Fourth quarter financial results

(Arendal, 9 February 2024) Arendals Fossekompani ASA (OSE:AFK) reported revenues of NOK 1,402 million (1,360 million) and an operating profit of NOK 31 million (83 million) in the fourth quarter of 2023. Ordinary profit after tax, but before non-controlling interests, totaled NOK -77 million (-123 million). Arendals Fossekompani will pay a dividend of NOK 1.00 per share for the quarter.


“An increase in operating revenue was driven by key portfolio companies Volue, ENRX, and NSSLGlobal, and another greatly improved quarter from Tekna. A significantly lower price of electricity had a negative effect on the operating result, as did a loss in Ampwell,” says Benjamin Golding, Chief Executive Officer at Arendals Fossekompani.

In addition, non-recurring items in Volue and Tekna reduced operating profit by a total of NOK 81 million in the quarter.

Both electricity prices and hydropower production were lower in the fourth quarter, compared to the corresponding quarter in 2022. Electricity prices in the NO2 price area averaged EUR 70/MWh (165/MWh), while power generation in the quarter was 126 GWh (135 GWh). Quarterly revenues and operating profit from hydropower were NOK 117 million (232 million) and NOK 87 million (202 million), respectively.

For the full year, AFK Group revenue amounted to NOK 5,436 million (4,587 million) with an operating profit of NOK 440 million (429 million).

“2023 was a year with strong underlying performance in the portfolio as a whole,” says Golding.


Volue continued to grow in the fourth quarter. Total operating revenues amounted to NOK 413 million (341 million), corresponding to a growth rate of 21% when comparing to the fourth quarter of 2022. SaaS revenues increased by 35% and now make up 26% of total revenues. Adjusted EBITDA in the quarter totaled NOK 86 million (64 million), corresponding to an adjusted EBITDA of 21 % (19 %).

Tekna reports revenues of CAD 11.4 million (6.8), an increase of 66% from the same quarter the previous year, and the highest quarterly revenue ever recorded for Tekna. Adjusted EBITDA was CAD -0.3 million (-2.9 million). Tekna continues to experience strong demand for its advanced materials and systems. Total order backlog at the end of the quarter was CAD 24.0 million, supported by CAD 11.2 million order intake in the quarter, up from 10.4 million in the third quarter.

ENRX reports operating revenues of EUR 41.9 million (38 million), a 12% increase from the same quarter in 2022. Revenue growth was driven by higher activity levels within the Heat division. EBIT for the fourth quarter ended at EUR 3.3 million, up from EUR -2.9 million in the same quarter the previous year.

NSSLGlobal reports continued strong sales and operating profit as well as a solid order intake. Revenue in the fourth quarter came in at GBP 23.3 million (23.1 million) and the operating profit was GBP 3.4 million (1.6 million), corresponding to an operating margin of 15% (7%). During the quarter, NSSLGlobal won new business opportunities and contract extensions worth GBP 13 million.

“Our companies are well positioned within high-growth global industry verticals with a positive long-term outlook. The portfolio is diversified, with both stable cash flow generating assets and attractive growth opportunities,” says Golding.


Arendals Fossekompani’s financial position remains solid. The company’s available cash on 31 December amounted to NOK 1,064 million. In addition, the company has undrawn credit facilities of NOK 1,132 million, securing available liquidity of NOK 2,195 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.