Third quarter financial results

Total revenue for AFK Group increased by 5% compared to Q3 2023, largely driven by strong growth in NSSLGlobal. The reduction in operating profit of NOK 5 million compared to the third quarter 2023 was due to cost increases in ENRX and lower power prices.
 

In October 2024, Arendals Fossekompani, Advent International and Generation Investment Management completed the acquisition of Volue. The company was subsequently delisted.
 

“Arendals Fossekompani, Advent and Generation bring highly complementary expertise to this long-term partnership, ensuring continuity and preservation of established company values, while simultaneously integrating fresh and innovative perspectives. The company is well positioned for further growth, both organically and through acquisitions,” says Benjamin Golding, Chief Executive Officer at Arendals Fossekompani.  

 

The joint strategic ownership is expected to significantly accelerate Volue’s growth and value creation, thus benefiting Arendals Fossekompani's shareholders through the continued 40% stake in Volue. Additionally, the transaction, priced at NOK 42 per share, resulted in net cash proceeds of NOK 1 billion after the close of the quarter.

 

Operating in international markets, Arendals Fossekompani Group is naturally exposed to currency fluctuations. Revenue growth in ENRX, NSSLGlobal and Tekna was positively affected by the weakened NOK compared to Q3 2023. 

SEGMENT DEVELOPMENTS
Volue reported total operating revenue of NOK 382 million (334 million) in the third quarter, up 14% compared to Q3 2023. SaaS revenue reached NOK 145 million in the quarter, an increase of 38% compared to the third quarter of 2023, representing 38% of total revenue. Annual recurring revenue (ARR) constituted 76% of total revenues, reaching NOK 289 million in the quarter. Consequently, ARR grew at a rate of 14% compared to Q3 2023. Adjusted EBITDA in the quarter totaled NOK 83 million (63 million), corresponding to an adjusted EBITDA of 22% (19%). 

NSSLGlobal grew revenue by 10% in the third quarter, compared to Q3 2023. Operating margin amounted to 18%, up from 16% in Q3 2023. NSSLGlobal won GBP 9.1 million in contracts across its government and maritime sectors, of which GBP 8.7 million represented new business opportunities including a significant governmental Satellite Communication contract. 
 

Tekna reported a total revenue of CAD 7.6 million (9.1 million) for the quarter, down 16% from Q3 2023. The decline was mainly due to a significant drop in Systems revenue, which decreased by 43%. Advanced Materials revenue was up 5% in the period. Despite the decline in revenue, the Adjusted EBITDA improved to CAD -1.4 million (-1.7 million). The order intake totaled CAD 5.8 million in the period and the backlog was CAD 16.5 million at the end of the quarter.

ENRX reported total operating revenue of EUR 35.5 million, down 3% from Q3 2023. The company saw growth in both North American and Asian regions in the quarter, while lower sales in Europe lead to decreased revenue compared to Q3 2023.  EBIT for the quarter was EUR 2.1 million (2.5 million).

AFK Vannkraft reported hydropower production in Q3 2024 to be significantly higher than Q3 2023, totaling 148.1 GWh (115.1 GWh). Lower power prices in the NO2 region, driven by high reservoir levels, increased wind production, and decreased continental prices, resulted in an average price of EUR 37.8/MWh (58.1 EUR/MWh) for the quarter. 

FINANCIAL POSITION
Arendals Fossekompani’s financial position remains solid. The company’s available cash on 30 September amounted to NOK 198 million. In addition, the company has undrawn credit facilities of NOK 1,678 million, securing available liquidity of NOK 1,876 million per the end of the quarter. 

 

DIVIDEND
Arendals Fossekompani will pay a quarterly dividend of NOK 1.00 per share, based on the company’s quarterly dividend policy.

ENDS  

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For inquiries or additional comments, please contact:   

Benjamin Golding, Chief Executive Officer: +47 974 04 496  
Hanne Watts, VP Communications & Sustainability: +47 974 04 496
  

Arendals Fossekompani  

Arendals Fossekompani (AFK) is an industrial investment company that owns energy and technology-related companies which enable the energy transition and develop next generation industrial technologies. Arendals Fossekompani operates globally in several forward-thinking industries, such as B2B software and analytics, satellite communications, induction technology and industrial 3D printing. Established in 1896, Arendals Fossekompani has been a proud producer of renewable hydropower for more than 100 years. The company is headquartered in Arendal, Norway and has been listed at the Oslo Stock Exchange since 1913. For more information, please visit: https://arendalsfossekompani.no/en 

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This information is considered 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 8 November 2024 at 08:00 CET.