Aug 15, 2017

NRC Group ASA - Second quarter 2017 result report and presentation

Today, 15 August 2017, NRC Group ASA has released its financial results for the second quarter of 2017.

Below you will find a summary and highlights from the report.

The company will present the results at 11.00 AM (CET) at Arctic Securities offices, Haakon VIIs gate 5, Oslo. The presentation will be held by CEO Øivind Horpestad and CFO Dag Fladby.

Key events:

-       Record-high order intake of NOK 1231 million

-       Adding groundwork and project management expertise by acquiring ALTi Bygg og Anlegg AS

-       Initiated and executed new share buyback programme

Key figures Q2 (Reported figures ex. SBB and ALTi):

-       Revenues of NOK 581.6 million in 2017 vs NOK 503.6 million in 2016

-       EBITDA of NOK 43.0 million in 2017 vs NOK 22.9 million in 2016

-       EBITDA margin of 7.4% in 2017 vs 4.5% in 2016

-       Order backlog of NOK 2,451 million, an increase of 52% vs 2016

Key figures first half 2017 (Reported figures ex. SBB and ALTi)

-       Revenues of NOK 922.5 million in 2017 vs NOK 823.4 million in 2016

-       EBITDA of NOK 49.0 million in 2017 vs NOK 23.8 million in 2016

-       EBITDA margin of 5.3% in 2017 vs 2.9% in 2016

Contract wins:

-       Historically largest contract win of SEK 700 million for groundwork related to Haga Station in Gothenburgh confirms strategy to position for larger contracts has been successful

-       Appointed to SEK 155 million groundwork contract for new road between Dala-Järna and Vansbro

-       Appointed to SEK 172 million contract for track renewal at Alingsås in Sweden

-       Appointed to SEK 47 million contract for ground and catenary foundation work at Gällivare- Kiruna

Comments on second quarter and first half 2017 results:

NRC Group delivered a quarter with revenue reflecting the normal seasonal increase in activity. Revenue was NOK 581.6 million in the quarter, which is an increase of 15.5% compared with the second quarter of 2016. EBITDA was NOK 43.0 million, compared with NOK 22.9 million in same period last year. This equalled an EBITDA margin of 7.4% (4.5%).

Revenue for the first six months of 2017 was NOK 922.5 million, an increase of 12.0% from the first half of 2016. EBITDA was NOK 49.0 million (NOK 23.8 million) and the EBITDA margin was 5.3% (2.9%). Sweden is performing well, as well as most of the companies in Norway. However, we are not satisfied with the performance in NRC Rail and further measures will be taken to improve the operational performance.

Order intake for the second quarter amounted to NOK 1,231 million and the backlog was NOK 2,451 million at the end of June, which is the highest order backlog ever for NRC Group. The company won its historically largest contract in the quarter valued at SEK 700 million for groundwork related to the Station Haga project in Gothenburg. NRC Group will execute the contract in a consortium with leading European contractors. The second-largest contract won in the quarter, also from The Swedish Transport Administration (Trafikverket), was for track renewal at Alingsås worth approximately SEK 172 million. The contract involves a wide range of rail services such as groundwork, track, electro and signal/telecom, confirming NRC Group’s position as a turnkey railway entrepreneur.

On 29 June, NRC Group announced the acquisition of ALTi Bygg og Anlegg AS. The company has employees with extensive experience from project management and previous leading positions within AF Gruppen. The acquisition of ALTi will further strengthen the competitiveness of NRC Group's Norwegian operations in the growing rail infrastructure market where project management, ground and construction expertise is key. The project management expertise from ALTi, will complement the existing knowhow and capacity of NRC Group. It will further strengthen NRC Group's overall capabilities, enabling the company to undertake larger and more complex projects also simultaneously. 

The acquisition of HAG Anlegg closed in beginning of April, while the SBB and ALTi acquisitions were closed in the beginning of July.

All the acquisitions are in line with NRC Group’s strategy of building competencies as a turnkey railway entrepreneur and to consolidate the market for rail, tram and metro construction services.

NRC Group completed the adjustment to workforce in NRC Rail AS initiated in the first quarter to focus on project management capabilities, and harmonise the group’s organisational and business structure. The process affected approximately 40 employees.

At the end of March and at 11 May, NRC Group initiated a share buyback programme of up to NOK 20 million. The acquired treasury shares may be used as consideration shares for acquisitions and for the company’s employee share programme.    

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. A dividend of NOK 0.80 per share for 2016 was paid to shareholders in May.

The positive investment outlook for the Nordic railway is supported by strong macro trends and political commitment. The new Norwegian National Transport Plan for the next 12-year period, approved by Parliament on 19 June, and the proposed National Transport Plan in Sweden reaffirm the political commitment to increased railway spending.

NRC Group is committed to its strategy to consolidate the market and deliver organic and acquired growth in coming years.

The second quarter and first half 2017 result report and result presentation can be found attached and will be made available on the company's homepage:

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: 

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

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Henning Olsen

Henning Olsen


+47 91 74 15 92

  • NRC Group ASA Q2 2017 Result report
  • NRC Group ASA Q2 2017 Result presentation

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