29 May 2015

Interim Report for Q1 2015

Bergen Group's continuing operations in Q1 2015 generated revenues of NOK 360 million and a profit before depreciation (EBITDA) of NOK 11 million.

The order backlog of NOK 293 million is mainly related to the Service operations. After the sale of the offshore operations on Hanøytangen that was concluded earlier in May, the Services segment is now the group's most important platform going forward.  

CEO Asle Solheim signals a sober optimism regarding the future prospects, even at a time when the challenges are queuing for many offshore related companies.

“The sale of rig service and properties on Hanøytangen 19 May makes us far less exposed to the uncertainty that still is expected to characterize the offshore industry going forward. The sale proceeds of NOK 245 million enable us to strengthen the Group's financial position and reduce the debt burden significantly”, Asle Solheim points out.

Following the sale of Bergen Group ASA's properties and operations on Hanøytangen, the Group's remaining operational activities is now related to the Services segment, consisting of Bergen Group Services and Bergen Group Skarveland. These companies, with a total of 250 employees, had a turnover of around 440 million in 2014. The order backlog in this segment at the end of March was a record high of NOK 212 million.

“The remaining activities in Bergen Group have a well-established market position based on documented profitable operation over a long time. The main engine going forward will be Bergen Group Services, which over several years has delivered positive operating and growth in order backlogs”, says Asle Solheim.

The sale of Hanøytangen contributes to a strengthening of the process of further developing the Group’s position related to industrial and maritime services, including construction and service contracts for the oil and gas industry. Bergen Group Services has in recent years increased its activity in construction and service contracts for the oil and gas industry. However, the main operations related to the company's extensive capacity and expertise in ship maintenance and repair of ships, and maintenance and repair of diesel engines used for demanding maritime, defense and offshore operations with extra high requirements for reliability and service quality. The company has extensive framework agreements in various maritime services with both the Navy and the Rescue Society.

Based on the significant structural changes within the Group, it has been initiated a process to identify and implement various cost-cutting measures, including an increased integration of the administrative functions in the Group management and the remaining operating companies. The Board has also implemented strategic processes in order to prepare for further growth in the continuing business areas.

 

Contacts:

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