Arendals Fossekompani (AFK) Q4 2024 earnings summary

Executive summary

• Group revenue for Q4 2024 reached NOK 1.2bn, up 14% year-over-year, with operating profit (EBIT) at NOK 151m, margin 13% (up from 7%).

• FY 2024 revenue was NOK 4.4bn, a 12% increase year-over-year; EBIT was NOK 390m, margin 9% (down from 11%).

• Major gain of NOK 3.0–3.3bn from the Volue transaction, reducing AFK's stake from 60% to 40%.

• Portfolio companies ENRX and NSSLGlobal delivered record revenue and EBIT; Volue completed restructuring and an acquisition.

• Dividend of NOK 1.00 per share for Q4; moving to annual dividend from Q2 2025.

Financial highlights

• Q4 2024 group revenue: NOK 1.2bn (NOK 1bn), EBIT: NOK 151m (NOK 67m), margin 13% (7%).

• FY 2024 group revenue: NOK 4.4bn (NOK 3.9bn), EBIT: NOK 390m (NOK 444m), margin 9% (11%).

• Net cash position at year-end: NOK 45m; liquidity at NOK 2.9bn (NOK 2.2bn).

• Equity ratio strengthened to 60% (Q4 2023: 49%).

• Dividend for FY 2024: NOK 4.00 per share, totaling NOK 219m.

Outlook and guidance

• Group revenue and operating profit (excluding AFK Vannkraft) expected to be in line with 2024 for 2025.

• Volue and Tekna expect higher revenue and operating profit in 2025; ENRX expects flat revenue but higher operating profit.

• NSSLGlobal, AFK Vannkraft, and AFK Property forecast lower revenue and profit in 2025.

• Alytic expects revenue growth but continued negative operating profit as portfolio companies scale.

• Significant uncertainty remains due to geopolitical risks, supply chain constraints, inflation, and energy prices.