Release Date: November 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Total operating revenue increased by 5% compared to the same quarter last year, reaching 909 million NOK.
- The acquisition of Volume by Advent International and Generation Investment Management is expected to accelerate growth and value creation.
- N SSL Global reported strong sales and operating profit, with significant new business opportunities in government and maritime sectors.
- The company has implemented structural and strategic changes, resulting in a more robust portfolio and strengthened financial position.
- Arendals Fossekompani ASA is paying a dividend of one NOK per share for the third quarter, reflecting shareholder value return.
Negative Points
- Operating profit decreased by 5 million NOK compared to the third quarter of last year, primarily due to cost increases and lower power prices.
- Nris reported a 3% decline in total operating revenue compared to the same quarter in 2023.
- Techna experienced a significant 16% drop in total revenue, with systems revenue decreasing by 43%.
- The reduction in shareholding of Volume from 60% to 40% may indicate a strategic shift or reduced control over the company.
- Despite strong sales in some sectors, overall financial performance was impacted by declines in other areas, indicating potential volatility.
Q & A Highlights
Q: Can you elaborate on the factors contributing to the 5% increase in total operating revenue for the third quarter?
A: The increase in total operating revenue, which amounted to 909 million NOK, was largely driven by strong growth in our portfolio company N SSL Global. This growth offset some of the challenges faced in other areas, such as cost increases in Nris and lower power prices. - Benjamin Golding, Presenter
Q: What were the reasons behind the reduction in operating profit compared to the same quarter last year?
A: The operating profit for the quarter was 51 million NOK, a reduction of 5 million NOK compared to the third quarter of last year. This decrease was mainly due to cost increases in Nris and lower power prices, which impacted our overall profitability. - Benjamin Golding, Presenter
Q: Could you provide more details on the acquisition involving Advent International and Generation Investment Management?
A: In October, our fossil company, Advent International, and Generation Investment Management completed the acquisition of Volume. As part of this transaction, Arendals Fossekompani reduced its shareholding from 60% to 40% and took the company off the Oslo Stock Exchange. This joint strategic ownership is expected to significantly accelerate Volume's growth and value creation, benefiting our shareholders. - Benjamin Golding, Presenter
Q: How did N SSL Global perform in terms of sales and contracts during the quarter?
A: N SSL Global reported continued strong sales and an operating profit of 4.1 million pounds. The company secured 9.1 million pounds in contracts across its government and maritime sectors, with the majority, 8.7 million pounds, representing new business opportunities. - Benjamin Golding, Presenter
Q: What strategic changes have been implemented to optimize the investment portfolio?
A: Over the past few quarters, we have implemented several structural and strategic changes to focus and optimize our investment portfolio. These measures have resulted in a more robust portfolio, strengthened our liquidity and financial position, and increased our capacity to support value creation within our existing investments and beyond. - Benjamin Golding, Presenter
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
