The brokerage house ABG Sundal Collier had a profit before tax of NOK 95.9 million in the third quarter. This is almost a doubling from the same period last year when the profit before tax was NOK 48.9 million.
Revenues were NOK 363 million, up from NOK 271 million. The sharp increase in income is mainly related to far greater income from company consulting.
The brokerage pays a dividend of NOK 0.17 per share for the first half of the year.
“While the third quarter is normally the seasonally weakest quarter, we managed to achieve the strongest third quarter result since 2007 and the second best since the company was listed almost 20 years ago,” says CEO Jonas Ström of ABG Sundal Collier in a statement.
Burning capital market
The second half of 2020 has been an extremely hectic year for Norwegian brokerage houses where stock exchange listings and capital acquisitions have come like pearls on a string, and it was difficult to imagine a fabulous year in March, when the corona virtually shut down the whole world.
In the midst of the crisis, Nordea CEO Robert Næss said that earnings for 2020 will be destroyed for most companies, and advised investors to position themselves for 2021. How earnings will remain remains to be seen, but there is no doubt that the share prices of the listed companies impressively, the tub has risen well from the bottom.
And many are seeking happiness on the stock market. So far this year, 28 new companies have listed their shares on the Oslo Stock Exchange. 13 of them in the third quarter – and this is in addition to a number of capital raising and bond issues.
ABG Sundal Collier, together with a number of other brokerages, has benefited from the activity. In the quarter, ABG assisted Quantafuel and Nordic Semiconductor, among others, with its capital raising, and Kistefos with raising one billion in the bond market.
In addition, the brokerage assists with transactions in Sweden.
The top manager seems satisfied with the market.
“Our capital market operations are firing on all cylinders now that activity in the equity market remains at record high levels and the market for high-yield bonds is making up for some of the losses from the first half,” says Ström, who points out that the brokerage has been involved in 30 transactions during the quarter.
Pang start in the fourth quarter
Ström says they have a record-breaking pipeline for the next few quarters, especially in the equity markets.
– The start of the current quarter has been very strong. To date, we have completed five ECM transactions (ECM = equity market, editor’s note), with gross proceeds of NOK 4 billion, says the ABG CEO.
The brokerage has so far in October helped Play Magnus and Zaptec on the stock exchange, and assists Arendals Fossekompani’s green investment Volue, as well as House of Control which will be listed later this month. (Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases using a link, which leads directly to our pages. Copying or other form of use of all or part of the content, can only take place with written permission or as permitted by law. For further terms see here.