(Arendal ,16 May 2024 )Arendals Fossekompani ASA (OSE:AFK) reported revenues ofNOK 1,435 million (1,405 million) and an operating profit ofNOK 111 million (202 million) in the first quarter of 2024. Ordinary profit after tax, but before non-controlling interests, totaledNOK 8 million (71 million).Arendals Fossekompani will pay a dividend ofNOK 1.00 per share for the quarter. "Total revenue increased by 2% compared to the same quarter the previous year. Strong growth in key portfolio companiesVolue and ENRX was largely offset by lower electricity prices impacting revenue generation in AFK's Hydropower business, and by low sales in Ampwell," saysBenjamin Golding , Chief Executive Officer atArendals Fossekompani . The reduced operating profit compared to the first quarter in 2023 was mainly driven by lower electricity prices generating lower revenues and profit from hydropower production, in addition to a higher operating loss in Ampwell. Operating in international markets, theArendals Fossekompani Group is exposed to currency fluctuations. Revenue in ENRX,NSSLGlobal andTekna was positively affected by a weakened NOK compared to the first quarter of 2023. Electricity prices in the quarter were substantially lower from the same period last year, with the NO2 price area averagingEUR 64.5 /MWh (EUR 108 MWh) in the quarter. Power generation was comparable to the same period last year of 161 GWh (167 GWh). Lower prices reduced quarterly revenues and operating profit toNOK 122 million (190 million) andNOK 95 million (161 million), respectively. Following high activity levels in all portfolio companies,AFK Group revenues are expected to be higher in 2024 than in 2023. Operating profit is expected to be lower than in 2023, driven by expected lower electricity prices, as well as reduced margins inNSSLGlobal and increased operational losses for Alytic and Ampwell. "Q1 has featured significant orders, important deliveries and a steady performance across several portfolio companies," says Golding. SEGMENT DEVELOPMENTSVolue continues to grow in the first quarter. Total operating revenue in the first quarter amounted toNOK 400 million (340 million), corresponding to a growth rate of 18% when comparing to the first quarter of 2023. SaaS revenues wereNOK 126 million in the quarter, an increase of 42% compared to the first quarter of 2023, representing 31% of total revenue. ARR grew at a rate of 27%, constituting 71% of total revenue in the quarter. Adjusted EBITDA in the quarter wasNOK 83 million (55 million), corresponding to an adjusted EBITDA margin of 21% (16%).NSSLGlobal reports continued strong sales and operating profit as well as solid order intake. Revenue in the first quarter wasGBP 21.8 million (23.9 million) and operating profit ended atGBP 4.5 million (4.1 million), corresponding to an operating margin of 20% (18%).NSSLGlobal wonGBP 91.5 million of new business opportunities and/or contract extensions/upgrades during the quarter, of which the majority was related to a 5-year Commercial Satellite Communication contract with an option for a further 2 years.Tekna reports revenues ofCAD 8.7 million (9.4 million). The 8% decline from the same period previous year was partly driven lower investments in new 3D-printing machines, as well as lower Systems sales, which are volatile in nature. Adjusted EBITDA amounted toCAD -2.6 million (-1.2 million) driven by lower top line, as well as one-off items related to a joint venture inFrance . Total order backlog at the end of the quarter wasCAD 22.9 million (26.4 million), driven by reduction in the Systems segment. Order backlog for Advanced Materials was up 17% since the last quarter. The pipeline for Systems projects for the remainder of the year is strong, andTekna continues to experience strong demand for its advanced materials, despite a current slow-down in the 3D-printing machine segment. ENRX reports a total operating revenue in the first quarter ofEUR 46.2 million (41.9 million), a 10% increase from the same quarter in 2023. Revenue growth was driven by a higher activity level within the Heat division, with solid growth inEurope andNorth America . EBIT for the quarter ended atEUR 4.0 million (3.4 million), corresponding to a margin of 8.6%. Total order intake for the quarter ended atEUR 35.1 million (41.1 million), and the backlog per quarter end wasEUR 74.3 million (94 million). "Our companies are well positioned within high-growth global industry verticals that have a positive long-term outlook. The portfolio is diversified, with both stable cash flow generating assets and attractive growth opportunities," says Golding. FINANCIAL POSITIONArendals Fossekompani's financial position remains solid. The company's available cash on 31 March amounted toNOK 1,064 million . In addition, the company has undrawn credit facilities ofNOK 903 million , securing available liquidity ofNOK 1,967 million as per end of the quarter. DIVIDEND OnMay 15th ,Arendals Fossekompani's Board of Directors decided to pay an ordinary cash dividend ofNOK 1.00 per share for the first quarter of 2024. The dividend is set to be paid on31 May 2024 . ENDS - - - - - For inquiries or additional comments, please contact:Benjamin Golding , Chief Executive Officer: +47 974 04 496Hanne Watts , VP Communications & Sustainability: +47 974 04 496Arendals Fossekompani | www.arendalsfossekompani.noArendals Fossekompani (AFK) is a long-term investment company that owns energy and technology-related companies which enable the energy transition and develop next generation industrial technologies.Arendals Fossekompani operates globally in several forward-thinking industries, such as B2B software and analytics, satellite communications, industrial 3D printing, battery and induction technology. Established in 1896,Arendals Fossekompani has been a proud producer of renewable hydro power for more than 100 years. The company is headquartered inArendal ,Norway has been listed at theOslo Stock Exchange since 1913. - - - - - This information is considered 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. Thisstock exchange announcement was published by Lars Peder Fensli, CFO,Arendals Fossekompani ASA , on16 May 2024 at08:00 CET .
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