First quarter financial results

(Arendal, 5 May 2023) Arendals Fossekompani ASA (OSE:AFK) reported revenues of NOK 1,405 million (1,052 million) and an operating profit of NOK 202 million (149 million) in the first quarter of 2023. Arendals Fossekompani will pay a dividend of NOK 1.00 per share for the quarter.


“This is the best quarterly result recorded in our 127-year long history,” says Lars Peder Fensli, Chief Financial Officer at Arendals Fossekompani.

Consolidated earnings before tax came in at NOK 238 million (134 million). Ordinary profit after tax, but before non-controlling interests, totaled NOK 71 million (36 million).

“Operating profit in the quarter was driven by increased production of hydropower and stronger results from key portfolio companies ENRX, Volue and NSSLGlobal, in addition to a record-breaking quarter from Tekna,” says Fensli.


AFK Vannkraft produced 167 GWh (122 GWh) electricity from its hydropower plants during the quarter, generating substantial revenues and operating profit. Electricity prices were higher than the season average, but lower than in the first quarter of 2022. The average spot price in the NO2 price area was EUR 108/MWh (EUR 151/MWh), lifting revenues for AFK Vannkraft to NOK 190 million (169 million) and operating profit to NOK 161 million (153 million).

Volue continues its transformation towards recurring revenues and Software-as-a-Service (SaaS). Volue generated solid growth rates during the quarter. SaaS revenues were NOK 88 million in the quarter, an increase of 34% compared to the first quarter of 2022, representing 26% of total revenues. Revenues and other income in the quarter amounted to NOK 339 million (286 million). Adjusted EBITDA in the quarter totaled NOK 55 million (45 million), corresponding to an adjusted EBITDA-margin of 16% (16%).

In a record-breaking quarter, Tekna reported 44% revenue growth compared to the corresponding quarter previous year. Total revenue came in at CAD 9.4, the highest quarterly revenues ever recorded for Tekna. Both Systems (+53%) and Advanced Materials (+40%) contributed to the revenue growth.

ENRX’ total operating revenues increased by 40% year-over-year to EUR 42 million. Revenue growth was driven by a higher activity level within the Heat division, as well as a smaller contribution from the Charge division. The company experienced solid growth in all geographical regions. March isolated was particularly strong, representing an all-time high in sales revenues.

NSSLGlobal reported quarterly revenues of GBP 23.8 million, which is 4.9 million higher than last year. Operating profit in the quarter was GBP 4.3 million, compared to GBP 3.2 million in the same quarter last year.

“Our companies are positioned within high growth global industry verticals, serving customers in reaching transformational business goals. The value creation platform provides a positive outlook for Arendals Fossekompani,” says Fensli.


Arendals Fossekompani’s financial position remains solid. The company’s available cash as of 31 March amounted to NOK 1,074 million. In addition, the company has undrawn credit facilities of NOK 1,925 million, securing available liquidity of NOK 2,999 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.

Read the full report here: Interim Report Q1 2023