NRC Group — Interim / Quarterly Report 2010

Oct 28, 2010

REPORT FOR 3rd QUARTER 2010

Yet another challenging quarter

The company posted revenues of NOK 165 million in the

3rd quarter, compared with NOK 203 million for the

same quarter in 2009. EBITDA for the quarter was NOK

33 million, compared with NOK 26 million for the

corresponding quarter in 2009. This corresponds to an

EBITDA margin of 20 per cent, compared with 13 per

cent in the 3rd quarter of 2009. The operating profit

for the quarter was NOK 10 million, compared with NOK

4 million for the same period in 2009.

The operating revenues for the respective segments

totalled NOK 110 million for Geo Engineering and NOK

55 million for Information Services in the 3rd

quarter. The comparative figures for the 3rd quarter

of 2009 were NOK 169 million for Geo Engineering and

NOK 34 million for Information Services.

The demand for the company's contractual services,

for which the public sector is the largest customer

group, has been marked so far in 2010 by a continuing

weak economy in a number of countries in which we

have a significant portion of our operations. This

has resulted in temporary pressure on the prices in

parts of our operations and delayed call-off orders

under framework agreements. Revenues in Geo

Engineering are expected to be lower in 2010 than in

The backlog of orders that are to be filled next year

is greater than at the same time last year. The

company has chosen to focus on services for which

satisfactory margins can be achieved, which is

expected to improve our profitability when the orders

are filled in 2011. In addition, due to the weak

macroeconomic conditions, the company has reduced its

workforce and implemented other cost savings, which

are expected to give annualised savings of around NOK

50 million. The company is expected accordingly to

generate stronger margins in 2011 than in the current

year.

In the Information Services area the company has

reorganised and accelerated the build-up of its own

sales force during the quarter. In combination with

the implementation of a more sales-oriented

partnership, over time these measures are expected to

improve the company's ability to sell the same data

to multiple customers through different distribution

channels.

For further information please contact the CEO, Dirk

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

CFO Lars Bakklund on tel. +47 22 13 19 34.