Norway's Arendals Q2 operating profit jumps, driven by hydropower, ENRX and Tekna
Norway's Arendals Q2 operating profit jumps, driven by hydropower, ENRX and Tekna
Overview
Norway industrial investment firm's Q2 revenue declined 2% yr/yr, driven by lower ENRX revenue
Q2 operating profit rose sharply, with margin up to 14% from 4% last yr
Net loss after tax reflects high effective tax rate including resource rent tax on hydropower
Outlook
Arendals expects 2026 group revenue to be in line with 2025
Company expects 2026 operating profit to be significantly higher, driven by prior ENRX impairment and higher hydropower revenue
Result Drivers
HYDROPOWER PERFORMANCE - High electricity prices and more than double power production drove strong profit in hydropower
ENRX PROFITABILITY - ENRX saw lower revenue but improved profitability from cost reductions and the absence of losses from the former Charge division
TEKNA GROWTH - Tekna's revenue rose 18% due to higher activity in both business areas and a favorable sales mix
Company press release: ID:nObiKNtFYa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenues |
| NOK 884 mln |
|
Q2 Adjusted Net Loss |
| NOK 23 mln |
|
Q2 EBIT |
| NOK 123 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the electric utilities peer group is "buy"
Wall Street's median 12-month price target for Arendals Fossekompani ASA is NOK237.00, about 21.5% above its August 20 closing price of NOK195.00
Reuters Recommended Reads
Aug 19 - Norway's Zaptec Q2 revenue hits record high on EV demand
Aug 18 - Netherlands' Alfen H1 revenue rises on Smart Grid Solutions strength
Aug 20 - Poland plans temporary corporate tax hike for big utilities, fuel companies
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)