12.11.2021

“One of our best quarterly results ever”

Arendals Fossekompani ASA reported revenues of NOK 1,302 million in the third quarter of 2021 – 72% higher than in the same quarter last year. The operating profit was NOK 120 million – 94% higher than in the same quarter last year. AFK will pay NOK 0.85 per share in dividend for the third quarter.

Ørjan Svanevik, CEO of Arendals Fossekompani.

“One of our best quarterly results ever. High electricity prices and an overall strong performance from all portfolio companies contributed to a solid result,” says Ørjan Svanevik, Chief Executive Officer of Arendals Fossekompani.

Arendals Fossekompani reported revenues of NOK 1,302 million (759) in the third quarter of 2021 and an operating profit of NOK 120 million (62). AFK will pay a quarterly dividend of NOK 0.85 per share, based on the company’s quarterly dividend policy.

SEGMENT DEVELOPMENTS
AFK Hydropower delivered both substantial revenues and a solid operating profit based on significantly higher electricity prices in the Nordics. The average price of electricity in price area NO2, in which AFK’s two hydropower plants are located, was 15 times higher than the average price in the corresponding quarter last year.

AFK Property booked the sales of the first phase of the property development project Bryggebyen in Arendal, totaling NOK 428 million, in the quarter.

Based on a successful turnaround in 2020, portfolio company EFD Induction reports solid top-line growth and strong operating profits for the fourth consecutive quarter.

Tekna increased additive manufacturing production capacity in the third quarter amid strong global demand and accelerating sales in Europe. An additional atomizer began to operate in Canada. Combined with productivity improvements, production capacity will have increased by 25% at the end of the quarter.

Volue’s annual recurring revenues (ARR) business is on track delivering strong financial performance in the quarter. New SaaS business contributed strongly with a growth of 72% from third quarter last year, confirming steady progress of the ongoing SaaS transformation.

NSSLGlobal delivered yet another strong operational performance during the third quarter.

“All our companies operate within attractive global megatrends. The AFK portfolio comprises renewable energy, and technology which enable clients to reduce emissions and slow global warming. Portfolio companies are diversified with deliveries to industries such as aerospace, satellites, big data, industrial induction, 3D printing, batteries, ammonia, wind power and carbon-free mobility,” says Svanevik.

CORPORATE DEVELOPMENTS
In the third quarter, Arendals Fossekompani closed the sale of Cogen Energia Espana.

“Selling Cogen is a part of a strategic decision to exit all fossil positions. Following the sale, CO2-emissions in the AFK Group are reduced by 98%,” says Svanevik.

Arendals Fossekompani’s financial position remains solid. The company’s net cash position as of 30 September amounted to NOK 909 million. In addition, the company has undrawn credit facilities of NOK 2,000 million, securing net available liquidity of NOK 2,909 million as per end of the quarter.

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Ørjan Svanevik and Lars Peder Fensli, Chief Financial Officer, will host a presentation of the third quarter financial results 2021 at Hotel Continental in Oslo at 09:00 CET Friday 12 November 2021. Link to webcast: https://channel.royalcast.com/landingpage/hegnarmedia/20211112_5/ Questions can be submitted during the webcast. The presentation is scheduled to conclude at 09:45 CET.