Q3 2021: Increased turnover and strong momentum for Norconsult in the Nordic region

22.November 2021

The Norconsult Group delivered solid turnover growth in the third quarter of 2021. Consolidated turnover closed on NOK 1,510 million for the quarter, compared with NOK 1,419 million in the same quarter last year (+ 6.4 per cent). EBITDA for the quarter came in at NOK 141 million, compared with NOK 161 million the previous year.

Norconsult CEO Egil Hogna
Norconsult CEO Egil Hogna

The comparative figures for the previous year have been adjusted to exclude salary bonus costs following the discontinuation of Norconsult AS’s B share scheme. The consolidated gross EBITA margin closed on 9.3 per cent (Q3 2020: 11.4 per cent). The fall in EBITA is attributable to slightly lower invoicing levels due to sickness absence as well as the lifting of coronavirus restrictions, which has resulted in increased travel activity, more social gatherings and courses and training activities. This is in line with expectations.

The Group delivered strong growth in both gross turnover and EBITA in the first nine months of 2021. At NOK 5,320 million (NOK 4,979 million), turnover was up on the same period last year, while EBITA of NOK 483 million was up NOK 35 million on the previous year’s figure of NOK 448 million.

Positive trend in the Nordic region continuing
 - I am satisfied with the results and it is gratifying to see that the positive trend is continuing at Norconsult Sweden, Norconsult Denmark and our subsidiary Technogarden. The operating margin so far this year of 9.1 per cent is on a par with last year and reflects a generally high level of activity and good contract execution. The order book is expanding in all our business areas and we believe that maintaining our local presence is an important and correct measure, says Norconsult CEO Egil Hogna.

Norconsult currently has just under 70 offices and workplaces in Norway and a total of 136 across the group.

Large and exciting projects
Norconsult Sweden is continuing to deliver strong growth and the company now employs more than 1,000 staff. Norconsult AB has strengthened its involvement in the Karlastaden project following the acquisition of NOCA Teknik AB, which has been responsible for project management. The company has opened a new office in Älvsjö, providing signal design engineering services. With this new addition, Norconsult now has 34 offices in Sweden, from Malmö in the south to Boden in the north.

In Sweden the company is also working on a project including planning a factory for the production of green hydrogen.

In the third quarter, Norconsult was 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 provide engineering design for the Sotra Bridge – a four-lane suspension bridge with a separate pedestrian and cycle path. The company is involved in the Helgerudkvartalet and Kommunegården projects – both in Sandvika. Norconsult is also involved in Construction City at Ulven in Oslo, where it has delivered the preliminary design for all HVAC disciplines and assisted with the VDC organisation for the engineering design process.

In Trøndelag, the company is currently planning engineering design services for the electrification of the Trønder and Meråker Line, under an EPC contract together with NRC Group for Bane NOR. The contract was awarded in the third quarter. Norconsult has also been awarded the construction management project for the Norwegian Armed Forces in Finnmark, under a two-year framework agreement, with options.

On October 1, Oslo public transport operator, Sporveien, signed a contract to provide engineering design for Majorstuen Metro junction with Dr. Ing. A. Aas‐Jakobsen and Norconsult, where the companies have merged to form a joint limited company. In September, Norconsult signed a four-year framework agreement with the City of Oslo’s Agency for the Urban Environment, to provide consulting and engineering design services for communal infrastructure in urban development areas in Oslo, with options. The company has been performing similar work in Hovinbyen since 2014 and in Ensjø since 2007.

Norconsult is currently involved in five major planning assignments; E6 Roterud–Storhove, E39 Outer Ring Road, E6 Korporalbrua Gyllan, E18 Western Corridor and E39 Flekkefjord Lund.

Reality series launched
In September, Norconsult launched the reality series “The Consultants”, where viewers can follow nine of the company’s consultants as they solve a diverse range of challenges and tasks. The series is available on social media. During the third quarter, Norconsult organised a number of major events at the Norwegian University of Science and Technology during the cultural festival UKA, including “Company of the Day” and the competition “Hunger Games”, where the winner was offered a job with Norconsult. For the second year running, Norconsult has been ranked Norway’s second-most attractive employer for professional engineers, as well as an industry leader in the “consulting engineer” category in the prestigious Universum Professional Survey.

So far in 2021, the Norconsult Group has acquired the companies Pecom AS in Flekke and Bothnia VVS Ingenjörer AB in Luleå, the operations of the companies AG Plan og Arkitektur AS in Ørsta, Citiplan AS in Larvik, Rubow Arkitekter in Copenhagen, JAF Arkitektkontor in Gjøvik, NOCA Teknik AB and KMV Forum AB in Stockholm, as well as the operations of Projektengagemang’s Tram and Railway technology team in Sweden.

Contact

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Kjetil Ekkeren
Senior communications advisor