(Arendal, 16 May 2024) Arendals Fossekompani ASA (OSE:AFK) reported revenues of
NOK 1,435 million (1,405 million) and an operating profit of NOK 111 million
(202 million) in the first quarter of 2024. Ordinary profit after tax, but
before non-controlling interests, totaled NOK 8 million (71 million). Arendals
Fossekompani will pay a dividend of NOK 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 companies Volue and ENRX was largely offset by
lower electricity prices impacting revenue generation in AFK's Hydropower
business, and by low sales in Ampwell," says Benjamin Golding, Chief Executive
Officer at Arendals 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, the Arendals Fossekompani Group is exposed
to currency fluctuations. Revenue in ENRX, NSSLGlobal and Tekna 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 averaging EUR 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 to NOK
122 million (190 million) and NOK 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 in NSSLGlobal 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 DEVELOPMENTS 

Volue continues to grow in the first quarter. Total operating revenue in the
first quarter amounted to NOK 400 million (340 million), corresponding to a
growth rate of 18% when comparing to the first quarter of 2023. SaaS revenues
were NOK 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
was NOK 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 was GBP 21.8 million (23.9 million)
and operating profit ended at GBP 4.5 million (4.1 million), corresponding to an
operating margin of 20% (18%). NSSLGlobal won GBP 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 of CAD 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 to CAD -2.6 million (-1.2 million) driven by lower top line, as
well as one-off items related to a joint venture in France. Total order backlog
at the end of the quarter was CAD 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, and Tekna 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 of EUR 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 in
Europe and North America. EBIT for the quarter ended at EUR 4.0 million (3.4
million), corresponding to a margin of 8.6%. Total order intake for the quarter
ended at EUR 35.1 million (41.1 million), and the backlog per quarter end was
EUR 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 POSITION 

Arendals Fossekompani's financial position remains solid. The company's
available cash on 31 March amounted to NOK 1,064 million. In addition, the
company has undrawn credit facilities of NOK 903 million, securing available
liquidity of NOK 1,967 million as per end of the quarter.

DIVIDEND 
On May 15th, Arendals Fossekompani's Board of Directors decided to pay an
ordinary cash dividend of NOK 1.00 per share for the first quarter of 2024. The
dividend is set to be paid on 31 May 2024.

ENDS 
 - - - - - 
 

For inquiries or additional comments, please contact:  
Benjamin Golding, Chief Executive Officer: +47 974 04 496 
Hanne Watts, VP Communications & Sustainability: +47 974 04 496 
 
Arendals Fossekompani | www.arendalsfossekompani.no  
Arendals 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
in Arendal, Norway has been listed at the Oslo 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. 
 
This stock exchange announcement was published by Lars Peder Fensli, CFO,
Arendals Fossekompani ASA, on 16 May 2024 at 08:00 CET.