(Arendal ,9 February 2024 )Arendals Fossekompani ASA (OSE:AFK) reported revenues ofNOK 1,402 million (1,360 million) and an operating profit ofNOK 31 million (83 million) in the fourth quarter of 2023. Ordinary profit after tax, but before non-controlling interests, totaledNOK -77 million (-123 million).Arendals Fossekompani will pay a dividend ofNOK 1.00 per share for the quarter. "An increase in operating revenue was driven by key portfolio companiesVolue , ENRX, andNSSLGlobal , and another greatly improved quarter fromTekna . A significantly lower price of electricity had a negative effect on the operating result, as did a loss in Ampwell," saysBenjamin Golding , Chief Executive Officer atArendals Fossekompani . In addition, non-recurring items inVolue andTekna reduced operating profit by a total ofNOK 81 million in the quarter. Both electricity prices and hydropower production were lower in the fourth quarter, compared to the corresponding quarter in 2022. Electricity prices in the NO2 price area averagedEUR 70 /MWh (165/MWh), while power generation in the quarter was 126 GWh (135 GWh). Quarterly revenues and operating profit from hydropower wereNOK 117 million (232 million) andNOK 87 million (202 million), respectively. For the full year,AFK Group revenue amounted toNOK 5,436 million (4,587 million) with an operating profit ofNOK 440 million (429 million). "2023 was a year with underlying strong performance in the portfolio as a whole," says Golding. SEGMENT DEVELOPMENTSVolue continued to grow in the fourth quarter. Total operating revenues amounted toNOK 413 million (341 million), corresponding to a growth rate of 21% when comparing to the fourth quarter of 2022. SaaS revenues increased by 35% and now make up 26% of total revenues. Adjusted EBITDA in the quarter totaledNOK 86 million (64 million), corresponding to an adjusted EBITDA of 21% (19%).Tekna reports revenues ofCAD 11.4 million (6.8), an increase of 66% from the same quarter the previous year, and the highest quarterly revenue ever recorded forTekna . Adjusted EBITDA wasCAD -0.3 million (-2.9 million).Tekna continues to experience strong demand for its advanced materials and systems. Total order backlog at the end of the quarter wasCAD 24.0 million , supported byCAD 11.2 million order intake in the quarter, up from 10.4 million in the third quarter. ENRX reports operating revenues ofEUR 41.9 million (38 million), a 12% increase from the same quarter in 2022. Revenue growth was driven by higher activity levels within the Heat division. EBIT for the fourth quarter ended atEUR 3.3 million , up fromEUR -2.9 million in the same quarter the previous year. The current order backlog ofEUR 166.5 million creates a strong foundation for continued profitable growth throughout 2024.NSSLGlobal reports continued strong sales and operating profit as well as a solid order intake. Revenue in the fourth quarter came in atGBP 23.3 million (23.1 million) and the operating profit wasGBP 3.4 million (1.6 million), corresponding to an operating margin of 15% (7%). During the quarter,NSSLGlobal won new business opportunities and contract extensions worthGBP 13 million . "Our companies are well positioned within high-growth global industry verticals with a positive long-term outlook. The portfolio is diversified, with both stable cash flow generating assets and attractive growth opportunities," says Golding. CORPORATE DEVELOPMENTSArendals Fossekompani's financial position remains solid. The company's available cash on 31 December amounted toNOK 1,064 million . In addition, the company has undrawn credit facilities ofNOK 1,132 million , securing available liquidity ofNOK 2,195 million as per end of the quarter. DIVIDEND AFK will pay a quarterly dividend ofNOK 1.00 per share, based on the company's quarterly dividend policy. ENDS - - - - - For 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. AFK operates globally in several future-oriented industries, including 3D printing, wireless charging, algo trading, satellite communication 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 inArendal ,Norway and listed at theOslo 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. Thisstock exchange announcement was published by Lars Peder Fensli, CFO,Arendals Fossekompani ASA , on9 February 2024 at08:00 CET .
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