(Arendal, 13 November 2020) Arendals Fossekompani (OSE:AFK) reported revenues of
NOK 876 million in the third quarter of 2020. An operating profit of NOK 68
million is 28 percent higher than in the same quarter of 2019. 

"In the midst of a pandemic and a period of record-low energy prices, Arendals
Fossekompani is pleased to report a solid third quarter, although there is
continued market uncertainty," says Ørjan Svanevik, Chief Executive Officer at
AFK.

Based on the third quarter results, and a very strong balance sheet, Arendals
Fossekompani will pay 16 kroner per share in quarterly dividend in November.

Third quarter revenues of NOK 876 million are down from NOK 1.077 million in
2019, mainly due to lower energy prices and the termination of an unprofitable
Cogen Energia customer relationship, which generated an annual turnover of NOK
600 million.

Green-tech company Volue, which was successfully listed on Merkur Market in
October, reported revenues of NOK 209 million (2019: 189) and an operating
profit of NOK 23 million (15) in the quarter.

"We are pleased to see that our portfolio companies are performing well. Volue,
NSSLGlobal and EFD Induction had a strong third quarter, and both Tekna and
Cogen Energia greatly improved the third quarter results in 2020 compared to
2019," says Svanevik.

The financial result of the parent company, which includes AFK Hydro Power, was
again impeded by exceptionally low energy prices. In periods with negative or
close-to-zero prices, AFK has temporarily shut down power production at its
hydro power plants outside of Arendal. Prices remain low but are expected to
rise as temperatures drop. 

"Energy prices are, of course, beyond our control. We focus on the development
of our portfolio companies and strategic transactions," says Svanevik.

Arendals Fossekompani recently signed an agreement to buy 71 percent of Kontali
Analyse, a leading data provider for aquaculture and fisheries. Kontali is the
first company in the portfolio of Alytic. Initially wholly owned by Arendals
Fossekompani, Alytic is set up to transform a wide range of data-driven
companies and is expected to rapidly expand its portfolio.

One share of Arendals Fossekompani is proposed split into 25 shares. An
extraordinary general meeting in November will make the final decision in a move
expected to increase the liquidity of the share.

"The Covid-19 pandemic continues to install uncertainly in the market, but AFK
has the financial strength to handle most unexpected events. AFK remains net
cash positive, with a substantial financial capacity," says Svanevik.

The official third quarter report is available in Norwegian only.

We encourage you to take a look at the attached presentation of portfolio
company Tekna.


For additional comments, please contact: 
Ørjan Svanevik, CEO of Arendals Fossekompani, +47 414 51 560


Arendals Fossekompani | www.arendalsfossekompani.no 
Arendals Fossekompani (AFK) is a green-tech investment company that owns energy-
and technology-related companies which enable the transition to a green economy.
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.