20.08.2020

Solid Q2 from Arendals Fossekompani

Despite the effects of the Covid-19 pandemic, the portfolio companies of Arendals Fossekompani (AFK) delivered good results in the second quarter of 2020.

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

Both Volue and NSSLGlobal report revenue growth measured against the corresponding quarter last year.

The green-tech company, Volue, delivers its first quarterly result after it was established in March, and contributes MNOK 20 in profit. Volue recently signed an agreement with German utility giant EnBW, and is now a core supplier to the four largest energy producers in Germany.

“We are very pleased with the development in Volue, which also reports 15 percent growth in annual subscription revenues. We expect further growth and will consider a separate listing of Volue,” says Ørjan Svanevik, CEO of Arendals Fossekompani.

NSSLGlobal delivered good results and good sales in the second quarter. The company won four of five tenders it participated in, including a major contract with the Swedish Coast Guard, which is a new customer.

Tekna is, as the first company in the world, qualified to supply titanium and aluminum powder for 3D printing of aircraft parts to Boeing.

EFD Induction is hit by lower activity in the automotive industry, as a result of Covid-19-related shutdowns in Asia and Europe. The company has cut fixed costs by MNOK 100, with full effect from year-end, and has incurred a restructuring cost of MNOK 30 in the second quarter.

With the price of electricity close to zero, the result and expectations for 2020 for Arendals Fossekompani’s two hydropower plants are lowered, but the market expects a normalization of the electricity prices.

“In the midst of a global pandemic, and with historically low electricity prices, we improve our profit before tax by MNOK 39 compared with the first quarter. We are very pleased with that,” says Svanevik.

Turnover in the second quarter was NOK 815 million, with an operating profit of NOK 13 million. The fall in turnover is primarily due to low electricity prices, which has led to lower turnover for Cogen Energia and AFK’s energy producing unit. Turnover is also considerably lower due to the fact that Cogen Energia ended an unprofitable customer relationship at the beginning of this year. The contract resulted in a MNOK 600 turnover in 2019.

For the first time since the establishment of Arendals Fossekompani in 1896, the company will pay quarterly dividends in September.

“The general meeting earlier this year approved a transition from annual to quarterly dividends. We consider this to be a more appropriate model for both the company and the investors. The dividend of NOK 14 per share is based on the result in the second quarter and the company’s solid financial position,” says Svanevik.