In This Article:
Release Date: February 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Total group revenue increased by 14%, showcasing strong financial growth.
-
Operating profit rose significantly from NOK67 million to NOK151 million year-over-year.
-
EBIT margin improved to 13%, up from 7% in the same quarter last year.
-
Successful acquisition and delisting of Volue resulted in a financial gain of NOK3.3 billion.
-
NSSLGlobal reported a 14% revenue growth and secured GBP18.2 million in new contracts.
Negative Points
-
European sales for ENRX were lower compared to the same quarter last year.
-
AFK Vannkraft's higher production was offset by lower power prices in the NO2 region.
-
Teckna experienced a decline in total operating revenue due to lower order intake.
-
Hydropower production faced challenges with declining power prices.
-
Dividend payment of NOK1 per share may be considered modest by some shareholders.
Q & A Highlights
Q: Can you elaborate on the factors driving the significant increase in operating profit this quarter? A: Benjamin Golding, CEO: The increase in operating profit, which rose from NOK67 million to NOK151 million, was primarily driven by strong performance across several portfolio companies, notably NSSLGlobal and ENRX. These companies exhibited operational excellence and robust growth, contributing significantly to our improved EBIT margin of 13%, up from 7% last year.
Q: What impact did the acquisition and delisting of Volue have on your financials? A: Benjamin Golding, CEO: The acquisition and delisting of Volue, completed in collaboration with Advent International and Generation Investment Management, resulted in a financial gain of NOK3.3 billion for the AFK parent company in the quarter. This transaction has positively impacted our financial position.
Q: How did the decline in power prices affect your hydropower operations? A: Benjamin Golding, CEO: Despite higher hydropower production totaling 148.5 gigawatt hours, the decline in power prices in the NO2 region, from EUR70 to EUR53.5 per megawatt hour, offset the increased production. This price drop affected our revenue from AFK Vannkraft, which reported NOK96 million in total operating revenue.
Q: Could you provide more details on the restructuring program implemented by Volue? A: Benjamin Golding, CEO: Volue implemented a comprehensive restructuring program aimed at significantly reducing the operational cost base. This initiative is expected to pave the way for continued margin expansion through 2025, enhancing the company's financial performance.