22 August 2018

Bergen Group ASA - Report for Q2 2018 and 1H 2018

Bergen Group ASA recognized NOK 47 million in revenues in 2nd quarter of 2018, and aggregate revenues of NOK 102 million in the first six months of fiscal year 2018.

Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) for the 2nd quarter 2018 was minus NOK 6 million. Aggregate EBITDA for first six months of 2018 is minus NOK 14 million. Order backlog increased during the quarter from NOK 138 million to NOK 153 million, mainly due to increase in orders from the oil and gas market.

Bergen Group CEO Torgeir Nærø reports a weak 2nd quarter in line with the previous quarter. Expectations of both improved revenue as well as earnings forthcoming quarters is still strong.

“We have experienced a quarter characterized by lower activity for parts of our business, and in particular towards defense projects. At the same time, 2nd quarter has confirmed our expectations for growth as was observed early this year. It is particularly pleasing to note the increased order backlog during the quarter”, claims Nærø, based upon increased demand for the Bergen Group’s maintenance- and fabrication services in the oil and gas sector.

“Our ambition to grow includes increased focus on offshore-related business. Clients also consider our core competencies in maritime service and maintenance as attractive in this regard”, states Nærø.

The company CEO expects a positive effect in 2nd part of 2018 from organizational and cost optimizing measures undertaken in 1st half of 2018.

“Bergen Group is now tuned to handle future growth and adapted to the expected market development. We have a dedicated focus on profitable growth”.

Recent quarters Bergen Group has invested substantially in laying a foundation for a growth phase that also includes structural measures and relevant acquisitions, in sum contributing to Bergen Group becoming an attractive industrial group based in, and operating from, Western Norway. The target is to secure growth through addition of complementary competencies and capacities, providing a more robust operational platform, with potential for synergies, a strengthened market position and access to new market segments.

The acquisition of the integrated feed barge manufacturing business and dry dock capacity from Backe Bergen was finalized in July 2018, and business is now continued under the Bergen Group Sjøsterk banner. The company has received its first major order, and production of a new concrete service barge due for delivery 1st quarter 2019 has started.

“Through Bergen Group Sjøsterk, the Group’s position in the aquaculture sector is significantly strengthened. The demand for integrated feed barges in concrete is considerable, and we expect to grow the Bergen Group Sjøsterk order backlog upcoming quarters”, states Nærø, and points to significant opportunities for synergies with the rest of Bergen Group activities.

The Q2 and 1H 2018 report can be downloaded here.

Contact persons:

CEO Torgeir Nærø, tel. +47 922 00 778 
CFO Nils Hoff, tel. +47 930 92 346 
SVP Corporate Functions & Communications Øyvind Risnes, tel. +47 480 48 561