Bergen Group Records Steady Increase in Subsea and Maritime Projects

Bergen Group had a turnover of NOK 439 million in the 2nd quarter of 2014 and a result from operations before depreciation (EBITDA) of minus NOK 30 million.

The deficit was primarily due to costs relating to the shipbuilding activities, which has now been fully sold out of the group. The order backlog in the group’s continuing operations has increased significantly during the last two quarters and the basis for profitable growth is considered to be good.

CEO Asle Solheim sees the operation in the 2nd quarter as a fundament for attractive growth within the group’s future focus areas related to Maritime Service and Offshore.

“We have come far in our efforts to strengthen Bergen Group Hanøytangen’s market position related to the execution of various types of rig service and maintenance assignments. This is an area with an attractive potential,” says CEO Solheim. Among the actions implemented in the quarter is the establishment of the project-oriented partnership between Bergen Group Hanøytangen, Apply Rig & Modules and Semco Maritime. In addition, the upgrading and preparation of the dry dock has been completed.

“The cooperation with Apply and Semco provides a unique capacity and competence within the execution of complex and cost effective projects relating to rig upgrades, modifications, installation and commissioning. The objective is to develop Hanøytangen to become Norway’s prime yard for rig and maritime projects,” says Asle Solheim, and acknowledges that the cooperation has already generated significant interest from the business environment.

The CEO is also satisfied that the group’s strategic focus on increasing the activity at Hanøytangen in addition to rig assignments is starting to show results. “In the last two quarters we have registered a steady increase in both subsea and maritime projects, and we expect further growth in the years to come,” says Solheim.

Bergen Group has in the last quarters effected several actions in order to focus towards the group’s future growth areas related to offshore and maritime service activity. The sale of the remaining stake in NorYards AS (the former shipbuilding division in Bergen Group) was announced August 18th, and delivery of the final vessel constructed by Bergen Group is expected to take place this week. Losses in the shipbuilding division had a negative impact on the group’s operating result of approximately NOK 20 million in the quarter.

“It is not satisfactory to conclude the operating side of our shipbuilding activity with a new quarter with losses. We are, however, satisfied that the Services division continues to build a strong order backlog based on long term framework agreements, which also contributes to develop the group’s competence and capacity related to complex maritime projects,” Asle Solheim underlines.

“The group’s main focus now is to strengthen the order backlog and the rig related activity at Hanøytangen. We are involved in attractive tendering processes, which are expected to be concluded during the current and next quarter. In addition, we continue the process of further strengthen the subsea activities as well as prepare for future demolition project,” says CEO Asle Solheim in Bergen Group.

Press Release, August 21, 2014