(Arendal, 19 August 2022) Arendals Fossekompani ASA (OSE:AFK) reported revenues of NOK 1,062 million (866 million) and an operating profit of NOK 70 million (77 million) in the second quarter of 2022. Arendals Fossekompani will pay a dividend of NOK 0.95 per share for the quarter.
Total first half-year operating revenues for the group amounted to NOK 2,113 million (1,735 million). Consolidated earnings before tax came in at NOK 86 million (61 million) for the quarter and as of 30 June at NOK 220 million (137 million).
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“We are pleased to deliver a strong result in a quarter affected by significantly higher electricity prices offset by extraordinary costs related to three strategic acquisitions,” says Ørjan Svanevik, Chief Executive Officer of Arendals Fossekompani.
Despite lower production AFK Hydropower delivered substantial revenue and operating profit. In addition, Volue and NSSLGlobal both delivered strong operational performance. The operating profit in the quarter was negatively affected by transaction costs of NOK 11 million and negative operating profit from new acquisitions of NOK 17 million.
The AFK Group made three acquisitions in the second quarter:
• The wireless charging solution provider IPT Technology was acquired on 19 May, which led AFK to establish the Evolgy Group which initially consists of IPT Technology and portfolio company EFD Induction.
• On 7 April AFK acquired the German energy storage specialist, Commeo and formed the new company Ampwell. With Commeo as a key building block, Ampwell will build an eco-system for battery technology and a Battery-as-a- Service business model.
• On 28 April portfolio company Alytic acquired Factlines, a company offering digital solutions for securing responsible supply chains.
SEGMENT DEVELOPMENTS
Volue continues its transformation towards recurring revenues and Software-as-a-Service. SaaS revenues were NOK 68 million in the quarter, an increase of 29% compared to the first quarter of 2021. Recurring revenue constituted 62% of total revenues and reached NOK 184 million in the quarter, an increase of 17% from the second quarter of 2021.
Tekna’s materials order intake reached a record CAD 9.7 million in the second quarter, following strong demand for advanced materials. The backlog for Materials amounted to CAD 15.3 million at the end of the period, up 76 per cent from the same time last year. Recent orders confirm a long-awaited and desired development in the market, with larger orders and more long-term supply agreements.
Evolgy’s operating revenues increased by 10% year-on-year to NOK 311 million in the second quarter. Costs were negatively affected by the consolidation of IPT Technology. Operating profit fell to NOK 0 million (24 million), including a negative result of NOK 5 million from IPT Technology and one-time acquisition costs of NOK 5 million. Order intake has remained firm with new orders in all regions and segments, and the order backlog of EUR 107 million compares with EUR 98 million at the end of the first quarter.
NSSLGlobal reports strong sales and operating profit in the quarter, as well as a solid order intake. NSSLGlobal’s long-term backlog provides stable outlook going forward.
“Our companies are well-positioned within attractive high growth megatrends, supporting customers in reaching transformational development goals. Combined with strong underlying results, a robust balance sheet and continued high strategic execution drive, the value creation platform provides a positive outlook for Arendals Fossekompani,” says Svanevik.
CORPORATE DEVELOPMENTS
Arendals Fossekompani’s financial position remains solid. The company’s cash position as of 30 June amounted to NOK 1,043 million. In addition, the company has undrawn credit facilities of NOK 2,000 million, securing gross available liquidity of NOK 3,043 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 Q2 RESULTS
In a four-minute video presentation Ørjan Svanevik sums up the second quarter results and developments. Please find the video here: https://www.youtube.com/channel/UCg7KmLkdC579-ym6eE9cG5w
ENDS
For additional comments, please contact:
Ørjan Svanevik, CEO at Arendals Fossekompani: +47 414 51 560
Arendals Fossekompani | www.arendalsfossekompani.no
Arendals Fossekompani (AFK) is a long-term investment company that owns energy- and technology-related companies which enable the transition to energy security and next generation industrial technologies. AFK operates globally in a number of future-oriented industries, including 3D printing, wireless charging, algo trading, satellite services, battery- and solar technology, software, and digitization. Established in 1896, AFK has been a proud producer of renewable hydro power for more than 100 years. The company is headquartered in Arendal, Norway and listed at the Oslo Stock Exchange.
This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
This stock exchange announcement was published by Lars Peder Fensli, CFO, Arendals Fossekompani ASA, on 10 February 2022 at 07:00 CET.
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