First quarter results: Strong performances across the portfolio

The decline in Group revenue was primarily driven by lower revenue in ENRX, due to softer market conditions. Operating profit more than doubled YoY, corresponding to a 17% profit margin. The strong result was driven by profitability improvements across the portfolio. 
 

“Q1 was marked by strong performances across all our portfolio companies. Volue continued to deliver on its growth strategy. ENRX operational focus is paying off. NSSLGlobal delivered an 18% operating margin and Tekna reported its third quarter of positive adjusted EBITDA and 19% revenue growth. Our hydropower business also delivered a strong result on the back of high-power prices,” says Benjamin Golding, Chief Executive Officer at Arendals Fossekompani. 
 

 
Portfolio highlights 
 

Volue: Continued broad based growth 
 

Total revenue in Q1 amounted to NOK 402 million (343 million), corresponding to a growth rate of 17% YoY (19% growth in recurring revenue). The strong market expansion combined with Volue’s scalable business model resulted in a solid margin uplift with adjusted cash EBITDA of NOK 69 million (42 million), corresponding to an adjusted cash EBITDA margin of 17% (12%). The acquisitions of Optimeering and dispoEnergy in the quarter enhanced Volue's trading and optimisation capabilities with real-time forecasting and cloud-native scheduling. 
 

ENRX: Focused on core, improved profitability 
 

The strategic milestone this quarter was the completion of the Charge sale. With 75% of Charge sold, ENRX is now fully focused on the Heat business. Operating revenue in Q1 amounted to EUR 30.4 million (37.3 million). The revenue decline was due to lower activity levels across all regions. Operating profit improved to EUR 2.0 million (0.3 million), supported by cost reduction initiatives coming through and the absence of operating losses from the former Charge division. 
 

NSSLGlobal: Higher activity drives margin expansion 
 

Revenue for Q1 was GBP 24.7 million (21.7 million). The YoY increase was primarily driven by higher airtime traffic and the completion of larger-value projects. Operating profit in the quarter was GBP 4.8 million (3.1 million) corresponding to an operating margin of 18% driven by higher gross margins from increased airtime, equipment and project invoicing. 
 

Tekna: Third consecutive adjusted EBITDA-positive quarter 
 

Operating revenue amounted to CAD 10.0 million (8.4 million). The YoY increase of 19% was driven by higher activity in Materials, while Systems revenue was stable year-over-year. Adjusted EBITDA amounted to CAD 0.2 million (-0.8 million). Materials order intake in the quarter amounted to CAD 7.4 million, including a CAD 1.5 million order from a tier-1 US defence customer. Cash flow from operating activities improved to CAD 3.4 million (-4.4 million).  
 

AFK Vannkraft: Higher prices offset lower production 
 

Power production in Q1 was 141.6 GWh (157.6 GWh) while the average price in the NO2 price area was 103.4 EUR/MWh (66.5 EUR/MWh) driven by lower total reservoir levels and higher gas prices due to the ongoing situation in the Middle East. As a result, revenue increased by 28% YoY and operating profit ended at NOK 131 million (93 million), corresponding to an operating margin of 81%.  
 

Strong balance sheet 
 

Arendals Fossekompani Parent company's financial position remains solid. Available cash at the end of the quarter amounted to NOK 568 million. In addition, the Parent company has undrawn credit facilities of NOK 2121 million, securing available liquidity of approximately NOK 2689 million. Net interest-bearing debt (NIBD), excluding shareholder loans, was NOK 167 million at the end of the quarter. 
 

"We remain committed to capital discipline. Our strong balance sheet gives us the flexibility to support our existing portfolio and capture opportunities as they become actionable," says Golding. 
 

Outlook 
 

Arendals Fossekompani Group revenue in 2026 is expected to be in line with 2025. Operating profit is expected to be significantly higher in 2026. 

“Our focus is on driving operational value creation in our portfolio companies and capturing structural opportunities both at parent- and portfolio company levelss.” says Golding.