27 February 2015

Bergen Group – Interim Report for Q4 2014

Bergen Group's continuing operations in Q4 2014 generated revenues of NOK 357 million and a profit before depreciation (EBITDA) of NOK 14 million.

The order book more than quadrupled during 2014, and was at the end of the year at NOK 380 million.

CEO Asle Solheim signals a sober optimism regarding the future prospects.

“Bergen Group is experiencing the situation as demanding on an equal footing with other companies that provide services to the offshore market. We can show profit in the Offshore division in Q4, but the overall result for last year showed a deficit in this division. Our clear objective is to secure positive earnings together with continued growth”, says Solheim.

Within the other Group’s focus business area related to maritime and industrial services, the Services division achieved profit before depreciation and amortization in both Q4 and for the year as a whole.

The Services division is not as exposed to market fluctuations as with the offshore activity, and Bergen Group is expecting a stable and profitable growth in this division in the coming years. In this context the Group has secured increased production capacity and activity through the enterprise purchase of Fjell Industries AS earlier this month. The Services Division has during 2014 increased their backlog from NOK 45 million to NOK 171 million.

“The figures for Q4 show that we are on track in our efforts to develop a robust platform for profitable operations in the Group also in quarters without major rig projects”, says CEO Asle Solheim.

Bergen Group has recently completed staff reductions in activity areas that historically have taken most of their revenue from the discontinued shipbuilding business. In addition, an extraordinary depreciation on book value in Bergen Group Skarveland AS has been taken. This company has historically had shipbuilding as an important business, but will now be part of the group's continuing operations related to Services Division. This depreciation cause a negative operating result (EBIT) for the Group in Q4.

Bergen Group’s discontinuing operations, which are mainly related to operations in the former shipbuilding division, generated a loss (EBIT) of NOK 56 million in Q4. Costs to dismantling this business have been higher than expected. An increased provision in Q4 is thus accounted for. No significant profit effect from discontinued operations is expected in 2015.

Bergen Group is in the process of strengthening the Group's financial position, and in this connection has secured an extension of its current loan facility until 30. September 2015 on certain terms and conditions. Bergen Group will continue the process of securing longer term financing during the first half of 2015.

The Q4 2014 interim report can be downloaded here.  The Q4 2014 presentation can be downloaded here.

Contacts:

CEO Bergen Group, Asle Solheim, tel. +47 993 28 465.
CFO Bergen Group, Henning Nordgulen (finance), tel. +47 952 65 990
SVP Corporate Functions & Communications Bergen Group, Øyvind Risnes (media), tel. +47 480 48 561