Q2 2021: Good results and strong growth for Norconsult
In the second quarter of 2021, the Norconsult Group recorded turnover of NOK 1 910 million, compared with NOK 1 760 million in the same period last year. EBITA came in at NOK 167 million, compared with NOK 153 million for the second quarter of 2020. The consolidated gross EBITA margin closed on 8.8 per cent (Q2 2020: 8.7 per cent).
The Norconsult Group delivered strong growth in both gross turnover and EBITA in the first half of 2021. At NOK 3 810 million, turnover was up NOK 249 million on the same period last year, while EBITA of NOK 342* million was up NOK 56 million. The operating margin of 9.0 (8.0) per cent was one percentage point higher than in the same period last year.
Strong growth and good performance in the Nordic region
“We are delighted with the growth in both turnover and operating profit for the quarter and the first half of 2021, and the operating margin reflects high activity levels and good project execution. It is pleasing to note continued positive development in the Nordic region, with both Norconsult Sweden and Norconsult Denmark delivering strong growth and good results improvements. It is also satisfying to confirm that our subsidiary Technogarden, which made a loss in the first half of 2020, is now returning healthy and solid profits,” says Norconsult Group CEO, Egil Hogna.
High activity levels and exciting projects
At the end of the first half of the year, the Group had a good order backlog and high activity levels in most areas.
Norconsult was recently informed that it will be one of two Norwegian consultancy firms to be included in the Sotra Link consortium that will be responsible for the Sotra Connection. Norconsult will be responsible for engineering design for the Sotra Bridge – a four-lane suspension bridge with a separate pedestrian and cycle path. The Sotra Connection is the largest fixed-price transport contract ever awarded in Norway. Norconsult will continue to play a central role in the engineering design of the Drammen–Kobbervikdalen infrastructure project, where construction has started. The company is also contributing to the large, interdisciplinary Stubberud Elbusdepot engineering design project. The project, which will deliver charging stations for 150 electric buses, is the largest of its kind in the Nordic region. Norconsult was recently awarded the contract to provide engineering design services for the construction of a new Alvim treatment plant for Sarpsborg municipality, a project where innovation, sustainability and digitalisation will be key elements. In Trøndelag, Norconsult will provide engineering design services and contribute to the electrification of the Trønder and Meråker Line, in an EPC contract together with NRC Group for Bane NOR. In the same county, Norconsult will also provide engineering design services for a new Centre for Mental Health together with OEC Metier and Nordic. On 2 July, the Opera Beach in Oslo was opened, where Norconsult has been responsible for landscape architecture.
In Sweden, Norconsult has been awarded a framework agreement for all regions by the Swedish Transport Administration, which is an important project for Norconsult’s largest client in Sweden. The Swedish Transport Administration has also shown its confidence in Norconsult by continuing the company’s involvement in the Mälaren Line Project, one of Norconsult Sweden’s largest projects. In the second quarter, the Swedish business also strengthened its expertise in bridge engineering and railway technology. The Swedish business continues to grow and now employs almost 1,000 staff.
In Denmark, the successful collaboration with DTU (Technical University of Denmark), where Norconsult has recently provided engineering design services and built two new educational buildings, is continuing. With the acquisition of RUBOW Architects, Norconsult Denmark is now a consultancy firm with an equal mix of architects and engineers. As a result, we can perform more and more and larger assignments for our clients. In Copenhagen, Norconsult is also playing a key role in the engineering design of Kødbyen’s School in Vesterbro.
In Nepal, the Upper Tamakoshi Hydroelectric Project, Nepal’s largest hydropower plant, will enter commercial operation during September. Norconsult has been engaged on the project since the feasibility study in 2003. Together with Norconsult Astando AB, Norconsult Information Systems (NoIS) has won a contract to provide system support for road maintenance for ten county authorities, a solution that will be rolled out before the end of the year.
Elite European talent
In June, Norconsult’s Tor Martin Lystad won second prize in the prestigious EFCA Future Leaders competition to find Europe’s most talented engineers. Lystad also received his doctorate in bridge engineering at the start of the summer.
In May, Norconsult organised The Sustainability Week, featuring a total of 12 webinars on sustainable solutions and developments in construction. Approximately 4 000 people enrolled for the event. During The Arendal Week, Norconsult directly contributed to four events.
So far in 2021, the Norconsult Group has acquired the companies Pecom AS in Flekke, Bothnia VVS Ingenjörer AB in Luleå, AG Plan og Arkitektur AS in Ørsta, the business of Citiplan AS in Larvik, Rubow Arkitekter in Copenhagen, JAF Arkitektkontor in Gjøvik and KMV forum AB in Stockholm. Norconsult in Sweden has also strengthened its expertise in railway technology by acquiring the track and railway technology business of the company Projektengagemang (PE).
* Norconsult converted a B share scheme in Norconsult AS to a salary bonus scheme with effect from 2020. The decision was made by the shareholders in connection with the preparation of the 2020 annual financial statements. EBITA for the first half of 2020 has been adjusted by NOK -59 million to reflect this and provide an equal basis for comparison between 2021 and 2020.