2 November 2018

Bergen Group ASA – Interim report for Q3 2018

Bergen Group ASA has in third quarter of 2018 laid the foundation for a significant move in the process of establishing a strong and attractive industrial group based in western part of Norway.

The group has initiated a merger process with Endùr Fabricom, as well as succeeding in establishing a strong foothold towards the aquaculture industry.

 "Since July, we have managed to build an order book of NOK 100 million towards the aquaculture industry, and expect further growth going forward, "says Torgeir Nærø, CEO in Bergen Group ASA.

The major structural step in the quarter is the announcement of a merger with the oil service company Endùr Fabricom. The merger agreement will provide a strong industrial group with nearly 400 employees and a total order book of around NOK one billion.

“The growth strategy for the Group launched in spring 2017 is now producing results. The announced measures will give us a strong foundation for healthy growth and solid presence in both the oil and gas market, within maritime service and towards the aquaculture industry”, summarizes Torgeir Nærø.

He is less pleased with the Group’s results in Q3. Weak operation in parts of the group combined with one-off expenses and losses on a major pre-fabrication project, resulted in an EBITDA of minus NOK 8 million and total revenues of NOK 50 million in Q3. The revenues year-to-date for the Group was NOK 152 million. The order book shows a net increase of almost 40 percent compared with the same period last year, and now amounts to NOK 190 million.

"We have taken investment costs in the quarter, which are expected to provide a basis for more profitable operations and which will provide a stronger platform for future growth. These costs are related to both organizational restructuring and use of external legal and financial advisors linked to the transaction-process with Endùr Fabricom”, Torgeir Nærø points out.

However, the CEO is clear that parts of the Group's operations have not delivered satisfactory profitable operations during the quarter. The market situation in the area of ​​Energy & Industry (prefabrication) has been challenging, and measures will be taken in current quarter in order to ensure profitability and to be in line with the strategy of the merged company.

"We expect that the fourth quarter will provide more visible effects on the various measures implemented during the last quarters in order to safeguard the platform for profitable operations. At the same time, we have managed to increase the order book significantly compared with the same time last year”, says Nærø.

The CEO rejoice at the success for the acquired barge production and dry dock capacity, which in July 2018 was taken over by the wholly owned subsidiary Bergen Group Sjøsterk.

"Our ambitions with this acquisition were to reinforce our presence as an attractive national supplier to the aquaculture industry. After only four months we have managed to win orders for around NOK 100 million on projects for deliveries to customers spread over most of the Norwegian costal line, and giving us full capacity utilization over the next two quarters”, Nærø points out.

The Q3-18 interim 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