Solid fourth quarter from Arendals Fossekompani

Arendals Fossekompani reported revenues of NOK 1.014 million in the fourth quarter of 2020. An operating profit of NOK 71 million is 4.5 per cent higher than in the same quarter of 2019.

“Arendals Fossekompani is pleased to report a solid fourth quarter, which also included a realized gain of NOK 440 million from sale of shares, booked directly to the equity” says Ørjan Svanevik, Chief Executive Officer at AFK.

Based on the fourth quarter results, and a very strong balance sheet, Arendals Fossekompani will pay 0.7 kroner per share in quarterly dividend in February.

Fourth quarter revenues of NOK 1.014 million are down from NOK 1.198 million in 2019, mainly due to lower energy prices and the termination of an unprofitable Cogen Energia customer relationship, which generated an annual turnover of NOK 600 million.

VIDEO: Q4 in 150 seconds

Green-tech company Volue reported revenues of NOK 240 million (2019: 206) and an operating profit of NOK 12 million (4) in the quarter.

“We are pleased to see that all our portfolio companies are performing well. Volue, NSSLGlobal and EFD Induction had a strong fourth quarter, and both Tekna and Cogen Energia greatly improved the fourth quarter results compared to 2019,” says Svanevik.

The financial result of the parent company, which includes AFK Hydropower, was again impeded by exceptionally low energy prices. However, prices spiked in December and are expected to stabilize at a significantly higher level in 2021 compared with 2020.

A busy fourth quarter saw Volue successfully listed on Euronext Growth, the establishment of growth company Alytic, the acquisition of Kontali Analyse, an investment in battery producer Beyonder and the split of the AFK share (1:25). Trading volume of the AFK share quadrupled in the fourth quarter compared to the adjusted 2019 quarterly average.

“We are continuously looking for new opportunities. AFK remains net cash positive, with a substantial financial capacity, which increased by NOK 440 million during the quarter,” says Svanevik.

FULL REPORT: Q4 2020 Report Arendals Fossekompani

NSSLGLOBAL: Presentation of portfolio company NSSLGlobal