Oslo, 8 November 2016 – Group net operating revenues increased by 13.9 per cent to NOK 554.4 million, compared to the same quarter last year. The increase in revenues was partly driven by LINK arkitektur and higher production from an increased workforce in Norway. The billing ratio remained stable at 67.7 per cent. Billing rates are at a similar level as last year and the first two quarters of 2016.
EBITDA for the quarter was NOK 45.6 million, a decrease of 18.7 per cent compared to the same period last year. The decrease is mainly explained by higher operating expenses, which more than offset the higher revenues in the quarter. The higher operating expenses were caused by increased workforce and salary adjustment.
“I am pleased to see that we are continuing to grow our revenues and improve our international business. The third quarter is traditionally a challenging quarter due to the summer holidays. The lack of increase in billing rates and rising salaries in Norway is a challenge in the industry and this underpins our choice of strategic direction in the updated 3-2-1 GO strategy, presented on the capital markets day in October”, says CEO of Multiconsult ASA Christian Nørgaard Madsen.
The order backlog remains strong at the end of the third quarter and was NOK 1 652.0 million (NOK 1 732.3 million), a decrease of 4.6 per cent year on year. LINK arkitektur increased by 75.2 per cent year on year mainly due to Tønsberg Hospital contract, which was awarded in the second quarter this year. Transportation & Infrastructure remained stable, while other business areas declined.
Order intake during the third quarter decreased to NOK 466.1 million (NOK 665.4 million), due to the absence of major contract awards and limited tender flow in the Transportation & Infrastructure sector. Important additions this quarter were add-ons to Follobanen and call-offs on Mongstad frame agreement in Norway as well as add-ons to Neelum Jhelum in Pakistan. Among the new contracts this quarter was the new pedestrian- and bicycle pathway between Begby and Borge schools in Norway. Call-offs on important frame agreements, such as the Vestre Viken Hospital and the Fosen wind project in Norway, are only included in the order backlog when signed.
Group balance remains solid as of 30 September 2016 with total assets of NOK 1 223.0 million and total equity of NOK 362.0 million. The group had cash and cash equivalents of NOK 116.8 million, while net interest bearing debt was negative NOK 74.9 million, i.e. an asset.
The overall market outlook for 2016 remains fairly robust despite the slowdown in the Norwegian economy. Current market rates have stabilised, however the continued increase in salaries for the Norwegian workforce has lead to challenging profitability for the industry in general.
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 third quarter 2016 results will be held today, 8 November, at 09:00 CET at Hotel Continental, Stortingsgaten 24/26, 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=40092108
For further information, please contact:
Mirza Koristovic, Head of Investor Relations
Phone: +47 93 87 05 25
Gaute Christensen, VP Communications
Phone: +47 91 17 01 88
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, Transportation & Infrastructure, Renewable 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 disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.