Annual results and Q4 2017: High level of activity and solid operations

23.March 2018

In the fourth quarter of 2017, Norconsult generated a turnover of NOK 1.37 billion, which represents an increase of 10.9 per cent on the same period last year. The operating profit for the quarter was NOK 84,6 million, compared to NOK 76 million in 2016. The operating margin for the fourth quarter came in at 6.2 per cent.

CEO of Norconsult, Per Kristian Jacobsen, is very satisfied with the development of the company’s turnover and profits. Photo: Einar Aslaksen.
CEO of Norconsult, Per Kristian Jacobsen, is very satisfied with the development of the company’s turnover and profits. Photo: Einar Aslaksen.

In the full year, Norconsult generated a turnover of NOK 4.6 billion, representing a 9 per cent increase on 2016. Operating profits for 2017 amounted to NOK 371 million, compared to NOK 329 million in 2016, while the operating margin came in at 8.0 per cent (7.8 per cent in 2016).

"We're very satisfied with the development of the company's turnover and profits. Even though the competition is hard, we are experiencing continued high levels of activity with more than 20,000 assignments per year. The positive development is largely attributable to a rise in utilisation and sound project execution, but also high employee satisfaction and a strong corporate culture contributes to the positive development," states Per Kristian Jacobsen, CEO of Norconsult.

High level of activity

Examples of assignments in Norway to which Norconsult has contributed in 2017 include the joint Ringerike Line and E16 project, the Greater Oslo Network Plan, Carbon capture facility for Norcem, the Tønsberg-Skien and Drammen-Kobbervikdalen intercity projects, E18 Tvedestrand–Arendal, E39 Rogfast, the Lower Røssåga power plant and hospital projects such as Førde Hospital and New Drammen Hospital. The company also tendered successfully for an assignment for Asker & Bærum Vannkraft IKS (ABV) related to a new water-treatment plant in Bærum, as well as a project planning assignment linked to residential development in Bispevika in Oslo.

Outside of Norway, the company took on several high-profile assignments in 2017, including the project planning of roads in one of the biggest urban development projects in Europe, Northern Djurgårdstaden in Stockholm, Kastrup Hotel in Denmark and was commissioned to work on a new hydropower plant in Zambia, the Kafue Gorge Lower Hydro Power Project.

Competence as a competitive advantage

Norconsult continues to expand, both organically and through acquisitions. Last year the company reinforced its position in the field of energy and power transmission in the Nordic market through the acquisition of the ARA Engineering Group. Additionally, the acquisition of Fundator AS around the turn of the year 2017/2018 strengthened its base in system development, machine learning and IT consultancy. Norconsult also strengthened its position within architecture through the acquisition of, among others, Faaland Arkitekter and Leiv Nes Arkitekter in Norway, as well as the Danish Skovhus Arkitekter and the Swedish Glantz Arkitektstudio.

In all, Norconsult hired around 300 new employees over the course of 2017, both recent graduates and experienced. The company works purposefully with recruitment to leave a clear footprint at relevant schools and universities in the Nordic region.

Surveys carried out by both Karrierebarometeret (Career Barometer) and Universum reveal that Norconsult is clearly one of the most attractive workplaces for engineers. In 2017, the company ran a recruitment campaign at the Norwegian University of Science and Technology (NTNU) in connection with the UKA festival, showcasing the concept "Heads for Tomorrow".

Award at the world's largest BIM conference

The technological development in the sector, combined with changes in purchasing processes and forms of contracts among customers and partners, requires the technical consultancy sector to develop and adapt the way in which they work. This is why innovation, digitalisation and smarter work processes are all high on the agenda in Norconsult. The capability of the company to assimilate new technology and digital work models (BIM) into projects is attracting attention at international level. For the second consecutive year, Norconsult was a finalist at the AEC Excellence Awards in Las Vegas. The company was awarded third place in the Infrastructure category for its unique and innovative use of gaming technology in the Ulriken project for Bane NOR.

Outlook

Norconsult is the largest interdisciplinary consultancy firm in Norway, and one of the leading players in its field in the Nordic region. Even though competition in the market remains tough, Norconsult is well equipped to continue delivering profitable growth over the coming years.

Contacts

Profile picture of Hege Njå Bjørkmann
Hege Njå Bjørkmann
Head of Communications
Profile picture of Christian Bekkevold Nilsen
Christian Bekkevold Nilsen
CFO