23 October 2015

Bergen Group ASA clears the way for future growth

Bergen Group ASA is about to finalise a strategic and operation clean-up process which will contribute to future growth and continued profitability in the Group’s remaining operations.

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CEO Hans Petter Eikeland (pictured) characterises the process as very important in order to build the future values of the group:

“We have been through some very demanding yet essential processes, which have included both sale of businesses and the bankruptcy of subsidiaries. This has happened in a period characterised by decreased activity within large parts of the offshore-related industry, which has caused us extra challenges. However, now we can see the contours of a future that will enable us to think growth based on profitable conditions”, Eikeland points out.

The CEO refers to the fact that Bergen Group ASA’s operational activities now mainly happen in the subsidiary Bergen Group Services AS. For many years Bergen Group Services has had a stable turnover and annual profits. Last year the company had a turnover of NOK 265 million and delivered an operating profit of NOK 24 million.

“Bergen Group Services’ operations and funding are independent from the other companies within the group. Neither the bankruptcy nor the Group’s bank have any claims against Bergen Group Services, which has a solid balance and has operated with profit for a long time”, the CEO points out.

Over a long period, Bergen Group Services has built a robust and varied customer portfolio in the spot market. At the same time, the company has succeeded in establishing long-term framework agreements that contribute to further developing and strengthening the company’s competence within complex maritime service projects. The extensive framework agreements of various maritime services towards the Norwegian Armed Forces and the Norwegian Society for Sea Rescue are confirming this.

“Bergen Group Services’ targeted efforts towards further developing and extending their market base has yielded positive results in a year that has been challenging both for us and our competitors”, says Eikeland. He points out that during October the company has been awarded two exciting framework agreements with established players within maritime operations. Both the agreement with Volvo Penta of becoming part of their regional service network and the agreement with Marine Jet Power AB regarding the sale and service of the company’s water jet systems in Norway will further strengthen the company’s operational platform and basis for future growth.

Bergen Group Services has also taken steps to ensure larger facilities and increased production capacity. Purchasing the operations of Fjell Industries earlier this year has added close to 3 500 extra square meters of production facilities well adapted for future production and service assignments.

“During a demanding time, we have succeeded in establishing both increased production capacity and strengthened competence, providing us with the foundation for future growth within both existing and new markets”, CEO Hans Petter Eikeland states.

Connected to the clean-up process in Bergen Group ASA, steps have been taken to reduce costs while strengthening the coordination of the operational competence. As part of this process, the remaining Group management has this October moved from Hanøytangen and into the administration facilities of Bergen Group Services at Straume in Fjell municipality west of Bergen.

 

Contact:
CEO Hans Petter Eikeland, Bergen Group ASA, mobile +47 932 08 177