Q2 2020: Norconsult shows solid growth and strong results
In the second quarter of 2020, Norconsult posted sales of NOK 1,760 billion, compared with NOK 1,538 billion in the same period last year. The operating profit came in at NOK 157 million, compared with NOK 108 million for the second quarter of 2019, increasing from 7.1 per cent in the second quarter of 2019 to 8.9 per cent in the second quarter of 2020.
Turnover for the first half of 2020 came in at NOK 3.562 billion, compared with NOK 3.159 billion for the same period last year. The operating profit for the first six months came in at NOK 281 million, compared with NOK 235 million for the first half of 2019. The first-half operating margin was 7.9 per cent, compared with 7.4 per cent for the first half of 2019.
“We are very pleased with the revenue growth and profit generation in a market characterised by tough competition and price pressure. Most business areas are experiencing solid growth and we are especially pleased to see Norconsult Sweden and Denmark each reporting exceptionally strong performance compared with the previous year. We are also seeing the positive effects of our acquisitions and organic growth in recent years. The results also reflect significant savings for the quarter as a result of coronavirus measures related to travel, training courses and other events and activities. I am especially impressed by how our employees have succeeded in – and contributed to – continuing our solid growth in the midst of a challenging market situation. I also want to take this opportunity to thank our clients for their flexibility and willingness to adapt,” said Norconsult CEO Per Kristian Jacobsen.
Contracts won in the second quarter
In Norway, Norconsult was selected as the consultant for the construction of a new hospital in Narvik. In Asker, the company secured a consulting role on the detailed project planning for a new turning track for Bane NOR. Norconsult is continuing with the project planning of a new clinic and proton building at the Norwegian Radium Hospital in Oslo, where a pilot project involving an online construction site is also underway. In Innlandet County, the company has entered into an agreement to plan and execute the renovation of the Innbygda wastewater treatment plant in Tysel Municipality. The company has also been selected as Veidekke’s total supplier of design services in connection with the expansion and renovation of Raufoss upper secondary school. Norconsult has also recently been put forward for the contract for consultancy services in respect of the development of a zoning plan for the Ramstadsletta-to-Slependen section of the E18 motorway west of Oslo. Norconsult will also assist Nye Veier in connection with the planning work related to the E39/E18 (Ytre Ringvei) motorway in Kristiansand.
In Sweden, Norconsult’s new focus on the Transmission & Distribution market area (T&D) has within a short space of time won important contracts for Ellevio, Svenska Kraftnät, BillerudKorsnäs and European Energy, among others. The project for European Energy includes the design of Scandinavia’s largest solar farm in Helsingborg.
In Denmark, Norconsult has won two framework agreements with the Danish Armed Forces. As construction consultants, Norconsult has also signed a contract for a new school in Aarhus and the development of a 72,000 m2 sustainable maritime environment with various homes and other types of accommodation.