Multiconsult ASA first quarter 2018
Oslo, 23 May 2017 - Multiconsult delivered an EBIT of NOK 36.1 million in a quarter significantly impacted by calendar effect of six less working days in Norway. The profitability improvement program is the number one priority and progress is on track with tangible improvements already seen in Regions Norway. LINK arkitektur continued to generate improved profitability and there was a group-wide improvement in the billing ratio to 70.6 per cent, up to a satisfactory level.
Group net operating revenues increased 7.4 per cent to NOK 859.1 million, compared to the same quarter last year. The increase in revenues was mainly driven by higher production due to the acquisition of the Hjellnes group and Iterio AB, as well as increased billing ratio to 70.6 per cent.
Growth in net operating revenues was partly offset by the negative calendar effect in the quarter, amounting to approximately NOK 70 million. Net project write-downs were at a relatively normal level in the quarter, at NOK 12.6 million, impacting net operating revenues and earnings negatively.
EBIT for the quarter was NOK 36.1 million, a decrease of 61.8 per cent compared to the same period last year. The decrease reflects higher net operating revenues, which were more than offset by higher operating expenses in the quarter, mainly due to the significant calendar effect. EBIT margin was 4.2 per cent. Adjusted for the calendar effect, EBIT margin was 11.3 per cent in the quarter.
"I am pleased to see that Multiconsult begins the year with a solid quarter. It is encouraging to see the effects of the profitability improvement program already tangible in Regions Norway as well as the successful improvement measures in LINK arkitektur that continue to generate higher profitability. The comprehensive reorganisation of The Greater Oslo Area is an important step to strengthen our business going forward. The systematic implementation of the profitability improvement program in Norway has a clear priority as an integral part of realising Multiconsult’s 3-2-1 GO strategy ambitions towards 2020, says CEO of Multiconsult ASA Christian Nørgaard Madsen.
Order backlog remains stable at the end of the first quarter at NOK 2 226.9 million, an increase of 13.2 per cent year on year. Order intake during the first quarter increased by 2.6 per cent to NOK 1 101.2 million. There were strong sales within Buildings & Properties, Transportation and Renewable Energy in the quarter.
Important new contracts this quarter were RV 3 and 25, as a subcontractor to Aas Jakobsen, for Skanska, as well as the bus lane Stavanger - Sandnes for Statens vegvesen. A significant new frame agreement was awarded for pre design of submarine maintenance facilities at Haakonsvern for Forsvarsbygg. Important add-ons to existing contracts this quarter were the New Airbase Ørland with Forsvarsbygg and Campus Ås for Statsbygg, as well as Kamuzu Barrage in Malawi.
As of 31 March 2018, total assets amounted to NOK 1 957.9 million and total equity of NOK 595.7 million. The group had cash and cash equivalents of NOK 151.7 million, while net interest bearing debt amounted to NOK 255.0 million.
The overall market outlook shows signs of positive development across all business areas, in line with industry consensus. However, there is continued strong competition and price pressure on larger projects.
Multiconsult is actively and systematically implementing the 3-2-1 GO strategy with clear emphasis on profitability.
A presentation of the first quarter 2018 results will be held today, 23 May, at 09:00 CET at Hotel Continental, Stortingsgaten 24/26, Oslo. The presentation will be held by CEO Christian Nørgaard Madsen and CFO Anne Harris.
A live webcast from the presentation can be accessed at www.multiconsult-ir.com and http://webtv.hegnar.no/presentation.php?webcastId=83490369
For further information, please contact:
Mirza Koristovic, Head of Investor Relations
Phone: +47 93 87 05 25
Gaute Christensen, VP Communications
Phone: +47 911 70 188
Multiconsult is a leading Norwegian multidisciplinary engineering consulting company, with more than 2 800 employees and 45 offices in Norway and abroad. The Company focuses on six business areas: Buildings & Properties, Transport, Renewable Energy, Oil & Gas, Industry and Water & Environment. The Company has an operating history that spans more than a century, with the inception of Norsk Vandbygningskontor in 1908.