Second quarter financial results

Arendals Fossekompani reported revenues of NOK 1,404 million (1,062 million) and an operating profit of NOK 148 million (70 million) in the second quarter of 2023. Ordinary profit after tax, but before non-controlling interests, totaled NOK 41 million (23 million). Arendals Fossekompani will pay a dividend of NOK 1.00 per share for the quarter.

Benjamin Golding

“We are pleased to report yet another good quarter and our best half-year operating result ever,” says Benjamin Golding, Chief Executive Officer at Arendals Fossekompani.

After two quarters, total revenues amount to NOK 2,810 million (2,113 million) with an operating profit of NOK 350 million (219 million).

“Operating profit in the second quarter was driven by increased production of hydropower and strong results from key portfolio companies Volue, NSSLGlobal and ENRX, in addition to improved results in Tekna,” says Golding.


A lower spot price for electricity in the NO2 price area was offset by higher production, lifting revenues from hydropower production to NOK 127 million (82 million) and operating profit to NOK 107 million (68 million).

Volue generated solid growth rates during the second quarter, with total operating revenues amounting to NOK 375 million (NOK 298 million). Recurring revenues constituted 62% of total revenues. Adjusted EBITDA totaled NOK 63 million (44 million), equal to an adjusted EBITDA margin of 17% (15%). In the second quarter, Volue made its biggest acquisition to date in the shape of Enerim Oy's Energy Market Services division. Through the acquisition, Volue has created the undisputed Nordic market leader in the space of Portfolio-Management-as-a-Service.

Building on a strong first quarter, Tekna increased revenues by another 17% in the second quarter. This represents 45% growth compared to the same quarter last year. Total revenues came in at CAD 11.0 million (CAD 7.6 million). Adjusted EBITDA was CAD -0.6 million, an improvement of CAD 2.6 million compared to the second quarter last year. Tekna continues to experience strong demand for its advanced materials and systems.

Total operating revenues for ENRX amounted to EUR 37 million (EUR 31 million), a 20% increase from the same quarter in 2022. The company showed solid growth in all geographical regions. EBIT for the quarter ended at EUR 0.9 million (0.0 million) and was negatively impacted by additional restructuring costs of EUR 1.5 million related to ENRX’s German operations. ENRX was awarded an EUR 12.7 million contract to deliver a dynamic wireless charging system that will allow vehicles to charge while driving on a US highway.

NSSLGlobal reported continued strong sales and operating profit as well as solid order intake. Revenues in the second quarter were GBP 23.0 million (GBP 23.9 million) and operating profit ended at GBP 4.7 million (GBP 6.3 million), corresponding to an operating margin of 20% (26%). NSSLGlobal’s sales and pipeline continues to be strong across both governmental and maritime sectors.

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

Arendals Fossekompani’s financial position remains solid. The company’s available cash at 30 June amounted to NOK 1,062 million. In addition, the company has undrawn credit facilities of NOK 1,492 million, securing available liquidity of NOK 2,554 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.