First Quarter 2018: Strong revenue growth and high level of activity
In the first quarter of 2018, Norconsult had a turnover of NOK 1.26 billion, indicating growth of 9.7 per cent compared to the same period in the previous year. The operating profit was NOK 90.4 million, compared with 92.4 million in the same quarter of 2017. The operating margin for the first quarter was 7.2 per cent.
The underlying operating profit is approximately NOK 2 million higher than in the first quarter of 2017, also taking into account the sale of Vestfjordgaten 4 in February 2018.
“As market competition continues to tighten, we are very happy to present solid revenue growth and continued strong profit performance,” comments Per Kristian Jacobsen, CEO of Norconsult.
Focus on Architecture
Norconsult is Norway’s largest multidisciplinary consultancy firm and has in recent years focused particularly on building capacity and competence in the field of architecture. The purchase of 90.5 per cent of the shares in Nordic – Office of Architecture AS is Norconsult’s largest acquisition to date. Nordic, a company of ca 170 employees, has previously collaborated with Norconsult on a number of projects, such as the airports Gardermoen (in Oslo) and Flesland (in Bergen), the LHL Hospital Gardermoen and the hospitals in Førde and Aker, Norway.
“Our purchase of Nordic strengthens our competitive edge and opens up new possibilities for collaboration in new areas of the value chain. Going forward, we will be working together to tackle the greatest architectural and planning tasks in the Nordic region and internationally,” says Jacobsen.
In addition to this, Norconsult also carried out some minor acquisitions, such as Arkitektene Berg and Østvang AS in Os, Østerdalen, Norway.
Strong level of activity in Norway and overseas
In the first quarter, Norconsult has seen a particularly high level of activity in its four largest market areas: transportation, buildings, energy and water. In addition, the company has won several new contracts, such as 51 framework agreements with Sykehusinnkjøp HF for architectural and consultancy engineering services for various health trusts in Norway, and the engineering of Orkdal Folkehelsesenter in cooperation with Skanska Norge. Norconsult has also been awarded contracts for several different disciplines for the new hospital in Drammen, Norway. In Denmark, Norconsult has been commissioned by HENT to work on Kastrup Hotell. In Sweden, Norconsult has been awarded a contract to engineer a new wind farm in Härjedalen Municipality for Rabbalshede Elnät. Beyond the Nordic region, Norconsult was awarded a feasibility study for Sarawak Energy in Malaysia for the 1000 MW hydroelectric power plant Mentarang Induk HEP.
Growth in Sandvika
Following the sale of Vestjordgaten 4, Norconsult has entered a long-term tenancy agreement with the new owner Oslo Areal AS, and has also expanded the main office by renting additional office blocks at Kjørbo in Sandvika, Norway.