Arendals Fossekompani: Second quarter financial results
(Arendal, 18 August 2023) Arendals Fossekompani ASA (OSE:AFK) reported revenues
of NOK 1,404 million (1,062 million) and an operating profit of NOK 148 million
(70 million) in the second quarter of 2023. Ordinary profit after tax, but
before non-controlling interests, totaled NOK 41 million (23 million). Arendals
Fossekompani will pay a dividend of NOK 1.00 per share for the quarter.
"We are pleased to report yet another good quarter and our best half-year
operating result ever," says Benjamin Golding, Chief Executive Officer at
After two quarters, total revenues amount to NOK 2,810 million (2,113 million)
with an operating profit of NOK 350 million (219 million).
"Operating profit in the second quarter was driven by increased production of
hydropower and strong results from key portfolio companies Volue, NSSLGlobal and
ENRX, in addition to improved results in Tekna," says Golding.
A lower spot price for electricity in the NO2 price area was offset by higher
production, lifting revenues from hydropower production to NOK 127 million (82
million) and operating profit to NOK 107 million (68 million).
Volue generated solid growth rates during the second quarter, with total
operating revenues amounting to NOK 375 million (NOK 298 million). Recurring
revenues constituted 62% of total revenues. Adjusted EBITDA totaled NOK 63
million (44 million), equal to an adjusted EBITDA margin of 17% (15%). In the
second quarter, Volue made its biggest acquisition to date in the shape of
Enerim Oy's Energy Market Services division. Through the acquisition, Volue has
created the undisputed Nordic market leader in the space of
Building on a strong first quarter, Tekna increased revenues by another 17% in
the second quarter. This represents 45% growth compared to the same quarter last
year. Total revenues came in at CAD 11.0 million (CAD 7.6 million). Adjusted
EBITDA was CAD -0.6 million, an improvement of CAD 2.6 million compared to the
second quarter last year. Tekna continues to experience strong demand for its
advanced materials and systems.
Total operating revenues for ENRX amounted to EUR 37 million (EUR 31 million), a
20% increase from the same quarter in 2022. The company showed solid growth in
all geographical regions. EBIT for the quarter ended at EUR 0.9 million (0.0
million) and was negatively impacted by additional restructuring costs of EUR
1.5 million related to ENRX's German operations. ENRX was awarded an EUR 12.7
million contract to deliver a dynamic wireless charging system that will allow
vehicles to charge while driving on a US highway.
NSSLGlobal reported continued strong sales and operating profit as well as solid
order intake. Revenues in the second quarter were GBP 23.0 million (GBP 23.9
million) and operating profit ended at GBP 4.7 million (GBP 6.3 million),
corresponding to an operating margin of 20% (26%). NSSLGlobal's sales and
pipeline continues to be strong across both governmental and maritime sectors.
"Our companies are well positioned within high-growth global industry verticals
with a positive long-term outlook. The portfolio is diversified, providing both
stable cash flow generation and attractive growth opportunities," says Golding.
Arendals Fossekompani's financial position remains solid. The company's
available cash at 30 June amounted to NOK 1,062 million. In addition, the
company has undrawn credit facilities of NOK 1,492 million, securing available
liquidity of NOK 2,554 million as per end of the quarter.
AFK will pay a quarterly dividend of NOK 1.00 per share, based on the company's
quarterly dividend policy.
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For additional comments, please contact:
Benjamin Golding, Chief Executive Officer: +47 974 04 496
Hanne Watts, VP Communications & Sustainability: +47 974 04 496
Arendals Fossekompani | www.arendalsfossekompani.no
Arendals Fossekompani (AFK) is a long-term investment company that owns energy-
and technology-related companies which enable the transition to energy security
and next generation industrial technologies. AFK operates globally in several
future-oriented industries, including 3D printing, wireless charging, algo
trading, satellite services, battery- and solar technology, software, and
digitization. Established in 1896, AFK has been a proud producer of renewable
hydro power for more than 100 years. The company is headquartered in Arendal,
Norway and listed at the Oslo Stock Exchange.
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This information is considered to be inside information pursuant to the EU
Market Abuse Regulation and is subject to the disclosure requirements pursuant
to section 5-12 of the Norwegian Securities Trading Act.
This stock exchange announcement was published by Lars Peder Fensli, CFO,
Arendals Fossekompani ASA, on 18 August 2023 at 08:00 CET.