Multiconsult ASA second quarter 2016: Good earnings and improved order backlog
Oslo, 23 August 2016 – Group net operating revenues increased by 27.5 per cent to NOK 710.9 million, compared to the same quarter last year. The increase in revenues was mainly driven by NOK 94.2 million from LINK arkitektur AS, higher activity, and improved billing ratio to 70.9 per cent. A calendar effect of four working day increase in production compared to the same quarter last year impacted net operating revenues for Norwegian operations accordingly. Certain projects write-downs impacted net operating revenues negatively.
EBITDA for the quarter was NOK 92.0 million, an increase of 29.4 per cent compared to the same period last year. The increase is mainly explained by higher net operating revenues arising from the positive calendar effect, and contribution from LINK arkitektur AS. Higher operating expenses, which are in line with increased headcount, partly offset the positive effects.
“I am pleased to see that the organization continues to deliver solid results in a competitive market. The new Tønsberg hospital contract award is of significant size and strategic value to us and confirms Multiconsult and LINK arkitektur’s position in the hospital market”, says CEO of Multiconsult ASA Christian Nørgaard Madsen.
The order backlog improves at the end of the second quarter and was NOK 1 839.3 million, an increase of 15.0 per cent year on year. The increase is mainly driven by the large, strategic contract award for the new Tønsberg hospital, inclusion of LINK arkitektur AS on 30 September 2015 and solid growth from Transportation & Infrastructure. New contracts awarded during the quarter include the new hospital in Tønsberg, new bus transit lane in Stavanger, and Zanzibar energy sector support project among other. The majority of the order intake was related to new contracts, but important add-ons to and extensions of existing contracts such as Campus Ås and Radisson Blu Hotel Norge in Norway as well as Neelum Jhelum in Pakistan were also recorded in the quarter. Call-offs on frame agreements, such as the important Fosen wind project in Norway, are included when signed.
Group balance remains solid as of 30 June 2016 with total assets of NOK 1 279.3 million and total equity of NOK 315.7 million. The group had cash and cash equivalents of NOK 50.0 million, while net interest bearing debt was negative NOK 40.1 million, i.e. an asset.
The overall market outlook for 2016 remains fairly robust despite the slowdown in the Norwegian economy. Buildings & Properties is expected to have a modest, but stable growth. The outlook for the architecture market continues to be impacted by significant regional variations. Demand from the Oil & Gas industry is expected to continue at a low level as a result of lower oil prices and lower investment activity on the Norwegian continental shelf. Public sector investment is driving a strong outlook for Transportation & Infrastructure within road and rail. The Energy market remains strong in Norway, especially within transmission and hydropower. International renewable energy markets continue to grow, providing new business opportunities for Multiconsult.
Multiconsult’s strong market position, flexible business model and wide service offering provides a sound base for further growth, both domestic and international.
A presentation of the second quarter 2016 results will be held today, 23 August, at 09:00 CET at Felix Konferansesenter, Bryggetorget 3, 0250 Oslo. CEO Christian Nørgaard Madsen and CFO Anne Harris will hold the presentation.
A live webcast from the presentation can be accessed at www.multiconsult-ir.com and http://webtv.hegnar.no/presentation.php?webcastId=36209034
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
ABOUT MULTICONSULT ASA
Multiconsult is a leading Norwegian multidisciplinary engineering consulting company, with more than 2 200 employees and 45 offices in Norway and abroad. The Company focuses on seven market areas: Buildings & Properties, Transport & Infrastructure, Energy, Oil & Gas, Industry, Environment & Natural resources and Architecture. The Company has an operating history that spans more than a century, with the inception of Norsk Vandbygningskontor in 1908. In 2015 Multiconsult completed more than 9 000 projects for approx. 4 000 different customers.
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.