“We are pleased to deliver yet another solid quarter, driven by higher electricity prices and strong performance from portfolio companies Volue and NSSLGlobal,” says Ørjan Svanevik, Chief Executive Officer of Arendals Fossekompani.
Third quarter revenues ended at NOK 1,1114 million, down from NOK 1,302 million in the same quarter last year. Adjusted for a one-time booking of property sales amounting to NOK 429 million in Q3 2021, third quarter revenues in 2022 are up by 28% year-over-year.
Even though production of electricity was halved compared to the same quarter last year, AFK Hydropower still delivered substantial revenue and operating profit, as the average spot price reached record high levels during the third quarter.
“Since then, prices have come down. This is good news for consumers, as well as for our industrial companies. We are all hoping for a winter with energy prices at reasonable levels,” says Svanevik.
SEGMENT DEVELOPMENTS
Volue continues its transformation towards recurring revenues and Software-as-a-Service. SaaS revenues were NOK 70 million in the quarter, an increase of 27% compared to the third quarter of 2021. Recurring revenues constituted 62% of total revenues and reached NOK 181 million in the quarter, an increase of 19% from the third quarter of 2021.
Tekna reported 6% revenue growth in the third quarter compared to the corresponding quarter previous year. As expected, growth somewhat slowed down in advanced materials, which was marked by downtime while the machine park underwent a planned upgrade. Tekna continues to experience strong demand for its advanced materials. The backlog for Materials amounted to CAD 12.5 million at the end of the quarter, a 57% increase year-over-year.
Evolgy’s total operating revenues increased by 17% year-over-year to NOK 343 million. Operating profit of NOK 12 million was negatively affected by consolidation of IPT Technology. Order intake has remained firm with new orders in all regions and segments.
NSSLGlobal reports strong sales and operating profit, as well as a solid order intake. During the third quarter, NSSLGlobal was able to extend several large projects, as well as winning new business.
“Our companies are positioned within high growth global industry verticals, serving customers in reaching transformational business goals. With strong underlying results, a robust financial position and continued high execution drive, the value creation platform provides a positive outlook for Arendals Fossekompani,” Svanevik concludes.
CORPORATE DEVELOPMENTS
Arendals Fossekompani’s financial position remains solid. The company’s cash position as of 30 September amounted to NOK 1,116 million. In addition, the company has undrawn credit facilities of NOK 1,949 million, securing gross available liquidity of NOK 3,065 million as per end of the quarter.
DIVIDEND
AFK will pay a quarterly dividend of NOK 0.95 per share, based on the company’s quarterly dividend policy.
PRESENTATION OF Q3 RESULTS
In a video presentation, CEO Ørjan Svanevik sums up the third quarter results and developments. Please find the video here: https://www.youtube.com/watch?v=l4qME9xqVeE
For additional comments, please contact:
Ørjan Svanevik, CEO at Arendals Fossekompani: +47 414 51 560