Bergen Group’s pipe business files for bankruptcy
- Business & Finance
Bergen Group Skarveland AS has resolved a petition for bankruptcy due to lack of new orders and failing results.
Bergen Group Skarveland is a wholly owned subsidiary of Bergen Group ASA.
The company’s business has been related to pipe installations towards building of ships and deliveries for the offshore and onshore industry. The company’s headquarters are located at Sunde in Kvinnherad, in the western part of Norway.
Bergen Group says that the shipbuilding and offshore market have over the past year experienced cutbacks, which have had a strong negative impact.
The company’s non-audited figures for first half 2015 show a turnover of NOK 32 million ($4M) and an operating loss (EBIT) of NOK 9 million ($1M).
Bergen Group in 2014 decided to reduce the group’s involvement in the shipbuilding business and to focus more on offshore related activities.
After the sale of the Group’s properties and operating assets at Hanøytangen in May 2015, the group’s remaining operational activity remained related to the Services-segment, consisting of Bergen Group Services and Bergen Group Skarveland. In 2014, those two companies with over 250 employees had in total revenues of approximately NOK 400 million ($49 million).
Profitability has not been satisfactory for Bergen Group in the first half year of 2015. The group said it was mainly due to a weaker market in the oil and gas sector, a temporary lower activity towards the Norwegian defense and weak profits in Bergen Group Skarveland AS.
As of August 31, Bergen Group Skarveland had a total of 70 permanent employees.
Offshore Energy Today Staff