Second quarter 2019: Strong performance and continued top-line growth for Norconsult
In the second quarter of 2019, Norconsult posted sales of NOK 1,538 billion, compared with NOK 1,306 billion in the same period last year. The second-quarter operating profit amounted to NOK 108 million, compared with NOK 113 million in the second quarter of 2018. The operating margin for the quarter came in at 7.0 per cent, compared with 8.7 per cent for the same period the previous year.
Norconsult’s first-half sales for 2019 came in at NOK 3.159 billion, compared with NOK 2.569 billion for the same period last year. This represents an increase of almost 23 per cent. The first-half operating profit was NOK 235 million, compared with NOK 204 million in the first half of 2018. The first-half operating margin was 7.4 per cent, compared with 7.9 per cent for the first half of 2018.
The reduced operating margin is mainly attributable to the amortisation of goodwill relating to acquisitions. The first-half margin is in line with the same period last year before goodwill amortisation.
Profitable growth in the Nordic region
“We are really pleased to deliver profitable growth throughout the Nordic region. The level of activity is high and we have a number of large projects under way, in addition to having signed several new contracts in the second quarter. We also made several acquisitions in the first half of 2019 while continuing to grow organically,” explains Norconsult CEO, Per Kristian Jacobsen.
Norconsult acquired Kjeller Vindteknikk in the first half of 2019, boosting its momentum in wind power and wind data analysis in the Nordics. The acquisition of Heyerdahl Arkitekter has further strengthened the company’s position within the Norwegian architecture sector. The acquisition of Arkthing EHF has also strengthened Norconsult (Nordic) within the Icelandic architecture industry. Norconsult’s subsidiary, Technogarden, further acquired the Norwegian companies Ildne AS in Bergen and Technical Resources in Kristiansand during the first half of 2019. Norconsult has also recently purchased the company Øvre Romerike Prosjektering AS, which will be incorporated into Norconsult from 1 October. In Sweden, Norconsult acquired Miljökemigruppen AB, Bitcon AB and Johnels & Moberg Arkitekter during the first six months of the year, while the acquisition of KHS Arkitekter A/S has further strengthened Norconsult’s presence within architecture in Denmark.
Strong momentum in H1
In the first half of 2019, Norconsult won and was involved in several large, important projects.
In the first six months of the year, Norconsult was awarded the contract to provide detailed regulation and an environmental impact assessment of the new Herdal–Røyskår section of the E39 Coastal Highway Route, in Lyngdal Municipality – a highly demanding project in terms of delivering sustainable solutions and digitalisation. Norconsult was also awarded the contract to carry out the pilot study on the new University of North Norway hospital in Narvik, which is an ongoing project. In the first half of the year, Norconsult was also commissioned to design a new clinic and proton building at the Norwegian Radium Hospital in Oslo, for which the initial phase of the pilot study was recently delivered.
Among the current projects in Norway, Norconsult has a key role in designing the new Bodø Airport and Bergen Light Rail. Norconsult is also heavily involved in the planning and design of the Kristiansand Vest–Mandal Øst section of the E39 Coastal Highway Route and the InterCity Drammen–Kobbervikdalen railway project. Norconsult is also engaged in the project planning of the new Central Station in Oslo, which will house a new main fire station, as well as a new operating station and administration building for Oslo Water and Sewerage Works.
In Denmark, Norconsult is working on the design of two buildings set to house research laboratories and workshops for DTU Wind Energy (the Technical University of Denmark’s research institute in Roskilde). In Iceland, Norconsult has been awarded framework agreements with Energinet DK in connection with high-voltage power lines, while in Sweden, Norconsult has won an exciting framework agreement to deliver architectural services for Volvo Cars.
Several impressive projects were also completed in the first half of the year. In Norway, these include the new E18 route between Tvedestrand and Arendal, which was opened at the beginning of July – four months ahead of schedule. Norconsult designed the entire 22 km stretch. In April, Norway’s state-of-the-art road tunnel, Bodø Tunnel, was opened. Norconsult has played a central role in the design of this project. Britannia Hotel in Trondheim opened in April, following three years of renovations, during which Norconsult was responsible for landscape architecture and design.
In June, Norconsult AS secured ISO certification for its management system. Awarded by DNV GL, the ISO 14001 certification sets out the criteria for environmental management systems. The company’s quality management systems are already certified to ISO 9001.