20.08.2021

Second quarter financial results

Arendals Fossekompani reported revenues of NOK 866 million in the second quarter of 2021, up 16% from the same quarter last year and an operating profit of NOK 77 million (10).

CFO Lars Peder Fensli (left) and CEO Ørjan Svanevik at Arendals Fossekompani.

The company will pay NOK 0.80 per share for the second quarter 2021, consistent with the quarterly dividend policy, in addition to an in-kind dividend of shares in Volue ASA.

“We are pleased to see an overall strong performance from all portfolio companies in a quarter characterized by high electricity prices and the cyber-attack on Volue, which was well handled by the company,” says Ørjan Svanevik, Chief Executive Officer of Arendals Fossekompani.

Arendals Fossekompani reported revenues of NOK 866 million in the second quarter of 2021 (748) and an operating profit of NOK 77 million (10). The EBIT was impacted by the one-off cost of NOK 40 million related to the Volue cyber-attack. AFK will pay a quarterly dividend of NOK 0.80 per share, following the company quarterly dividend policy, in addition to an in-kind dividend of 1 share of Volue per 10 AFK shares.

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 was more than 10 times higher than the average price in the corresponding quarter last year.

Tekna continues to grow, posting 95% top-line growth year-over-year in the second quarter in local currency, mainly driven by new customers and increased powder sales, a trend which is accelerating.

Volue continued the revenue growth in the period, despite the cyber-attack, and grew the recurring revenues by 17 %, hereof SaaS-revenues by 51 %, compared to the same quarter last year.

NSSLGlobal and EFD Induction also delivered strong operational performances in the quarter.

Corporate developments
Arendals Fossekompani completed several strategic transactions during the quarter, such as the listing of Volue ASA on the main list of Oslo Børs, and the establishment of partnerships with Ferd AS within offshore wind, and with Grieg Maritime Group AS within green ammonia. After the closing of the quarter, the company divested Cogen Energia Espana.

“The sale of 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%,” Svanevik continues.

Arendals Fossekompani’s financial position remains solid. The company’s net cash position as of 30 June amounted to NOK 762 million. In addition, the company has undrawn credit facilities of NOK 2,000 million, securing net available liquidity of NOK 2,762 million as per end of the quarter.

“Direct yield on the AFK share is one of our guiding priorities. Our focus is to maintain a very strong performance building on the 26% annual performance since 2000, placing AFK in the top class among global investment companies,” says Svanevik.

Webcast
Ørjan Svanevik and Lars Peder Fensli, Chief Financial Officer, will host a presentation of the second quarter financial results 2021 at Hotel Continental in Oslo at 09:00 CET Friday 20 August 2021. Questions can be submitted during the webcast. The presentation is scheduled to conclude at 09:45 CET.

Link to webcast.