Arendals Fossekompani

Earnings Release • May 6, 2021

AFK: First quarter financial results

AFK: First quarter financial results

(Arendal, 6 May 2021) Arendals Fossekompani (OSE:AFK) reported revenues of NOK 1.000 million in the first quarter of 2021. The operating profit of NOK 83 million is more than doubled compared to the same quarter last year.

“All in all, an excellent quarter. We are very pleased with the performance of all our portfolio companies,” says Ørjan Svanevik, Chief Executive Officer of Arendals Fossekompani.

AFK increased operating profit from NOK 34 million to NOK 83 million, and earnings before tax from NOK -8 million to NOK 79 million compared to the same quarter previous year.

All portfolio companies reported strong earnings in the period. AFK also completed several strategic actions in the quarter, including the divestment of 11.8% of the share capital in Volue AS for total gross proceeds of NOK 991 million, issuance of NOK 500 million in unsecured green bonds, divestment of the shareholdings in Victoria Eiendom and Eiendomsspar for total gross proceeds of NOK 829 million, and listing of Tekna Holding AS on Euronext Growth with a private placement raising close to NOK 700 million.

Volue and Tekna delivered particularly solid revenue growth in the quarter. Tekna reports 83% revenue growth year-on-year, mainly driven by new customers and increased powder sales, a trend which is accelerating. Volue continued the positive development and reported 16% growth in recurring revenue and 49% in SaaS revenues from the corresponding quarter the previous year. With this, Volue is well on track with regards to its 2021 and 2025 targets and ambitions.

As a result of increased electricity prices, AFK Hydropower contributed with both substantial revenues and a solid operating profit in the quarter. The average price of electricity in Price Area NO2 was NOK 0,469/kWh in the first quarter, almost five times higher than the average spot prices in 2020. Revenues from AFK Hydropower came in at NOK 75 million (27 million) with operating profit at NOK 54 million (7 million). Total revenues were higher in Q1 2021 than in the entire year of 2020.

Combining a quarterly dividend and an extraordinary dividend, Arendals Fossekompani will pay its shareholders NOK 30 per share in May.