News
Geysir Green Energy acquires all stock in Iceland Drilling Co.
Geysir Green Energy has finalized the purchase of all stock in Iceland Drilling Co. (Jarðboranir hf.) from Renewable Energy Resources (RER), a subsidiary of Atorka Group. The purchase price is 14.3 billion ISK and is paid with stock in Geysir valued at 7.2 billion ISK, a vendor loan of 1.5 billion and cash.
Iceland Drilling is a world leader in the exploitation of geothermal energy. The company has grown significantly in recent years and is now the largest geothermal drilling company in world. Having made significant investments in machinery in recent years has positioned Iceland Drilling to increase their activities abroad. The recent acquisition of technically advanced drilling rigs designed to reach greater depths will increase the firms’ productivity as well as safety measures for employees, thereby bolstering Iceland Drilling’s competitive advantage.
Iceland Drilling was born out of the Icelandic geothermal industry and maintains long and successful working relationships with all of Iceland’s energy companies. The company has recognized opportunities abroad and owns the subsidiary Iceland Drilling UK Ltd., which has successfully drilled for projects in the United Kingdom and the Azores. The recent establishment of Hekla Energy GmbH in Germany is a significant leap forward in the export of Icelandic geothermal technologies. Iceland Drilling’s expected turnover in 2008 is around 8 billion ISK, and the company’s income from activities outside of Iceland is expected to multiply in coming years.
A unique company on a strong foundation
Geysir has become one of the world’s leading firms in geothermal energy, and its acquisition of Iceland Drilling will increase its strength. Geysir’s equity is now about 20 billion ISK and the firm has made investments totaling about 40 billion ISK in all areas of geothermal use. The companies in which Geysir has invested are involved with exploration and development of geothermal resouces, as well as the operation of power plants and district heating systems, giving Geysir a unique status in the industry. The purchase of Iceland Drilling increases Geysir’s areas of operation, and it can now offer the geothermal industry a more complete service in the exploitation of geothermal energy, from drilling and exploration to financing and operations.
Geysir also acquired RER’s 16% share in Enex, bringing Geysir’s ownership of Enex up to 43%. Enex has been involved in the development of geothermal projects all over the world, and is currently involved with construction-stage projects in the US and Germany.
Amongst Geysir’s other investments are a 32% stake in Hitaveita Sudurnesja hf, a leading Icelandic geothermal operator, a 46% share of Exorka International which is currently involved in the development of geothermal projects in Germany, and a close to 20% stake in Canadian firm Western GeoPower Corpoaration, currently developing a geothermal power plant in California. Western GeoPower is listed on the Toronto Stock Exchange. Further, Geysir has acquired a small stake in the Philippine company PNOC EDC, the world’s largest geothermal operator.
Geysir recognizes the tremendous opportunities for increased activities in the near future and will focus on projects currently under review in the US, Europe and Asia.
At the end of the past days’ exchanges, FL Group is still the largest shareholder in Geysir Green Energy with a 43% stake. Renewable Energy Resources, the Atorka subsidiary, is now Geysir’s second largest shareholder with a 32% stake. Other shareholders are Glitnir Bank, VGK Invest, Bar Holding, and Reykjanesbaer Municipality.
Hannes Smárason, Chairman of Geysir Green Energy:
“Our purchase of Iceland Drilling is an important step in the development of Geysir Green Energy. In just a few months the company has been successfully strengthened and is now prepared to take on a variety of projects in a sector growing in importance and attention.
In the short time since Geysir’s establishment, the company has received high levels of attention both within Iceland and abroad. Foreign investors have shown the company a lot of interest due to the high level of specialized knowledge within the firm coupled with its financial strength and plans for development.
We look forward to working with the employees and management of Iceland Drilling towards the common goals of the two companies, and we are greatly optimistic about this new relationship.”
Ásgeir Margeirsson, CEO of Geysir Green Energy:
“Our purchase of Iceland Drilling greatly strengthens Geysir Green Energy’s status, increasing our capacity to provide a wide array of services in the different markets. Geysir is now a diverse and strong investment firm in the field of geothermal energy and has created for itself a unique position and solid reputation in the world of renewable energy. We will continually move forward as a powerful innovator and active participant in geothermal exploitation around the world.”
Bent S. Einarsson, CEO of Iceland Drillling:
"We welcome this change of ownership of our company and we see huge opportunities in following Geysir Green Energy along a path of investments in projects and companies related to the development of geothermal energy around the world.
Geysir’s emphasis on global activities coincides with our goals and intentions in this field, that are indicated by the recent establishment of Hekla Energy and the purchase of large new high-tech drilling rigs. Iceland Drilling is already the worlds leading geothermal drilling company and the cooperation within Geysir’s group of companies will clearly strengthen our operations and open up new exciting opportunities for the employees of Iceland Drilling.“
