NRC Group — Earnings Release 2013

Feb 27, 2014

REPORT FOR 4TH QUARTER 2013

REPORT FOR 4TH QUARTER 2013

Sale of a subsidiary and major contract

As part of the continued restructuring of the

company, Blom have signed an agreement to sell the

subsidiary Blom Romania. The sale contributes to a

more focused operation and reduced exposure. Blom has

concentrated on developing new business areas based

on the company's core competence. The company is

satisfied that it has signed a two-year contract for

the delivery of airborne remote sensor services for

ice monitoring in northern waters. This contract

award in combination with the conversion of interest-

bearing bond debt, provide the company with a good

foundation for long-term, profitable growth.

The company reported revenues of NOK 52 million in

the 4th quarter, compared with NOK 61 million for the

same quarter in 2012. EBITDA for the quarter was NOK

16 million, compared with NOK 13 million for the

corresponding quarter in 2012. This corresponds to an

EBITDA margin of 30.8 per cent, compared with 22.0

per cent in the 4th quarter of 2012. The operating

loss for the quarter was NOK 7 million, compared with

an operating profit of NOK 3 million for the same

period in 2012. The pre-tax loss was NOK 9 million,

compared with a pre-tax loss of NOK 5 million for the

corresponding quarter in 2012.

The company's revenues for 2013 totalled NOK 265

million, compared with NOK 265 million in 2012.

EBITDA for 2013 was NOK 32 million, compared with NOK

49 million in 2012. This corresponds to an EBITDA

margin of 12.3 per cent for 2013, compared with 18.7

per cent in 2012. The operating loss for 2013 was NOK

55 million, compared with an operating profit of NOK

12 million in 2012. The pre-tax loss was NOK 64

million, compared with NOK 20 million for the

corresponding period in 2012.

Individual transactions resulting from extensive

restructuring have had a significant impact on the

results for the 4th quarters of 2013 and 2012, as

well as the full years 2013 and 2012. This applies to

substantial costs related to write-downs, as well as

revenues related to the sale of businesses and the

conversion of bond debt.

Despite the substantial restructuring over the last

two years, the company will continue its efforts to

adapt its structure, cost base and product portfolio

in order to improve the company's earning capacity.

The company will continue to implement measures to

develop business opportunities in markets where the

company's competence can be exposed to a better risk

and reward profile.

As at 31 December 2013, the company can present a

satisfactory balance sheet after the conversion of

bond debt and extensive write-down of company assets,

including a full write-down of intangible assets. The

company's equity ratio is 29 per cent and the current

ratio has also been significantly improved.

A new Board of Directors and shareholder structure

with confidence in the company's competence and

opportunities is a strong motivation for the

company's employees.

For further information please contact the CEO, Dirk

Blaauw, on tel. +47 22 13 19 20.