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Endúr Interim / Quarterly Report 2010
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Interim / Quarterly Report
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BERGEN GROUP
Interim Report for Q1 2010
Improved profit margin in the first quarter
Bergen Group had an improved profit margin in the first quarter 2010 compared with the same period last year. The turnover has been reduced because of less activity in parts of the group's business areas. The contract with Fjord Line for the building of two modern cruise ferries is expected to be finalized within short time. This contract will strengthen the group's position in a RoPax market with growth potential, and will be an important contribution to further development of Bergen Group ShipDesign.
The overall market prospects have improved during the quarter. Bergen Group expects both growth and a stronger market position for the group's offshore related activities.
Bergen Group's key figures for the first quarter 2010
- A turnover of NOK 971 million (NOK 1,146 in Q1 2009)
- EBITDA of NOK 81 million (NOK 78 million in Q1 2009)
- EBITDA margin of 8.3 per cent (6.8% in Q1 2009)
- Orders of NOK 3.4 billion on its books (NOK 6.3 billion as of 31 March 2009).
The Shipbuilding Division delivers stronger margins, and the results for the first quarter in other parts of the group are in line with previous signals. The challenging market situation has affected both turnover and margins in the Offshore Division. The Technology Division continues to deliver stable turnover and satisfactory margins, while the Maritime Service Division is characterised by the strong competition in the market.
| Condensed consolidated interim statement of income (unaudited) | ||||
|---|---|---|---|---|
| Figures in NOK MILLION | Q1 2010 | Q1 2009 | YTD 2009 | YTD 2008 2) |
| Operating revenues | 971 | 1 146 | 5 108 | 3 742 |
| Other operating costs | (890) | (1 068) | (4 692) | (3 551) |
| Operating profit before depreciation | 81 | 78 | 416 | 191 |
| Ordinary depreciation | (13) | (11) | (45) | (35) |
| Excess depreciation and write down of goodwill 1) | (11) | (11) | (131) | (45) |
| Operating profit | 57 | 56 | 239 | 112 |
| Net interest costs | (24) | (7) | (81) | (93) |
| Profit before taxes | 33 | 49 | 158 | 18 |
| Net profit 3) | 24 | 35 | 78 | 19 |
| Earnings pr share (NOK) | 0,50 | 0,76 | 1,67 | 0,44 |
| Diluted earnings per share (NOK) | 0,45 | 0,76 | 1,58 | 0,44 |
| Weighted avg. no. of shares outstanding (mill) | 48,07 | 45,88 | 46,56 | 43,12 |
| Diluted Weighted avg. no. of shares outstanding (mill) | 52,99 | 45,88 | 49,13 | 43,12 |
| 1) Depreciation of identified excess values related to acquisitions | ||||
| 2) Bergen Group Fosen is included from 16.07.2008 | ||||
| 3) Tax in 2009 calculated based on a nominal tax rate of 28% |
Bergen Group ASA/Report, first quarter 2010
Report, first quarter 2010 - summary
Bergen Group had a satisfactory profit margin at group level in the first quarter 2010, even through turnover is down somewhat. At NOK 971 million, operating revenues are down NOK 175 million on the same quarter last year, while, at NOK 81 million, operating profit before depreciation and write-downs (EBITDA) has improved by NOK 3 million in relation to the corresponding quarter the year before. The quarter's operating margin (the EBITDA margin) of 8.3 percent is up compared with the first quarter 2009 and is in line with the group's average operating margin of 8.1 per cent for the whole of 2009.
However, the figures for parts of the group's business areas are affected by the reduction in orders from offshore-related activity throughout most of 2009. Even though Bergen Group Offshore had satisfactory margins on the completed assignments, the low capacity utilisation has affected the quarter's margins.
The process of financing new shipbuilding projects is still regarded as challenging, and the Norwegian shipbuilding industry has also had to live with record-low orders for newbuild contracts in the first quarter. Bergen Group's contract with Fjord Line for the building of two modern cruise ferries was signed mid March 2010, and the process of finalizing the financing is expected to be finished within a short period of time.
Market signals in the first quarter have been positive with regard to future developments. The number of queries and tender packages in the market is increasing, and the increase in the oil price has been positive for the operating companies' activity level.
Bergen Group has long worked purposefully to highlight and capitalise on the group's expertise in building advanced vessels for the RoPax market, including forming a separate ship design company. The contract with Fjord Line will prove that it was the right decision to retain and develop the group's extensive expertise in this market, which is expected to grow in the future.
Bergen Group is in the process of completing the refinancing of its bond debt that falls due in mid-August 2010 and it expects to receive clarification of this before the end of the second quarter.
Financial review
This interim report has been prepared in accordance with IAS 34 'Interim Financial Reporting', and it follows the same accounting principles as used in the annual accounts for 2009.
Order books
Bergen Group had orders on its books worth NOK 3.4 billion as of 31 March 2010, compared with NOK 4.2 billion as of 31 December 2009 and NOK 6.3 billion as of 31 March 2009. In addition to this comes the contract for building two new cruise ferries for the shipping company Fjord Line. These contracts are worth EUR 206 million, which, as of 31 March 2010, amounted to NOK 1.62 billion. The contract is expected to be finalized in regards of financing and board approvals within short time.
The Shipbuilding Division has orders on its books that ensure activity at Bergen Group BMV until well into the first quarter 2011. The yard is currently pricing a number of potential projects and assignments that may materialise in the short term. Bergen Group Fosen is ensured sufficient activity until the middle of the third quarter 2010, and the yard is working on several concrete opportunities that can ensure activity until the first hull for Fjord Line arrives in summer 2011. The two cruise ferries will result in a very good capacity utilisation at the yard until the final boat is delivered in autumn 2012. The orders at the yard include a contract with BOA Offshore for the building of four AHTS vessels worth a total of NOK 1.9 billion. The shipowner has yet to secure full financing for these vessels, and in Bergen Group's view, this contract will probably not generate activity at Bergen Group Fosen until the end of the fourth quarter 2010 at the earliest.
As of 31 March 2010, the Offshore Division's order situation reflects the oil companies' wait and see attitude to the initiation of service, modification and development projects. Bergen Group expects the order situation in this division to improve already in the second quarter. The value of the framework contract that Bergen Group Rosenberg entered into with ConocoPhilips in November 2009 is not included in the orders described here. This contract runs until 31 December 2010, with an option for an extension of two times two years. Nor is the value of the memorandum of understanding with SBM (Single Buoy Moorings Offshore contractors) for work in connection with the completion of a mobile offshore production and offshore storage platform for the Yme field included in the order books at the end of the quarter.
Our order situation is such that we can expect satisfactory activity in 2010 in both the Technology Division and Maritime Service Division.
Bergen Group ASA/Report, first quarter 2010
Profit and loss account
Bergen Group had operating revenues of NOK 971 million in the first quarter 2010, compared with NOK 1,146 million in the corresponding quarter in 2009.
The operating profit before depreciation (EBITDA) for the quarter amounted to NOK 81 million, compared with NOK 78 million in the same quarter 2009. That means an EBITDA margin for the quarter of 8.3%, compared with 6.8% in the corresponding quarter in 2009.
At group level, the results for the first quarter are regarded as largely satisfactory. The Shipbuilding, Maritime Service and Technology divisions all have operating profits that are seen as acceptable in today's market situation. The Offshore Division's margins are satisfactory for both ongoing and completed projects, but the quarter's profits are influenced by low capacity utilisation that affects margins. There will be no significant change in this situation before the third quarter. In Bergen Group's view, the prospects for further development in this market are fundamentally positive, and it has chosen to invest in maintaining stable capacity and know-how pending the expected increase in activity.
After total depreciation of NOK 24 million during the quarter, NOK 11 million of which consisted of depreciation and write-downs of excess values and goodwill, the operating profit (EBIT) for the first quarter amounted to NOK 57 million, compared with NOK 56 million the year before.
Net financial expenses in the first quarter 2010 amounted to NOK 24 million, compared with NOK 7 million in the first quarter 2009. The increase in financial expenses in Q1 2010 compared with Q1 2009 is due to higher margins in connection with the extension of the bond loan effected in June 2009, and the fact that there was a big currency gain effect in Q1 2009.
The pre-tax profit in the first quarter 2010 was NOK 33 million, compared with NOK 48 million in the corresponding quarter in 2009.
Balance sheet and cash flow
The company's balance sheet total at 31 March 2010 was NOK 4,018 million, compared with NOK 4,143 million on the same date in 2009. Goodwill and excess values at 31 March 2010 amounted to NOK 1,254 million. This balance sheet item is largely related to acquisitions made during 2007 and 2008. The company's receivables amounted to NOK 341 million, while it had bank deposits of NOK 445 million.
Its net interest-bearing debt at 31 March 2010 was NOK 494 million.
The company's equity as of 31 March 2010 was NOK 1,529 million, which means an equity ratio of 38.1%. The company had short-term liabilities of NOK 2,074 million. NOK 628 million of this consisted of building loans, while NOK 580 million were bond loans. Long-term liabilities and commitments amounted to NOK 415 million.
Bergen Group has two bond loans in the amount of NOK 400 million and NOK 250 million, respectively. Both of them mature in August 2010. The company is in the process of securing a more long-term profile for its long-term external loan financing, and it expects to have this in place during the second quarter.
The company had a net cash flow of NOK 9 million in the first quarter 2010. The cash flow from operations was NOK 26 million, compared with NOK 60 million in the preceding quarter.
Since its formation in 2007, Bergen Group has had somewhat limited working capital. This has been reinforced by a consistent and steadily increasing activity level in the group's companies. Large parts of the Shipbuilding Division's orders are part-financed through building loans during the building period, which means that the company has substantial equity tied up in building projects. The equity is only released together with the profits from the project when projects are completed and handed over to the shipowner. Several of the ships under production as of 31 March 2010 are financed by building loans during the building period.
Segment information
The group reports for the following four segments: shipbuilding, maritime service, offshore and technology. Each of these segments is organised as a separate business area.
Bergen Group ASA/Report, first quarter 2010
Bergen Group ASA/Report, first quarter 2010
Shipbuilding
| Shipbuilding^{1)} | Q1 2010 | Q1 2009 | Pr. 31.12 2009 |
|---|---|---|---|
| Figures in NOK mill. | |||
| Gross operating revenues | 581 | 672 | 2 884 |
| EBITDA | 78 | 38 | 234 |
| Ordinary depreciation | (3) | (5) | (15) |
| Excess depreciation and write down of goodwill | (3) | (4) | (18) |
| Operating profit | 72 | 29 | 201 |
| Order backlog | 3 043 | 5 301 | 3 608 |
In the first quarter 2010, the Shipbuilding Division contributed turnover of NOK 581 million. EBITDA for the quarter was NOK 78 million, corresponding to an EBITDA margin of 13.5%, compared with NOK 38 million (EBITDA margin of 5.7%) in the first quarter 2009. The group's two shipyards made good progress on projects and had satisfactory utilisation of capacity.
As of 31 March 2010, there were a total of four hulls being fitted out at Bergen Group Fosen and Bergen Group BMV. All four hulls are advanced offshore ships that are scheduled for delivery in 2010. One newbuild was delivered during the quarter, Geo Caspian (BN 82 from Bergen Group Fosen). This newbuild was delivered to Volstad Maritime and the advanced seismic ship has been chartered to Fugro-Geoteam. BN 82 is the fifth ship Bergen Group has built for Volstad Maritime since autumn 2007.
In January 2010, Bergen Group chose to transfer part of Bergen Group BMV's fitting out work on BN 167 from Bergen to Fosen. The hull arrived at Fosen in mid-March, ensuring a satisfactory activity level at the yard into September. The transfer of the fitting out work enables Bergen Group to utilise its own resources optimally during a period of record-high activity in the group's Shipbuilding Division.
Bergen Group BMV has orders on its books that will ensure activity at the yard until well into the first quarter 2011. The yard will deliver a total of three newbuilds during the second and third quarters. In addition, the hull for BN 166 will arrive from Poland during the summer for fitting out and completion. This ship is scheduled for delivery in the first quarter 2011. The yard focuses strongly on securing assignments that can strengthen the order books in both the short and long term.
Bergen Group Fosen's contract with Fjord Line for the building of two cruise ferries is expected to be finalized within short time. The contract will ensure activity at the yard until autumn 2012. The yard is making determined efforts to ensure a satisfactory level of activity in the period from the delivery of BN 167 (in the middle of the third quarter) until the hull for the first cruise ferry arrives at the yard in summer 2011.
The company's order books as of 31 March 2010 include four advanced offshore vessels (BN 83-BN 86) for which the shipping company BOA Offshore has yet to secure full financing. It is currently uncertain when these contracts can generate fitting out and completion work. Bergen Group is still considering different models to ensure the building of the contracted vessels, but this is not expected to generate any noteworthy activity at Fosen until the end of the fourth quarter 2010.
Bergen Group is registering increasing interest in newbuilds in the markets that are the group's focus areas. A restrictive finance market makes the processes involved in financing newbuilds challenging for both yards and customers.
Offshore
| Offshore | Q1 2010 | Q1 2009 | Pr. 31.12 2009 |
|---|---|---|---|
| Figures in NOK mill. | |||
| Gross operating revenues | 190 | 239 | 1 358 |
| EBITDA | (14) | 10 | 103 |
| Ordinary depreciation | (5) | (4) | (16) |
| Excess depreciation and write down of goodwill | (3) | (3) | (13) |
| Operating profit | (22) | 3 | 74 |
| Order backlog | 155 | 510 | 258 |
The Offshore Division's turnover was NOK 190 million in the first quarter, compared with NOK 239 million in the first quarter 2009. EBITDA was minus NOK 14 million, compared with NOK 10 million in the first quarter 2009.
A reduction in new orders throughout much of 2009 has resulted in lower activity levels in all the division's companies this quarter. Even though there are clear indications of a future increase in activity in this sector, this will not have any significant effect on turnover until the third quarter 2010. The overall macro picture for the offshore and supplier industry is seen as fundamentally positive, however, and Bergen Group expects to see growth in this area in the years ahead.
4
Through investments and reference projects in 2009, Bergen Group Hanøytangen is in a good position to develop into a leading industry yard that also includes offshore and maritime operations in addition to ordinary rig assignments. Bergen Group Hanøytangen also has competitive facilities for mobilisation work of various kinds, and it has a contract to prepare a newbuild (a seismic ship) for operation this summer.
As previously stated, the number of planned rig modifications in 2010 (five-year classifications and modifications/maintenance) in the North Sea market is lower than the actual figures in 2009 and the estimates for 2011. So far, the overall high activity level on rigs in the North Sea in 2010 has not resulted in new contracts for rig assignments for Bergen Group Hanøytangen.
Bergen Group Rosenberg order books at 31 March 2010 are characterised by a market that has been hesitant in relation to awarding new contracts and assignments in 2009. The signed framework contract with ConocoPhilips did not generate activity in the first quarter and it is expected to have little effect on results in the second quarter. The memorandum of understanding signed with SBM (Single Buoy Moorings Offshore Contractors) for work in connection with the completion of a mobile offshore production and offshore storage platform for the Yme field, will not generate activity until the third quarter because of its delayed arrival at Bergen Group Rosenberg.
Bergen Group Rosenberg is now preparing for an increase in activity in the years ahead. During the first quarter, decisions were made that will result in the company increasing its capacity by 400 new, modern office spaces by the end of 2011. This is one of several measures that have been implemented to facilitate further strengthening of Bergen Group Rosenberg as a supplier of services and products that demand an increasing level of expertise.
Maritime Service
| Maritime service
Figures in NOK mill. | Q1
2010 | Q1
2009 | Pr.
31.12
2009 |
| --- | --- | --- | --- |
| Gross operating revenues | 86 | 84 | 323 |
| EBITDA | 3 | 5 | 33 |
| Ordinary depreciation | (3) | (2) | (7) |
| Excess depreciation and write down of goodwill | (2) | (1) | (54) |
| Operating profit | (2) | 2 | (28) |
| Order backlog | 39 | 59 | 45 |
Maritime Service's turnover amounted to NOK 86 million in the first quarter, compared with NOK 84 million in the same quarter in 2009. EBITDA for the quarter was NOK 3 million (an EBITDA margin of 2.9%), compared with NOK 5 million in the first quarter 2009 (an EBITDA margin of 5.6%). The combination of pressure on the market and fewer assignments and spare capacity along the entire coast has affected the division's margins.
Bergen Group implemented various measures in the last six months of 2009 that have boosted the division's capacity and competitiveness. In addition, the division's companies in Southern Norway were coordinated in one business unit from 1 February 2010. These measures have laid a good foundation for further optimisation of resources in the division. Even though the market is expected to remain under pressure in the short term, Bergen Group has great expectations of the division's further development – in relation to both its market position and earnings.
The process of establishing a permanent solution and appointing a vice president to head this division is expected to be completed during the second quarter. Until further notice, CEO Pål Engebretsen will be responsible for the division.
Technology
| Technology
Tall i NOK mill. | Q1
2010 | Q1
2009 | Pr.
31.12
2009 |
| --- | --- | --- | --- |
| Gross operating revenues | 143 | 183 | 690 |
| EBITDA | 10 | 25 | 66 |
| Ordinary depreciation | (1) | (1) | (3) |
| Excess depreciation and write down of goodwill | (1) | (3) | (9) |
| Operating profit | 8 | 21 | 54 |
| Order backlog | 375 | 588 | 443 |
The Technology Division's turnover amounted to NOK 143 million in the first quarter, compared with NOK 183 million in the corresponding quarter in 2009. EBITDA for the quarter was NOK 10 million, compared with NOK 25 million in the same period in 2009. After the restructuring in 2009, Bergen Group Technology now consists of four companies whose activities are concentrated on the group's strategic focus areas.
Despite somewhat smaller order books compared with the same time in 2009, the division has a satisfactory and stable level of activity that is expected to last throughout 2010. Further prospects
Bergen Group ASA/Report, first quarter 2010
are positive in both the short and long term, and the companies in the division have increased their focus on market and product development in the last quarter.
In addition, the division has initiated processes that will highlight the companies' combined expertise and innovative strength, and the new sales office for Bergen Group Dreggen in Brazil is in the process of starting up. This office will be a hub for this company's efforts in both South and North America.
Business Development
The companies in this new organisational entity, which was established in 2009, had a turnover of NOK 30 million in the first quarter 2010. Operating profit before depreciation and write-downs was NOK 3 million. This includes a one-off gain on the sale of property in connection with the closure of the group's hull yard in Landskrona. It is expected that Business Development will generate a positive bottom line in the time ahead.
The companies in Business Development have both a long history and established positions in markets that fall outside the group's strategic priority areas. The process of assessing these companies' future is under way.
Elimination, group
| Group elimination Figures in NOK million | Q1 2010 | Q1 2009 | 31.12 2009 | 31.12 2008 |
|---|---|---|---|---|
| Elimination operating revenues Costs related to listing/ restructuring | (60) | (65) | (290) | (218) |
| Elimination order backlog | - | - | - | (11) |
Shareholder information
Bergen Group has been listed on Oslo Børs (OB) since 30 June 2008. During the first quarter 2010, the company's shares were traded at prices between NOK 6.05 and NOK 8.50. The final price on 31 March 2010 was NOK 8.12, which, based on 48.074 million outstanding shares, values the company's equity at NOK 390 million at the end of the quarter.
When it was listed on 30 June 2008, the company had approximately 550 shareholders. At the end of the first quarter 2010, the company had 880 shareholders, the 20 biggest of which, combined, owned 85.15% of the company.
In the first quarter 2010, there were 736 trades in the share via Oslo Børs, involving a total volume of 8.2 million shares.
On 18 December, Bergen Group was moved up from OB Standard to OB Match as a result of increased trading in its shares (more than 10 trades per day).
In connection with the signing of new agreements with bond holders (described in detail in the interim report for Q2 2009), the general meeting on 30 June 2009 resolved to issue 4,855,352 subscription rights for shares at a redemption price of NOK 1.10. As of 31 March 2010, 2,160,643 subscription rights had been exercised. The remaining number of subscription rights at 31 March 2010 was 2,694,709. They must be exercised by 13 August 2010.
Other matters:
On 22 January 2010, Spring Capital Resources Inc flagged the purchase of 324,026 subscription rights and 314,000 shares, which brought the company up to a total of 324,026 subscription rights and 2,664,000 shares. On 26 March 2010, Spring Capital Resources flagged the purchase of a total of 929,800 shares. After this, Spring Capital Resources owns a total of 438,726 subscription rights and 4,629,800 shares, which corresponds to 10.55% of the share capital at the time of the flagging.
On 23 February 2010, ODIN Forvaltning AS flagged that funds owned by them had purchased 100,000 shares, bringing the total number of its shares to 2,480,000. At the time of the purchase, this amounted to 5.16% of the share capital.
Prospects
The results in the first quarter are affected by the hesitancy with regard to investment decisions that characterised much of 2009 and that also resulted in keener international competition. As a result of the general market situation, the group is prepared for lower turnover in 2010 than in previous years. Nevertheless, Bergen Group's goal is still to maintain acceptable profitability this year, and the group also maintains a strong focus on measures and process that will ensure the group's long-term growth capability. Bergen Group sees the prospects for 2011 and the years to follow as fundamentally positive for all of the group's business areas.
Offshore: Uncertainty regarding the development of the oil price in much of 2008 and 2009, combined with the turbulence in the international financial markets, led to the postponement of many offshore-related projects. This has strongly affected
Bergen Group ASA/Report, first quarter 2010
assignments for the supplier industry. Bergen Group expects this to continue to affect the Offshore Division's results in the second and third quarters 2010.
The longer-term picture in the offshore sector has shown a marked positive development throughout the first quarter. In mid-March, Statoil signalled that, in the second half-year, it expects to award contracts for up to NOK 50 billion relating to maintenance and modifications of the company's Norwegian installations. Several other key players in the oil and gas industry have also given indications that underpin the expectation of positive development in the maintenance and modification field in future.
In addition, increased investments in field development are expected in the years ahead. The clarification in February that Statoil and partners now want to start the work on the Gudrun field will alone generate investments of more than NOK 20 billion until the expected start-up of production in 2014.
Bergen Group is in a strong position to participate in this coming increase in activity. The Offshore Division has well established facilities both at Bergen Group Hanøytangen and Bergen Group Rosenberg that have a very exciting growth potential. In the somewhat longer term, the group's strong position in Kirkenes is seen as attractive, as the demarcation boundary in the Barents Sea has now been settled. Bergen Group is currently one of the biggest private employers in Finnmark county, and the group's extensive experience from cooperation projects across the Norwegian and Russian border related to maritime and offshore activity will be further developed in the years ahead.
Shipbuilding: Bergen Group's Shipbuilding Division has recorded good results for a long time now, despite its operating in a highly competitive international market. The group's strong focus on projects that require great expertise in the offshore and RoPax segment will be continued and strengthened. The establishing of Bergen Group ShipDesign was a contributory factor in winning the competition for the contracts for the two new cruise ships, and the group will further strengthen its focus on design.
A demanding finance market means that it is still challenging for the industry to enter into new shipbuilding contracts. Bergen Group is preparing for a situation that could necessitate structural changes in the industry in the years ahead, and it is ready to play an active part in processes that can help to ensure that the group maintains its strong position in this area.
Bergen Group does not believe that the government's package of measures aimed at the shipbuilding and supplier industry, which was presented at the end of April, will significantly affect the group's activity level in the current year. The package of measures contains several elements that could have a positive effect on different areas in the longer term. One of the most important elements mentioned in the package is the government's clear assurance that it will make active endeavours to ensure that the Norwegian shipbuilding industry's competitive position in the international market is not weakened.
Internationally: Bergen Group's experience and position are now such that they increasingly attract international attention. There is increased demand for and interest in the group's resources and experience in all of the company's business areas. Bergen Group is in the process of assessing how this position can be best capitalised on in the group's growth strategy, both in relation to today's market and to new geographical areas. The work of considering diversified ownership in the company's business areas is part of this process.
Closely-related parties
Note 25 in Bergen Group's annual report for 2009 concerns transactions with closely-related parties. There have been no changes in this connection or transactions with closely-related parties during the first quarter 2010 that materially influence the group's financial position or performance.
Bergen, 11 May 2010
Board of Directors and CEO of Bergen Group ASA
Magnus Stangeland, Chair of the Board
Svein Milford, Deputy Chair
Anne Gine Hestetun, board member
Eli Sætersmoen, board member
Geirulv Lode, board member
Rune Skarveland, board member
Monica Salthella, board member
Ove Iversen, board member, employee repr.
Arne Vindenes, board member, employee repr.
Ingunn Flytør, board member, employee repr.
Pål Engebretsen, CEO
Bergen Group ASA/Report, first quarter 2010
Quarterly development Bergen Group – consolidated group figures
Quarterly development Bergen Group – by business area
Bergen Group ASA/Report, first quarter 2010
Group consolidated accounts Bergen Group ASA – Fourth quarter 2009 (unaudited)
| Figures in TNOK | Q1 2010 | Q1 2009 | YTD 2009 | YTD 2008^{2)} |
|---|---|---|---|---|
| Operating revenues | 970 609 | 1 146 385 | 5 108 260 | 3 741 878 |
| Cost of Goods Sold | 516 578 | 651 264 | 2 906 935 | 2 286 660 |
| Salaries and personnel costs | 301 761 | 327 682 | 1 353 815 | 967 174 |
| Other operating costs | 71 398 | 89 327 | 431 678 | 297 001 |
| Operating profit before depreciation | 80 872 | 78 112 | 415 831 | 191 043 |
| Ordinary depreciation | 12 678 | 11 007 | 45 288 | 34 910 |
| Excess depreciation and write down of goodwill^{1)} | 10 928 | 11 379 | 131 473 | 44 503 |
| Operating profit | 57 266 | 55 726 | 239 073 | 111 630 |
| Net interest costs | (23 204) | (18 929) | (94 518) | (81 519) |
| Other finance costs | (919) | 11 714 | 13 879 | (11 616) |
| Profit before taxes | 33 143 | 48 511 | 158 434 | 18 495 |
| Taxes | 9 280 | 13 583 | 80 599 | (519) |
| Net profit 3) | 23 863 | 34 928 | 77 835 | 19 014 |
1) Depreciation of identified excess values related to acquisitions
2) Bergen Group Fosen is included from 16.07.2008
3) Tax in 2009 calculated based on a nominal tax rate of 28%
| Statement of comprehensive income | Q1 2010 | YTD 2009 | |
|---|---|---|---|
| Figures i TNOK | |||
| Profit for the period | 23 863 | 77 835 | |
| Other comprehensive income | |||
| Foreign currency translation subsidiaries | - | - | |
| Available for sale financial hedges | - | - | |
| Cash flow hedges | - | - | |
| Gains on property revaluation | - | - | |
| Actuarial gain (loss) on defined benefit pension plans | - | (5 479) | |
| Share of other comprehensive income of associates | - | - | |
| Income tax relating to components of other comprehensive income | - | (3 569) | |
| Other comprehensive income for the period, net of tax | 23 863 | 68 787 | |
| Total comprehensive income for the period | 23 863 | 68 787 | |
| Total comprehensive income attributable to: | - | - | |
| Owners of the parent | 23 863 | 68 787 | |
| Minority interests | - | - | |
| Condensed consolidated interim balance sheet | |||
| --- | --- | --- | --- |
| Figures in TNOK | 31.03.2010 | 31.12.2009 | 31.12.2008 |
| Intangible assets | 1 254 438 | 1 256 365 | 1 382 839 |
| Tangible assets | 862 994 | 886 441 | 829 193 |
| Financial assets | 19 966 | 24 047 | 51 904 |
| Total non-current assets | 2 137 398 | 2 166 853 | 2 263 936 |
| Inventory | 33 063 | 36 358 | 51 277 |
| Projects in progress | 1 062 450 | 1 390 217 | 692 125 |
| Receivables | 340 812 | 390 779 | 656 152 |
| Bank deposits | 444 624 | 453 515 | 249 929 |
| Total current assets | 1 880 949 | 2 270 869 | 1 649 483 |
| Total assets | 4 018 347 | 4 437 723 | 3 913 419 |
| Paid-in equity | 48 074 | 48 074 | 45 881 |
| Share premium fund | 1 173 019 | 1 173 019 | 1 171 754 |
| Own shares | - | - | (95) |
| Non-registered increase in share capital | - | 10 832 | 10 834 |
| Other equity | 285 194 | 260 865 | 198 330 |
| Minority interests | - | 241 | 160 |
| Total equity | 1 529 141 | 1 505 053 | 1 416 030 |
| Provision for liabilities | 249 083 | 241 815 | 173 105 |
| Long term liabilities | 165 974 | 178 139 | 459 919 |
| Total long term liabilities | 415 058 | 419 954 | 633 024 |
| Short term bond loan | 580 086 | 611 214 | 361 500 |
| Short term liabilities | 866 212 | 1 052 305 | 1 126 738 |
| Construction loans | 627 850 | 849 196 | 376 127 |
| Total short term liabilities | 2 074 148 | 2 512 715 | 1 864 365 |
| Total liabilities | 2 489 206 | 2 932 670 | 2 497 389 |
| Total equity and liabilities | 4 018 347 | 4 437 723 | 3 913 419 |
| Condensed consolidated interim statement of cash flow | |||
| --- | --- | --- | --- |
| Figures in TNOK | Q1 2010 | Q1 2009 | YTD 2009 |
| From operational activities | 26 358 | 59 505 | 253 900 |
| From investment activities | 14 331 | (29 246) | (111 731) |
| From financing activities | (49 580) | (2 800) | 61 417 |
| Change in the period | (8 891) | 27 459 | 203 586 |
| Cash & cash equiv. at start of period | 453 515 | 249 929 | 249 929 |
| Cash & cash equiv. at end of period | 444 624 | 277 388 | 453 515 |
Bergen Group ASA/Report, first quarter 2010
Bergen Group ASA
Notes to First quarter 2010
Group consolidated accounts (unaudited)
1: General
Bergen Group ASA is listed at Oslo Stock Exchange and is a Norwegian company. The consolidated figures include subsidiaries and parts in associated companies.
2: Interim report
This interim report is in accordance with IAS 34 "Interim Financial Reporting" and follows the same accounting principles as the financial statements for 2008. An interim report does not include all the information required in a complete financial statement, and it should be read in conjunction with the consolidated financial statement for 2008. The financial statement is available at the group's web pages: www.bergengroup.no
3: Estimates and judgments in the accounts
Preparation of both interim accounts and financial statement according to IFRS includes judgments, estimates and assumption that will influence of the reported values for both assets, liabilities, income and costs. During the preparation of the accounts the management used estimates based on best estimates, and assumptions considered to be fair and true based on historical knowledge. Actual amounts may deviate from estimated amounts.
4: Changes in equity
Other changes in equity since 31.12.2009 is related to equity effects of share options.
| Reconciliation of equity | |||
|---|---|---|---|
| Figures in TNOK | 31.03.2010 | 31.12.2009 | 31.12.2008 |
| Equity at the end of previous period | 1 505 053 | 1 416 030 | 1 209 266 |
| Effect of triangle merger with ext. Party | - | - | 77 000 |
| Share issue | - | 2 412 | 97 689 |
| Net profit for the period | 23 863 | 77 524 | 19 014 |
| Other changes | 225 | 9 087 | 13 061 |
| Changes in equity through the year | 24 088 | 89 023 | 206 764 |
| - | - | - | |
| Equity per end of period | 1 529 141 | 1 505 053 | 1 416 030 |
4: Largest shareholders
| Largest shareholders per. 31.03.2010 | # of shares | % ownership |
|---|---|---|
| STANGELAND INVESTMENTS AS | 20 379 014 | 42,39 % |
| GOLDMAN SACHS INT. - EQUITY - | 4 629 800 | 9,63 % |
| EIKESTØ AS | 2 507 348 | 5,22 % |
| ODIN OFFSHORE | 2 480 000 | 5,16 % |
| FURENESET INVEST A/S | 2 020 686 | 4,20 % |
| ROS HOLDING AS | 1 436 841 | 2,99 % |
| MAY INVEST A/S | 989 981 | 2,06 % |
| SØR-VARANGER INVEST AS | 846 774 | 1,76 % |
| RBC DEXIA INVESTOR SERVICES TRUST | 752 000 | 1,56 % |
| KANABUS AS | 710 962 | 1,48 % |
| OTIBANK N.A. NEW YORK BRANCH | 649 043 | 1,35 % |
| DNB NOR NAVIGATOR | 634 661 | 1,32 % |
| BERNNO. BREKKE AS | 494 505 | 1,03 % |
| FOSEN OFFSHORE AS | 494 505 | 1,03 % |
| MORGAN STANLEY & CO INTERNAT. PLC | 410 337 | 0,85 % |
| DNB NOR SMB | 359 368 | 0,75 % |
| BANK JULIUS BAER & CO. AG | 297 030 | 0,62 % |
| BERGER BRUKTOMSSETNING AS | 284 000 | 0,59 % |
| FLYFISK AS | 281 250 | 0,59 % |
| CACEIS BANK LUXEMBOURG | 247 270 | 0,51 % |
| Sum | 40 905 375 | 85,09 % |
| Other shareholders | 7 168 921 | 14,91 % |
| Total shareholders | 48 074 296 | 100,00 % |
Bergen Group ASA/Report, first quarter 2010
Bergen Group ASA
Notes to First quarter 2010
Group consolidated accounts (unaudited)
- Segment information
| Shipbuilding | ||||
|---|---|---|---|---|
| Figures in NOK million | Q1 2010 | Q1 2009 | YTD 2009 | YTD 2008 |
| Gross operating revenues | 581 | 672 | 2 884 | 1 974 |
| EBITDA | 78 | 38 | 234 | 49 |
| Ordinary depreciation | (3) | (5) | (15) | (13) |
| Excess depreciation | (3) | (4) | (18) | (17) |
| Operating profit | 72 | 29 | 201 | 19 |
| - | - | - | ||
| Order backlog 1) | 3 043 | 5 301 | 3 608 | 5 718 |
1) The order backlog does not include contract with Fjord Line with value of NOK 1.6 billion.
| Offshore | ||||
|---|---|---|---|---|
| Figures in NOK million | Q1 2010 | Q1 2009 | YTD 2009 | YTD 2008 |
| Gross operating revenues | 190 | 239 | 1 358 | 1 107 |
| EBITDA | (14) | 10 | 103 | 86 |
| Ordinary depreciation | (5) | (4) | (16) | (12) |
| Excess depreciation | (3) | (3) | (13) | (13) |
| Operating profit | (22) | 3 | 74 | 60 |
| - | - | |||
| Order backlog | 155 | 510 | 258 | 462 |
| Maritime Service | ||||
| --- | --- | --- | --- | --- |
| Figures in NOK million | Q1 2010 | Q1 2009 | YTD 2009 | YTD 2008 |
| Gross operating revenues | 86 | 239 | 323 | 263 |
| EBITDA | 3 | 10 | 33 | 24 |
| Ordinary depreciation | (3) | (4) | (7) | (6) |
| Excess depreciation | (2) | (3) | (54) | (4) |
| Operating profit | (2) | 3 | (28) | 14 |
| - | - | - | ||
| Order backlog | 39 | 59 | 45 | 57 |
| Technology | ||||
| --- | --- | --- | --- | --- |
| Figures in NOK million | Q1 2010 | Q1 2009 | YTD 2009 | YTD 2008 |
| Gross operating revenues | 143 | 183 | 690 | 528 |
| EBITDA | 10 | 25 | 66 | 39 |
| Ordinary depreciation | (1) | (1) | (3) | (3) |
| Excess depreciation | (1) | (3) | (9) | (10) |
| Operating profit | 8 | 21 | 54 | 26 |
| - | - | - | ||
| Order backlog | 375 | 588 | 443 | 693 |
| Restructuring | ||||
| --- | --- | --- | --- | --- |
| Figures in NOK million | Q1 2010 | Q1 2009 | YTD 2009 | YTD 2008 |
| Gross operating revenues | 30 | 38 | 142 | 88 |
| EBITDA | 3 | 1 | (19) | 4 |
| Ordinary depreciation | (1) | (1) | (6) | (1) |
| Excess depreciation | (0) | - | (37) | - |
| Operating profit | 2 | - | (62) | 3 |
| - | - | - | ||
| Order backlog | 12 | 65 | 13 | 49 |
| Group elimination | ||||
| --- | --- | --- | --- | --- |
| Figures in NOK million | Q1 2010 | Q1 2009 | YTD 2009 | YTD 2008 |
| Elimination operating revenues | (60) | (65) | (290) | (218) |
| Costs related to listing/restructuring | - | - | - | (11) |
| - | - | - | ||
| Elimination order backlog | (207) | (259) | (140) | (163) |
Historical figures are adjusted in accordance with the restructuring 31.12.09 in order to show comparable numbers
Bergen Group ASA/Report, first quarter 2010