30 May 2008

Bergen Group first quarter 2008

Bergen Group had an operating profit in the first quarter 2008 of NOK 24 million after operating revenues of NOK 703 million, compared with an operating profit of NOK 45 million in the fourth quarter 2007, where the operating revenues reached NOK 796 million. Due to the favorable order situation in Shipbuilding and a strong offshore market going forward, the board and the management in Bergen Group expect a satisfactory development in operating revenues and profit for the year. Good performance in project management in Shipbuilding and successful positioning for the large EPCI contracts in the offshore business, will be key in the operations going forward. Bergen Group will continue to play an active role in restructuring of the industry. The company’s first quarter report is attached to this release. Key issues and comments from the CEO:

Operations as expected in the first quarter

“The operations in the first quarter developed as expected”, comments CEO in Bergen Group, Roger Simmenes. “We completed the Snøhvit-project in the fourth quarter last year, and expected a lower turnover and profit in the first quarter as a possible consequence. For the moment there are postponements in tendering processes in the North Sea, and it might take some time to replace the Snøhvit-project. This, in addition to full utilization of capacity in Shipbuilding, explains why the order backlog was reduced from NOK 5.7 billion to NOK 5.0 billion during the first quarter.”

”Shipbuilding had high turnover in quarter following the final work on the offshore vessel Fugro Saltire. Unfortunately, the operating profit was somewhat lowered due to delays from a sub supplier,” continues Mr. Simmenes.

The acquisition of Fosen 

After the end of the quarter, it is released that Bergen Group will acquire Fosen Yards. Agreed purchase price is NOK 200 million, and closing of the transaction is expected in June. “Fosen Yards will fit well into our growth strategy for the business areas Offshore and Shipbuilding,” says Mr. Simmenes.

Listing on Oslo Stock Exchange

The Board of Oslo Stock Exchange decided in its meeting April 23 to accept the company’s application for listing on Oslo Stock Exchange, with first day of trading not later than June 6.  Due to the acquisition of Fosen Yards the company has applied for postponement for listing not later than June 30. The Board of Oslo Stock Exchange confirmed this postponement on May 29.

Outlook

Board and management of the company confirm the expection about healthy growth in turnover in 2008, and profitability on level with 2007 (EBITDA).Selskapets styre og ledelse opprettholder forventningen om god vekst i omsetningen i 2008 samt lønnsomhet på linje med det som ble oppnådd i 2007 (EBITDA).

” Utilization of capacity within Shipbuilding is very good, Mr. Simmenes points out.” In this business area we will have a strong focus on project management to achieve better profitability.” He continues: “Through partnerships, new employment and investments we now implement actions to improve our position in tendering processes in a strong offshore market, and we do look optimistic on our opportunities.”  

Attachment: Report for the first quarter 2008

Download it here (272kb)

Contact person: CEO Roger Simmenes, tlf 93 24 03 11 eller roger.simmenes@bergengroup.no