and the economy.” Landsnet’s tariff structure, designed to reflect the actual costs of developing and operating the transmission system, is crucial for balancing necessary system development, supply security, and economic competitiveness in the face of substantial future investment requirements.
Robust Financials Pave the Way for Future Development
Landsnet’s financial performance in 2025 was notably strong, characterized by stable operations throughout the year. The company reported a profit of USD 44.9 million, compared to USD 43.1 million in 2024. At year-end, total assets stood at USD 1,371.6 million, with equity reaching USD 665.5 million. Cash generated from operating activities amounted to USD 97.7 million, underpinning the year’s significant investments. The proposed dividend payment of USD 22.5 million reflects confidence in the company’s sustained financial health, which is a crucial prerequisite for the ongoing long-term development and strengthening of the transmission system.
Operating revenues for 2025 were USD 208.3 million, up from USD 189.0 million in the previous year, driven by diversified revenue streams from energy-intensive users, transmission to distribution system operators, in-feed fees, and the sale of transmission losses and ancillary services. While operating expenses also increased, the company’s Earnings Before Interest and Taxes (EBIT) saw a healthy rise to USD 76.9 million. Landsnet’s strong equity ratio of 48.5% at year-end further solidifies its financial resilience.
Dive Deeper: Access the Full Report
For more comprehensive details on the year’s performance, Landsnet’s Annual and Sustainability Report is published alongside the financial statements and is available on the company’s website: www.landsnet.is.
About Landsnet hf.
Established in 2005, Landsnet is entrusted with operating and developing Iceland’s electricity transmission system, a critical component of the nation’s infrastructure, and administering its system operations.
Source: Original Article
