8 May 2018

Bergen Group ASA - Report for Q1 2018

CEO Torgeir Nærø in Bergen Group ASA notes a weak first quarter of 2018 in relation to both revenue and earnings. At the same time, he is confident of growth signals that give rise to optimism.

Bergen Group ASA had revenues of NOK 55.0 million in Q1 2018, compared with NOK 71.8 million in Q1 2017. Operating profit before depreciation (EBITDA) in Q1 2018 amounted to negative NOK 7.7 million, compared with NOK 5.0 million in Q1 2017.

"We have experienced a quarter with low activity within some of our core business areas, especially within business area Defense. The Group has nevertheless considered it strategically important to maintain significant capacity and expertise in the business area due to expectations of future growth. Therefore, we are encouraged by the positive trend in activity”, says Nærø with reference to an  increase in order backlogs from the Norwegian Armed Forces.

Business area Maritime Services (servicing the merchant marine), today the most important growth engine in the Group's existing business, has delivered  a strong first quarter with high activity and good capacity utilization.

“We maintain a robust and profitable business related to the company's implementation and expertise in complex maritime service projects in the civilian market. Here, the market outlook is still considered as good”, says Nærø.

“In addition, Norwegian Defense has notified its supply chain on clarifications related to f various long-term frame agreements and contracts during Q3 2018. We look forward to participating in these processes with a very competitive, competent and hungry organization”, says Nærø.

In recent quarters, Bergen Group has invested substantial resources in facilitating structural growth,   also including relevant acquisitions in order to secure Bergen Group a position as an attractive industrial group with base in the western part of Norway. The acquisition of the integrated feed fleet production and flexible dry dock capacity from Backe Bergen is considered an important step in this process.

The CEO looks forward to the acquisition of dry dock and fleet production by the end of Q2 2018.

"This acquisition strengthens our position in the aquaculture sector. We are happy to include a leading manufacturer of integrated feed barges in the Bergen Group, and have a strong basis for further profitable growth in aquaculture. At the same time, this facility provides us with a long-term strategic capacity that, if necessary, can be utilized towards the Group's other maritime activities, Torgeir Nærø points out.

The Q1 2018 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