Norway: Bergen Group’s 3Q Offshore Turnover Doubles

In this year’s third quarter, Bergen Group had a turnover of NOK 822 million and an operating profit of NOK 53 million before depreciation and amortisation  (EBITDA). The numbers are mainly characterised by strong results from the corporation’s offshore activities, which have doubled the turnover so far this year, and which deliver solid profit margins.

 “We are pleased that the corporation’s determined focus on growth within the offshore market is beginning to pay off. Offshore is a market in which we are very well positioned to grow significantly during the years to come”, says CEO Terje Arnesen.

The offshore turnover doubled

Earlier this autumn Bergen Group implemented a restructuring of the corporation, which now consists of three different divisions: Offshore, Shipbuilding and Services. In the 3rd quarter of 2011 alone the corporation’s offshore division could put down a turnover of NOK 385 million and a strong profit margin of 15.0 per cent.

During the first nine months of the year, the offshore activities in Bergen Group are doubled compared to the same period last year. Offshore has now become a highly profitable division that generates good results.

“Both Bergen Group Rosenberg and Bergen Group Hanøytangen deliver strong results, based on a satisfactory level of activities even if the capacity at both facilities has not been fully utilised in this quarter. The results are caused by strong project management, securing both quality and efficiency in the implementation”, the CEO points out.

Four newbuildings next year

Bergen Group’s Shipbuilding division has, for the first time in a while, delivered a quarterly result with a loss. Both newbuilding shipyards are waiting for altogether four hulls that will provide a very high level of outfitting activity next year. One of these hulls, Fjord Line’s first cruise ferry, should have been in place at Fosen at the end of the quarter. However, delays at the yard in Poland have caused its arrival time to be postponed until around New Year.

 “In the third quarter we have made the necessary appropriations related to the delayed delivery of the hull. There will be no consequences of the delay with regards to the progress of the other projects, and we are now looking forward to a very exciting year with a high level of construction activity in the shipbuilding division”, Arnesen says.

CEO Terje Arnesen has great expectations of the new division Bergen Group Services, which is a result of the merger between the two divisions Maritime Service and Technology.

“The new division will enable a better coordination of customer and sales activities in these markets. We will secure a position as a complete supplier of services for both the offshore market and the ship maintenance market. The goal is increased flexibility, a higher level of activity and strengthened margins”, Arnesen concludes.

Expecting further growth

At the end of the 3rd quarter Bergen Group had a total order backlog of NOK 4.9 billion. This is approximately at the same level as the end of the last quarter. Compared to the same time last year the order backlog constitutes an increase of NOK 700 million. The CEO is optimistic regarding further growth:

“The market outlooks within offshore related activities are very positive – both in the short and long term. This is an important market for all our three divisions, and we think that we as a corporation are very well equipped to accomplish a profitable growth in the years to come”, says CEO Terje Arnesen.

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Source:Bergen Group , November 9, 2011