Photo: Einar Aslaksen

Third quarter 2017: Solid growth in operating revenues and improved profits

Gross operating revenues increased by 9,7 % to NOK 913 million compared to the same quarter last year. The operating profit for the quarter was NOK 101 million (NOK 82 million), while the operating margin closed on 11.1 %. During the third quarter, the company completed three acquisitions: Skovhus Arkitekter, BrannSafe and ARA Engineering.

Year to date Gross operating revenues was NOK 3.2 billion, an increase of 6.9 % compared to the same period last year. The total operating profit to date this year comes in at NOK 286 million (compared to NOK 254 million in 2016). The YTD operating margin is 8.9 %, up from 8.5 % over the same period in 2016.

“We are pleased to have achieved solid growth in earnings in a market where the competition is tough and the hourly rates are under pressure. We are experiencing high activity levels in many of our market areas,” says Per Kristian Jacobsen, CEO of Norconsult.

Three acquisitionsDuring the third quarter, Norconsult acquired the consultancy company BrannSafe AS, thus reinforcing its skill base in the field of fire protection advisory services. In addition, the company acquired ARA Engineering, and strengthened its position in the energy and power transmission market. ARA Engineering supplies services in the field of high voltage technology, comprising power cables, cable installations and transformer stations. With the acquisition of ARA Engineering, Norconsult is now represented on Iceland and in Poland. The third quarter also saw Norconsult complete its acquisition of Skovhus Arkitekter, a Danish firm of architects. Adding Skovhus Arkitekter, Norconsult strengthen’s its position providing interdisciplinary consultancy in the Danish market.

Many new projects

Even though the market is demanding, Norconsult won many new contracts the last monts. For example, the company won a contract with Asker og Bærum Vannverk IKS (ABV) regarding execution of a preliminary project for a new water treatment plant, and project planning responsibility for AF Gruppen for its project in Bispevika in Oslo. Norconsult has also been commissioned to work on water treatment plants for the Municipality of Ringsaker – Mesna and Moelv – as well as to handle electrification of ferry terminals in Western Norway for Fjord 1, and to participate in the Sjøfronten 1 project in Molde.

More skilled staff

Norconsult recruits more than 250 new employees annually, and currently provides full-time employment for over 3,100 people. The company recently organised the “Heads for Tomorrow” recruitment campaign in Trondheim in Norway. The campaign is designed to help boost Norconsult’s reputation and to increase interest in the company among recently graduated students. In addition, Universum has named Norconsult one of the most attractive workplaces in Norway among engineers.

All figures in NOK ’000. Q3 2017 YTD 2017 Q3 2016 YTD 2016
Sales 913 3,206 832 2,998
Operating profit 101 286 82 254
Operating margin in % 11.1% 8.9% 9.8% 8.5%