Second quarter 2017: Continued high activity levels at Norconsult
Norconsult confirms buoyant activity levels in the second quarter of 2017 "We are encountering strong demand in the Nordic region, particularly in Transport and Buildings," explains CEO Per Kristian Jacobsen.
Norconsult posted total sales of NOK 1,142 million for the second quarter of 2017 (Q2 2016: NOK 1,159 million). The operating profit for the quarter came in at NOK 92.9 million (NOK 96.2 million), while the operating margin closed on 8.1 per cent (8.3 per cent). The reduction in sales is attributable to the timing of Easter in the last two years. In addition, the market remains demanding with regard to hourly rates throughout Scandinavia.
Sales for the first half of 2017 totalled NOK 2,294 million (2016: NOK 2,167 million), while the consolidated operating margin closed on 8.1 per cent. In the first half of the year sales growth came in at 5.9 per cent and the operating margin rose by 0.2 percentage points.
"All our Norwegian offices are experiencing high activity levels, and we also achieved solid growth in Sweden and Denmark in the first six months of the year. We made several strategic acquisitions in the period in order to secure complementary expertise for the company, and exciting projects are underway in all our market areas. We are in particular encountering strong demand for our services in Transport and Buildings," confirms Jacobsen.
Four acquisitions in the period
Norconsult has a high percentage of interdisciplinary projects, and continually strives to strengthen its service offering to clients and partners. Since the start of 2017 Norconsult has acquired Leiv Næs Arkitekter in Stavanger, Faaland Arkitekter in Bergen and Kon-Sul in Ryfylke. Since 1 July the Icelandic company ARA Engineering, which specialises in power transmission, has been an integral part of Norconsult's business. In Denmark Norconsult passed the 100-employee mark in the first half of the year.
Broad range of interdisciplinary projects
During the first half of 2017 Norconsult was awarded the contract to renovate Førde hospital. In Sweden Norconsult AB, with its partner Semrén & Månsson, was commissioned to design a new hospital in Gothenburg. The company is also attracting attention in the R&D sector: In January Norconsult was awarded a NOK 8.4 million grant to develop energy-optimal integrated solutions for healthcare centres under the Research Council of Norway's EnergiX programme.
In May the company held its first "Community Conference", at which 350 guests were presented various projects involving Norconsult, including the joint Ringerike Line and E16 project, Nedre Otta Power Plant and the DiVA digital water and sewage management project. The event received extremely positive feedback.
Major projects in which the company has been engaged during the period include the joint Ringerike Line and E16 project, the Greater Oslo Network Plan, the Tønsberg–Skien and Drammen–Kobbervikdalen Intercity projects, and the E18 Tvedestrand–Arendal and E39 Rogfast, E39 Eiganes sub-sea tunnel and RV 13 Ryfast road projects.