06.05.2022

First quarter financial results

Arendals Fossekompani ASA (Arendals Fossekompani, OSE:AFK) reported revenues of NOK 1,052 million in the first quarter of 2022 (869) and an operating profit of NOK 149 million, up from NOK 78 million in the same quarter in 2021. Arendals Fossekompani will pay dividend of NOK 0.95 per share for the first quarter 2022.

“We are proud to deliver one of the best quarterly results in our group’s 126-year history, leveraging on our heritage of producing renewable energy and building industrial companies with unique technology and competencies,” says Ørjan Svanevik, Chief Executive Officer of Arendals Fossekompani.

Arendals Fossekompani reported revenues of NOK 1,052 million (869) in the first quarter of 2022. The operating profit of NOK 149 million (78) was driven mainly by significantly higher electricity prices, but also strong operational performance, compared to the same quarter in 2021.

AFK will pay a quarterly dividend of NOK 0.95 per share, based on the company’s quarterly dividend policy.

SEGMENT DEVELOPMENTS

AFK Hydropower delivered substantial revenues and a solid operating profit based on significantly higher electricity prices in the Nordics. The average price of electricity in price area NO2, where AFK’s two hydropower plants are located, was more than three times higher than the average price in the corresponding quarter last year.

Volue continues its transformation towards recurring revenues and Software-as-a-Service. SaaS revenues were NOK 66 million in the quarter, an increase of 40 percent compared to the first quarter of 2021. Recurring revenue grew by 13%.

Tekna experienced a growth of 5% in Materials revenue. Growth was limited by production capacity, which should increase 70% by year end. Tekna’s order intake for Materials, its main revenue generating business segment, amounted to CAD 6.1 million, representing an increase of 69 per cent when compared to the first quarter of 2021. Tekna aims to uplist to the Oslo Stock Exchange in 2022.

EFD Induction reported an increase in total operating revenues of 11% to NOK 296 million in the first quarter (266 million). Operating profit (EBIT) was NOK 12.9 million (2.7 million). The order intake continued its positive trajectory, driven by new orders in all regions.

NSSLGlobal reports strong sales and operating profit in the quarter, as well as a solid order intake. NSSLGlobal’s long term backlog provides stable outlook going forward.

“Our companies are well-positioned within attractive high growth megatrends,  supporting customers and society in reaching transformational development goals. Combined with strong underlying results, a robust balance sheet and attractive development projects, the value creation platform provides a positive outlook for Arendals Fossekompani,” says Svanevik.

CORPORATE DEVELOPMENTS
Arendals Fossekompani’s financial position remains solid. The company’s cash position as of 31 March amounted to NOK 1,584 million. In addition, the company has undrawn credit facilities of NOK 2,000 million, securing gross available liquidity of NOK 3,584 million as per end of the quarter.

PRESENTATION OF Q1 RESULTS
Ørjan Svanevik and Lars Peder Fensli, Chief Financial Officer, will host a presentation of the first quarter financial results 2022 at Hotel Continental in Oslo at 09:00 CET Friday 6 May 2022.

Link to webcast: https://channel.royalcast.com/landingpage/hegnarmedia/20220506_6/

Questions can be submitted during the webcast. The presentation is scheduled to conclude at 09:45 CET.

Read the full Q1 2022 report here.