NRC Group ASA – Third quarter 2017 result report and presentation

Record results, solid order intake and strong market outlook

Today, 7 November 2017, NRC Group has released its financial results for the third quarter of 2017.

The company will present the results at 11.30 AM (CET) at Carnegie offices, Fjordallèen 16, Aker Brygge, Oslo. The presentation will be held by CEO Øivind Horpestad and CFO Dag Fladby.

Below you will find a summary and highlights from the report.

Key events:

-        All time high quarterly revenue and EBITDA

-        Record EBITDA margin driven by strong project execution

-        Closed acquisitions of ALTi and SBB

-        Subsequent acquisition of Norwegian fiber specialist Fibertech 

Key figures Q3:

-        Revenues of NOK 776.5 million in 2017 vs NOK 599.9 million in 2016

-        EBITDA of NOK 110.5 million in 2017 vs NOK 81.2 million in 2016

-        EBITDA margin of NOK 14.2% in 2017 vs NOK 13.5% in 2016

Order intake:

-        Order backlog of NOK 2,417 million, an increase of 73%

-        Order intake of NOK 642 million

-        Six announced contracts during the quarter

Comments on third quarter 2017 results:

NRC Group delivered all-time high revenue and EBITDA and record EBITDA margin in the third quarter, reflecting high activity during the peak season and a continued strong project execution. 

Revenue was NOK 776.5 million in the quarter, an increase of 29.4% compared with the third quarter 2016. EBITDA was NOK 110.5 million, compared with NOK 81.2 million in the same period last year. This equalled an EBITDA margin of 14.2% (13.5%). The Swedish operations performed strong this quarter in terms of EBITDA and EBITDA margin. The strong margin is due to a favorable project mix and excellent project execution. A new management team has been in place in Norway from September, and the team has strong focus on improving the operational performance.

Order intake for the third quarter was NOK 642 million and the backlog amounted to NOK 2,417 million at the end of September. In the third quarter, NRC Group signed a contract in Norway worth NOK 155 million for groundwork at the Ullevål crossroads in Oslo and a NOK 122 million contract for port infrastructure upgrades on the Brekstad-Valset ferry line. In Sweden, NRC Group was awarded a SEK 87 million contract for groundwork, track, electro and signal/-telecommunication related to the rebuilding of the terminal C at Södertälje in Stockholm.

The acquisitions of ALTi Bygg og Anlegg AS and Signal and Banbyggarna i Dalarna Aktiebolag were both closed in early July.

In October, NRC Group acquired Fibertech AS. The acquisition strengthens NRC Group’s competencies within fibre optic lines ahead of the upcoming EMRTS development in both Norway and Sweden.

NRC Group continues its proactive and high acquisitions activity in line with NRC Group’s strategy. The recent acquisitions have provided NRC Group with additional expertise and capacity as a turnkey railway and ground entrepreneur, which has been reflected in recent contract awards. These competencies positions NRC Group for larger upcoming contracts in its core market, while also providing flexibility to utilize capacity on a wider range of transport infrastructure projects.

The positive investment outlook for the Nordic railway and other transport infrastructure is supported by strong macro trends and political commitment. The approved National Transport Plan (NTP) in Norway and the proposed NTP for Sweden give better visibility and confirm the commitment to increased railway spending and shift towards larger projects.

NRC Group continues to be uniquely positioned to benefit from the strong macro outlook, and is committed to its strategy to consolidate the market and to deliver good organic growth in the coming years.

The third quarter 2017 result report and result presentation can be found attached and will be made available on the company's homepage: www.nrcgroup.com.

For further information, please contact Dag Fladby, Chief Financial Officer, NRC Group ASA on tel: +47 90 89 19 35.