Norway: Bergen Group CEO Pleased with Offshore Division

Bergen Group today reported that during the fourth quarter of 2011 the company had a turnover of NOK 932 million and a profit of NOK 47 million before depreciation and write-downs.

The group had a  total turnover of NOK 3 735 million for the entire 2011, which constitutes a growth of nearly 12 per cent. The operating profit before depreciation and write-downs were NOK 204 million.

CEO Terje Arnesen is pleased with the growth in both turnover and profit. In particular he points out the very positive development within the industry group’s Offshore division.

 “Last year our turnover within the Offshore division was doubled. This year will start with a slightly lower level of activity, but we are still confident that there will be further growth in the years to come”, Arnesen says.

In order to handle the expected growth a Letter of Intent regarding the purchase of the majority shareholding in a well-established engineering company in Stavanger was  signed earlier this month. In addition 600 new workplaces will soon be ready for use in a new, state of the art administration building which is being completed at Bergen  Group Rosenberg.

Shipbuilding about to increase activity

Bergen Group’s operations have been split into three different divisions: Offshore, Shipbuilding and Service.

Last year the Shipbuilding division was marked by a low level of activity, pending new hulls that have been under construction abroad. The outfitting of the first hull for  Fjord Line is delayed, and the hull is expected to arrive at Fosen for the outfitting work in March. The delay causes a somewhat reduced level of activity at Fosen in the first quarter of 2012.

“We are now heading into a busy period with a high level of activity for the entire Shipbuilding division”, Arnesen says, and refers to the fact that four different ships with a  total contract value of NOK 2.7 billion will be delivered throughout the year.

The CEO can also be pleased that the positive signals of a strengthened market for the building of offshore ships so far has resulted in a new contract for a large and advanced offshore ship. The contract with Volstad Maritime, which was signed last week, has on its own  a value of more than NOK 800 million.

The new division Bergen Group Services, which is a result of the merger between the two divisions Maritime Service and Technology  in Q3 2011, ended last year with good quarterly results, providing both an increased turnover and improved results.   “We will continue the process of optimising this  division further. The goal is to secure a stronger position as a total supplier of services both for the offshore and ship maintenance markets. Our competence and facilities  provide exciting opportunities for this”, Arnesen points out.

Expects further growth

By the end of the fourth quarter of 2011 Bergen Group had a total order backlog of NOK 4.5 billion. In addition the group has signed new contracts for more than NOK 1  billion.

“The market outlook for all three divisions within the group is fundamentally positive, and strongly characterised by a well-founded optimism regarding the future for  Norwegian and international petroleum industry”, CEO Terje Arnesen concludes.

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Offshore Energy Today Staff, February 15, 2012