Aug 14, 2018

NRC GROUP – SECOND QUARTER 2018 RESULT REPORT AND PRESENTATION

Continued revenue and EBITDA growth

Today, 14 August 2018, NRC Group has released its financial results for the second quarter of 2018.

The company will present the results at 12.00 PM (CET) at Arctic Securities offices, Haakon VIIs gt.5, 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 figures Q2 2018:

-       Revenues of NOK 827 million in 2018, an increase of 42%

-       EBITDA of NOK 65 million in 2018, an increase of 51%

-       Order backlog of NOK 3,178 million, an increase of 30%

Key figures first half 2018

-       Revenues of NOK 1,355 million in 2018 vs NOK 922 million in 2017

-       EBITDA of NOK 67 million in 2018 vs NOK 49 million in 2017

-       Order intake totalled NOK 2,295 million an increase of 39% from same period last year

Subsequent events:

-       Sustainability requirements create new business opportunities

  • Entering decommissioning market

-       Acquisition of NSS Holding AS

  • Sole shareholder of Norsk Saneringsservice AS
  • Owner of 70% of the outstanding shares in Miljøvakta AS

Comments on second quarter 2018 results:

NRC Group had another strong quarter with solid revenue and profit growth.

Second quarter revenue was NOK 827 million, an increase of 42% compared with the same period in 2018. The organic growth was 19%. EBITDA was NOK 65 million, compared to NOK 43 million in the same period last year. EBITDA margin was 7.9% (7.4%).

Revenue for the first six months of 2018 was NOK 1,355 million, an increase of 47% from the first half of 2017. The organic growth was 18% and EBITDA amounted to NOK 67 million (NOK 49 million). Project execution in first quarter was affected by the severe winter, which inflicted additional cost.

New contracts for the second quarter totalled NOK 568 million (NOK 1,175 million) and the backlog amounted to NOK 3,178 million at the end of June, an increase of 30% compared to last year. Approximately 40% of the backlog is estimated for production in 2018.

The second quarter order intake included a NOK 80 million contract for ground, foundation and construction work in Arendal, Norway, and a SEK 128 million contract for railway renewal between Kävlinge and Arlöv in Sweden. New orders also included the 20% proportionate share of the SEK 823 million contract awarded to the joint venture between NRC Group, Astaldi and Gülermak for groundwork for a cut and cover tunnel on Project Kvarnberget in Gothenburg.

Order intake for the first half year of 2018 was NOK 2,295 million, an increase of 39% from the same period last year.

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.

The Swedish Government approved the National Transport Plan in June, confirming a 20% increase in investments to develop new railway infrastructure and a 47% growth in maintenance and renewal spending for the new plan period compared to the previous NTP.

In April, Mats Williamson was elected new board member by the AGM with effect from 1 July. In June, Hans Olav Storkås was appointed new managing director for NRC Norway AS.

Environmental aspects have had high priority in NRC Group since inception. There is an increasing emphasis on sustainability and environmental solutions in regulatory requirements and project tenders.

NRC Group is in process of acquiring NSS Holding AS, including 100% of the shares in Norsk Saneringsservice AS and 70% of the shares in Miljøvakta AS. The acquisition strengthens NRC Group’s operations and services in Norway with additional decommissioning and remediation expertise and capacity.

The second 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.

Contact us

Henning Olsen

Henning Olsen

CEO

+47 91 74 15 92

henning.olsen[at]nrcgroup.com

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