Third quarter 2019: Norconsult continues upward trend
In the third quarter of 2019, Norconsult posted revenues of NOK 1,314 million – an increase of 8.8 per cent on the same period in 2018. The operating profit closed on NOK 132 million, compared with NOK 94 million in the third quarter of 2018.
Underlying organic growth in gross revenues in the third quarter of 2019 came in at around 11 per cent. At NOK 85 million, the Nordics posted the highest individual quarterly increase in revenue compared with same period in 2018.
Norconsult’s year-to-date revenues for 2019 total NOK 4,472 million, compared with NOK 3,776 million for the first nine months of 2018. This represents an increase of NOK 696 million or 18.4 per cent, with organic growth contributing 11 per cent. The operating profit for the period amounted to NOK 367 million (2018: NOK 298 million) and the operating margin for the year to date is 8.2 per cent (2018: 7.9 per cent).
The growth in revenues is due to acquisitions, recruitment and high activity levels.
High activity levels and solid growth
“Client value is the key driver of Norconsult’s strategy, while digitalisation, sustainability and collaboration represent further important focus areas. We are delighted that the strategy is contributing to profitable growth for both our clients and Norconsult. Given our ambitions for growth in the Nordic region, it is even more pleasing to see a significant part of this revenue growth coming from Sweden and Denmark. We have successfully integrated several acquisitions, while continuing to generate organic growth,” confirms Norconsult CEO Per Kristian Jacobsen.
In the third quarter, Norconsult acquired Norway’s largest independent electrical engineering consultancy company (ECT AS), which employs 115 staff. The acquisition will strengthen Norconsult’s electrical engineering and project execution capability. Norconsult has also reinforced its architectural arm in Tromsø through the acquisition of Borealis Arkitekter AS. The company has additionally strengthened its interdisciplinary competence in Eastern Norway through the acquisition of the Jessheim-based Øvre Romerike Prosjektering AS, while the acquisition of SK Langeland AS strengthens Norconsult’s presence in Rogaland and Ryfylke. Earlier in the year, Norconsult boosted its architectural capability in both Denmark, through the acquisition of KHS Arkitekter A/S, and in Iceland, as a result of the acquisition by Norconsult subsidiary Nordic of Arkthing EHF. Another Norconsult subsidiary, Technogarden, which is active in the recruitment industry, has acquired Ildne AS in Bergen and Technical Resources AS in Kristiansand.
Good momentum in the quarter
In the third quarter, Norconsult won and was involved in several large, important projects. Together with Peab and Nordic, Norconsult is refurbishing and developing Eikeli upper secondary school at Hosle in Bærum. The company has also secured two framework agreements with the Norwegian Directorate of Public Construction and Property (Statsbygg) to provide technical condition assessments for all Statsbygg’s buildings in Central Norway and Oslo. In September, Norconsult Informasjonssystemer signed an agreement with the Norwegian Public Road Administration to deliver a cloud-based solution to manage project finances.
In Norway, Norconsult is playing an important role in engineering design for the New Bodø Airport. The company is also providing engineering design for the Intercity rail section between Drammen and Kobbervikdalen. Norconsult has recently established a firm foothold in the hospital market and is currently providing engineering design services for a number of hospital buildings, including the new proton building at the Norwegian Radium Hospital in Oslo and for Hammerfest hospital. The company is also involved in the work on Bergen Light Rail and in the continuing work on the new E39 between Kristiansand West and Mandal East. On 18 September, Norwegian Prime Minister Erna Solberg officially opened Norway’s largest run-off river plant, Vamma 12 in Østfold. Norconsult has been the designer and architect for this paperless project.
On 12 July, Mörbylånga Waterworks in Sweden was officially opened. Here, Norconsult has provided engineering design for a unique water purification method to provide drinking water for the residents of Southern Öland. Norconsult is also playing a key role in engineering design for a new water tower in Varberg. In Denmark, the company is well underway with engineering design for the Technical University of Denmark’s Wind Energy Institute, as well as a new research building for the same university’s Environment department.
Norconsult 90 years: Giving something back to society
To celebrate the company’s 90-year anniversary in 2019, Norconsult got involved in Norwegian broadcaster NRK’s telethon “TV-aksjon” to raise funds for international charity CARE. The company made a donation of one million Norwegian kroner, while individual employees also signed up to support the TV initiative.