NRC Group - First quarter 2018 result report and presentation
All-time high order intake
Today, 8 May 2018, NRC Group has released its financial results for the first quarter of 2018.
The company will present the results at 11.30 AM (CET) at Nordea Market’s office, Essendrops gate 7, 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:
- Record-high order intake of NOK 1,727 million, an increase of 126% compared to 1st quarter 2017
- Appointed largest-ever contract in Norway of NOK 402 million
- Entering a new and significant market by award of first maintenance contract in Sweden
Key figures Q1 2018
- Revenues of NOK 528 million in 2018 vs NOK 341 million in 2017
- EBITDA of NOK 2 million in 2018 vs NOK 6 million in 2017
- Order backlog of NOK 3,500 million
Subsequent events:
- Mats Williamsson, former excecutive in Skanska, was elected new board member at the AGM 19 April, effective from 1 July
- Dividend of NOK 1.75 per share approved by AGM and paid to shareholders 3 May
Comments on first quarter 2018 results:
NRC Group experienced an active start to 2018 with an all-time high order intake of NOK 1,727 million (NOK 477 million) for the first quarter. The order backlog amounted to NOK 3,500 million at the end of March, an increase of 126% compared to same period last year.
First-quarter revenue was NOK 528 million (NOK 341 million), an increase of 55% compared with the same period in 2017. EBITDA was NOK 2 million (NOK 6 million). The margins were affected by the severe winter in Norway and Sweden and start-up of large projects.
The increase in tendering activity late last year materialized into higher contracting activity and awards in both Norway and Sweden.
In the first quarter, NRC Group signed a NOK 402 million tramway contract with Sporveien in Oslo for upgrades to the Holtet base, which involves a wide range of specialist rail services such as track, electro and groundwork. This confirms the strategy to supply the entire value chain within rail infrastructure.
Further, NRC Group signed a SEK 273 million contract with The Swedish Transport Administration for expanding the freight line through Hallsberg to double track, involving rail services such as track, signal/telecom, electro and groundwork.
Additionally, NRC Group signed a five-year railway maintenance contract in Sweden for the area around Hallsberg. NRC Group will be responsible for preventive maintenance and corrective measures on the track lines, and the contract will involve rail services such as track, electro, signal and groundwork. The contract is valued at SEK 357 million and will commence in 2019. This is our first maintenance contract and by taking this step we are entering a new market in Sweden with SEK 5 billion in annual market size.
In Norway the high order intake reflects increased tendering and award activity, both in terms of number of and the size of contracts. Tendering activity remains high with increased focus on larger turnkey projects covering several special competencies in line with the strategic positioning executed by the company over the past few years. While further projects are expected to be awarded in 2018, execution of some of the larger projects will commence in 2019 and later.
In Sweden, the underlying market grows at a stable pace. Approval of the new NTP is expected in first half 2018 and will likely lead to further increased market activity.
NRC Group operates in a market driven by strong macro trends such as urbanisation, population growth and the need for environmentally sustainable transport solutions. The approved National Transport Plan (NTP) in Norway and the proposed NTP for Sweden give better visibility and confirm political commitment to increase spending on developing national transport systems and the shift towards larger turnkey projects. These indicate further growth to already historically high budgets and investments in years to come.
NRC Group is 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.
It is NRC Group’s ambition over time to distribute a dividend of minimum 30% of the profit for the year, subject to a satisfactory underlying financial performance. 19 April, the Annual General Meeting approved a dividend of NOK 1.75 per share for 2017, which was paid 3 May.
The first quarter 2018 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.
About NRC Group:
NRC Group is a leading contractor within railway infrastructure in Norway and Sweden. The company is a supplier of all track-related infrastructure services, including groundworks, specialized track work, safety, electro, telecom- and signalling systems. The company works within rail, metro, tram segments and close related infrastructure. NRC Group has experienced significant growth since its inception in 2011 and has a vision of becoming the leading Nordic entrepreneur within railway infrastructure.
For more information: www.nrcgroup.com
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.