Interest Coverage

Interest coverage is a performance indicator that demonstrates how capable the company is of honouring its interest expense obligations. The Group's owners have stipulated as conditions for dividends to be paid to them, that cash from operations, plus interest income, shall be at least 3.5 times higher than interest expenses. Reykjavik Energy Group fell short of that target in the immediate aftermath of the financial crisis, but has exceeded it from 2010 and onwards.

Interest coverage