Hafnarfjörður's results exceed expectations
The interim statement for the Municipality of Hafnarfjörður, for the period 1 January – 30 June 2023, was presented at a meeting of the Municipal Council on 24 October. The performance of A- and B-sections is 208 million króna better than forecast, and the performance of the A-section is 388 million króna better. Operating cash stood at 1,315 million króna at the end of June, which is significantly above the forecast.
A- and B-section results 208 million króna better than forecast.
The operating result for the City of Hafnarfjörður Group, A- and B-sections, was a deficit of 499 million krónur in the first half of 2023, whereas the budget had provided for a deficit of 707 million krónur. The result is therefore 208 m.kr. better than forecast. The group's operating profit before depreciation and financial items (EBITDA) was positive at 2,215 m.kr., which is 830 m.kr. above forecast. Operating cash flow amounted to 1,315 m.kr. at the end of June, which is significantly above forecast.
Operating results of Section A 388 million better than forecast
The operating result for Section A of Hafnarfjörður Municipality was a deficit of 603 million krónur in the first six months, whereas the budget had provided for a deficit of 991 million krónur. The result is therefore 388 m.kr. better than forecast. The main deviations from the plan for Section A are in financial items, which are 315 m.kr. over plan for the period, but this is offset by revenues being higher than forecast. The operating result before depreciation and financial items (EBITDA) for the A-section was positive at 1,408 m.kr., which is 752 m.kr. above forecast.
Total assets of Parts A and B, according to the balance sheet as at 30 June 2023, amounted to 86.1 billion króna, and liabilities and obligations to 58.4 billion króna. Equity was 27.7 billion króna and the group's equity ratio 32.21%.
Rósa Guðbjartsdóttir, Mayor: „Operating performance in the first half of the year is satisfactory in the current economic environment of inflation and high interest rates. The results are in fact considerably better than forecast. It is now beneficial that emphasis has been placed on operational restraint and the reduction of debt ratios in recent years. In the coming quarters, local authorities will face significant operational challenges in order to deliver statutory services. When drawing up next year's budget, we will continue to prioritise prudence in the expenditure and operations of the City of Hafnarfjörður, whilst at the same time ensuring residents receive a reliable service.“
The interim statement of the City of Hafnarfjörður, for the period 1 January – 30 June 2023, was submitted at meeting of the town council on Tuesday, 24th October.