Hafnarfjörður's half-year accounts for the first 6 months of 2025

The municipality's half-year accounts for the first 6 months

The operating profit of the Hafnarfjörður municipality group, A and B sections, was a positive 1,875 m.kr. before depreciation and financial items (EBITDA) in the first half of 2025, which is 85 m.kr. below forecast. Interest and depreciation costs were 307 m.kr. higher than had been forecast. The Group's result for the first half of the year was a loss of SEK 620 million, whereas a loss of SEK 228 million had been forecast for the period. Operating cash flow amounted to SEK 1,264 million at the end of June, which is SEK 579 million above forecasts.

The operating profit of the A-section before depreciation and financial items (EBITDA) was a positive 735 m.kr., which is 213 m.kr. below the forecast. Operating income was 345 m.kr. above budget, but operating expenses were 558 m.kr. higher than planned, which is mainly explained by new teachers' collective agreements earlier in the year. The A-section result for the City of Hafnarfjörður was a deficit of ISK 1,152 million for the first six months, whereas the budget had forecast a deficit of ISK 696 million for this period.  Operating cash flow in Section A amounted to 299 m.kr. at the end of June, which is 576 m.kr. above the forecast.

Total assets of Parts A and B, according to the balance sheet as at 30 June 2025, were 103.9 billion króna, and liabilities and obligations were 69.2 billion króna. Equity was 34.6 billion króna and the group's equity ratio was 33.31%.

Valdimar Víðisson, Mayor:

„The first half of the year has in many respects been more difficult than anticipated, particularly with regard to wage costs, as wage increases were much higher than those budgeted for. These costs are reflected in full in the half-yearly accounts, as it is not yet clear how the government's countermeasures regarding the collective agreements, particularly concerning children with multiple needs, will affect the City of Hafnarfjörður. This is expected to become clearer in the second half of the year. Furthermore, plot allocations and densification projects have been below plan due to high interest rates, which has reduced the borough's income from plot and building permit fees. However, the significant development that has taken place in the town in recent years is resulting in increased income tax revenue and, consequently, a solid revenue stream for the future for the City of Hafnarfjörður.“