Norway: Bergen Group Reports Increased Order Book and Strengthened Profit Margin in Q4 2010

Bergen Group announced a strong boost in the group’s order book during Q4 2010. At the same time, the profit margin is considerably improved compared with the previous quarter.

“The general outlook for the group’s market areas are considered positive in both short and long term”, says CEO Pål Engebretsen.

The revenue in Q4 finalized on NOK 811 million(USD 140 million), a positive development compared to both Q2 and Q3. Efficiency in project execution and dedicated cost focus has strengthened the group’s total operating profit in Q4, showing an EBITDA of NOK 36 million and an EBITDA-margin of 4.4 percent. The order backlog at the end of 2010 amounted to NOK 5.8 billion, an increase of NOK 1.4 billion compared to 31 December 2009. In addition, new orders for more than NOK 1 billion have been signed in January this year.

“The Group’s turnover and profit in 4th quarter of 2010 was marked by continued low capacity utilization in parts of the business. The improved order situation will generate future growth in activity, especially in the 2 half this year and beyond, “said the CEO, who points out that several of the new contracts also have a great strategic value for the group.

“Bergen Group has a clear objective to further develop our international competitiveness. New orders in the 4th quarter confirm that we have strengthened our position in the most knowledge-intensive markets in the offshore and maritime sector, “said Mr. Engebretsen and refers to the extensive EPCIc contract with Statoil for the Kvitebjørn-field and the contract with Volstad Maritime in the construction of a new advanced OCV-vessel as examples of this.

Bergen Group has an improved financial structure with reduced debt as a result of strong operational cash flow for the last two years. The group will consider opportunities that can strengthen the foundation for an expected growth in activity. Going forward the company will evaluate how to secure the expected growth in activity and also look into different structural alternatives to reveal the underlying values in the group.

Interim report for the fourth quarter and preliminary report for 2010 is enclosed.

[mappress]

Source:Bergen Group, February  10, 2011;