Second quarter 2018: Sales growth and improved profits

14.September 2018

In the second quarter of 2018, Norconsult posted sales of NOK 1.3 billion, compared with NOK 1.14 billion in the comparable prior-year period. The second-quarter operating profit came in at NOK 114 million, compared with NOK 93 million in the same quarter in 2017. The operating margin for the second quarter closed on 8.7 per cent, compared with 8.1 per cent in the second quarter of 2017.

CEO Per Kristian Jacobsen is delighted with Norconsult’s revenue growth and improvement in profits in the second quarter of 2018.
CEO Per Kristian Jacobsen is delighted with Norconsult’s revenue growth and improvement in profits in the second quarter of 2018.

At NOK 2.57 billion, sales for the first six months of 2018 were up 12 per cent on the comparable previous year figure of NOK 2.3 billion. The underlying operating profit for the first half-year totalled NOK 204 million, compared with NOK 185 million in the first half of 2017. The underlying operating profit excludes a gain from the sale of the property in Vestfjordgaten 4 in February 2018.

“We are delighted to have achieved growth in both the top and bottom line in the second quarter. There is tough competition in the market and prices are continuing to come under pressure. We are achieving growth both organically and through acquisitions, and enjoying high activity levels in most markets. Growth is particularly strong in the Nordic region,” explains CEO Per Kristian Jacobsen.

In the first half-year, Norconsult purchased the companies Nordic – Office of Architecture, Monarken, Fundator, Sivilingeniør Anders Overrein AS, Tind & Tyri arkitekter AS and Arkitektene Berg og Østvang AS.

In September, Norconsult strengthened its position in Denmark through the acquisition of the Danish consultancy firm KAAI – Kærsgaard & Andersen A/S. The acquisition reinforces Norconsult’s expertise and capacity in social housing and public sector construction projects in Denmark.

Good tempo in second half-year

“We have made a good start to the second half of the year, winning several important major projects. The right expertise and ability to listen to our clients combined with smarter work processes have helped improve Norconsult’s competitiveness in recent years,” explains Jacobsen.

The company recently successfully tendered for the project design phase of the new Bodø Airport project. The project is one of the largest transport and infrastructure contracts ever awarded in Norway. In addition, Norconsult, as part of a joint project team, was awarded the pre-project for the new Hammerfest hospital. Together with AF Gruppen, Norconsult has also been invited to the clarification phase for the construction of the E39 Coastal Highway Route between Kristiansand West and Mandal East.

Other major projects the company is currently working on include Bispevika, E18 Arendal-Tvedestrand, the joint Ringerike Line and E16 project, InterCity Drammen-Kobbervikdalen, Carpe Diem Dementia Village, Voldsløkka School, Tolga Power Plant and Johan Sverdrup Phase 2.

Norconsult is also actively contributing to the public debate. During Arendal Week, a gathering of politicians and organisations from across the country, the company arranged a debate on management of goods flows between the sea and railways. In August, the then Norwegian Minister of Transport and Communications Ketil Solvik-Olsen visited Norconsult to learn more about how the consultant engineer industry is using new solutions to implement the National Transport Plan.

On 25 September Norconsult will be arranging the 2018 Community Conference in Bærum Cultural Centre. The topic for the year is “Green Horizons – The Road to the Future.” The conference will examine how well we understand what we will live on in the future, and how we will live.