2015-11-05 07:45:00 CET
2015-11-05 07:45:02 CET
BIRTINGARSKYLDAR UPPLÝSNINGAR
Dovre Group Oyj - Interim report (Q1 and Q3)
DOVRE GROUP INTERIM REPORT JANUARY 1 – SEPTEMBER 30, 2015
Espoo, Finland, 2015-11-05 07:45 CET (GLOBE NEWSWIRE) --
Dovre Group Plc Interim report
November 5, 2015 at 8.45 a.m.
DOVRE GROUP INTERIM REPORT JANUARY 1 - SEPTEMBER 30, 2015
Q3: POSITIVE OPERATING RESULT DESPITE NEGATIVE MARKET TREND
The merger between Dovre Group and Norwegian Petroleum Consulting Group AS
(NPC) was completed on May 28, 2015. NPC's financials are reported as part of
Dovre Group's Project Personnel business area as of May 28, 2015.
The interim report is unaudited. In parentheses last year's corresponding
period excluding NPC.
July - September 2015
-- Net sales EUR 30.8 (24.7) million - growth 25%
-- Net sales excluding NPC's share decreased by 29% - in constant currencies
-28%-- Project Personnel: net sales EUR 29.2 (22.8) million - growth 28%
-- Consulting: net sales EUR 1.5 (1.8) million - change -15%
-- EBITDA excluding non-recurring items EUR 0.4 (0.5) million, which is 1.2
(2.1) % of net sales
-- Non-recurring items EUR -0.0 (-0.2) million in total
-- Operating result EUR 0.2 (0.3) million
-- Result for the period EUR -0.4 (0.1) million, incl. EUR -0.6 million due to
write-offs in the Group's associate SaraRasa
-- Earnings per share EUR -0.00 (0.00)
-- Net cash flow from operating activities EUR 0.7 (0.1) million
January - September 2015
-- Net sales EUR 85.7 (73.5) million - growth 17%
-- Net sales excluding NPC's share decreased by 8% - in constant currencies
-10%
-- Project Personnel: net sales EUR 80.2 (68.0) million - growth 18%
-- Consulting: net sales EUR 5.5 (5.5) million - change 0%
-- EBITDA excluding non-recurring items EUR 1.1 (1.3) million, which is 1.3
(1.7) % of net sales
-- Non-recurring items EUR -1.1 (-0.3) million in total, EUR -0.5 million of
which due to external advisory services and EUR -0.6 million due to
restructuring costs
-- Operating result EUR -0,4 (0,6) million
-- Result for the period EUR -1.1 (-0.1) million, incl. EUR -0.8 (-0.4)
million of the result of the Group's associate SaraRasa
-- Earnings per share EUR -0.01 (-0.00)
-- Net cash flow from operating activities EUR -2.4 (-1.1) million
Guidance for 2015 (updated on October 1, 2015): Net sales are expected to be
EUR 115-120 million and the EBITDA excluding non-recurring items EUR 1.0-1.5
million.
PATRICK VON ESSEN, CEO:
“Heavy head wind continued in the oil and gas sector. Our comparable net sales
(not including NPC) in Q3 fell significantly from the previous year.
Approximately two thirds of the decline was due to reduced volumes, i.e. the
number of consultants, and one third due to lower prices demanded by our
clients. Our comparable net sales declined especially in Norway and Canada.
Net sales including NPC grew by 25% in Q3. Operating profit and EBITDA improved
towards the end of the quarter, but fell short of the previous year.
The integration between Dovre Group and NPC proceeds on schedule. Creating new,
unified processes and culture takes time, but we are on the right track and
have made significant progress. We have a new common organization in Norway and
have moved under a single roof both in Stavanger and Oslo.
In Q3, our ownership in our associate SaraRasa Bioindo's Indonesian production
unit decreased to 20% due to a new owner in the production unit. Bioindo's
production plant was relocated to Surabaya. Dovre Group's share of
thewrite-offs recognized for raw materials and factory buildings in connection
with the relocation totaled approx. EUR 0.6 million in Q3. The production line
has been started in test mode in the new location in the end of October, and
full-scale production is estimated to start during November.
In accordance with our strategy, we actively pursue diversification into other
market segments. We have secured more orders in major investment projects in,
for example, electricity production, power transmission and process industries.
While this is a promising development, it is not yet enough to compensate for
the heavy drop in demand in the oil and gas industry.
Implementation of the Group's focused growth strategy, released in October
2014, is underway, and we have refined the details of putting the strategy into
action. As outlined in the strategy, our target is to have net sales of EUR 200
million and an operating result exceeding EUR 10 million in 2019. To create the
building blocks of profitable growth, in 2016 we aim to unify and streamline
our work processes throughout the whole organization, to significantly improve
our sales process, and to continue diversifying into other market segments.”
FUTURE OUTLOOK AND GUIDANCE 2015
The market is still affected by several uncertainties, including general
economic trends, oil price, and political instabilities. Our main markets are,
however, in politically and economically stable countries.
Our clients in the Project Personnel business area are still cautious about
investments and we do not expect demand to pick up in 2015. Market situation in
Norway remains challenging. The completion of a major project in Canada
considerably earlier than anticipated will have a negative impact on our
end-of-year net sales and profitability (EBITDA). We have secured more orders
in major investment projects in, for example, electricity production, power
transmission and process industries. While this is a promising development, it
is not yet enough to compensate for the heavy fall in demand in the oil and gas
industry.
In the Consulting business area, market outlook for the end of the year is
positive both in Norway and Finland.
Markets are consolidating and we expect this trend to continue. We expect our
relative fixed costs to decrease each year going forward.
Guidance for 2015 (updated October 1, 2015): Net sales are expected to be EUR
115-120 million and the EBITDA excluding non-recurring items EUR 1.0-1.5
million.
KEY FIGURES
EUR million 7-9 7-9 Change 1-9 1-9 Change % 1-12
2015 2014 % 2015 2014 2014
--------------------------------------------------------------------------------
Net sales 30.8 24.7 24.8 85.7 73.5 16.6 98.9
--------------------------------------------------------------------------------
EBITDA excl. 0.4 0.5 -28.8 1.1 1.3 -8.4 2.1
non-recurring
items
--------------------------------------------------------------------------------
% of net sales 1.2 % 2.1 % 1.3 % 1.7 % 2.1 %
--------------------------------------------------------------------------------
Non-recurring items -0.0 -0.2 75.4 -1.1 -0.3 -229.1 -0.5
*)
--------------------------------------------------------------------------------
Operating result 0.2 0.3 -41.0 -0.4 0.6 -161.3 1.2
(EBIT)
--------------------------------------------------------------------------------
% of net sales 0.5 % 1.1 % -0.4 % 0.8 % 1.2 %
--------------------------------------------------------------------------------
Result -0.4 0.1 -487.3 -1.1 -0.1 -1 664.6 0.3
--------------------------------------------------------------------------------
% of net sales -1.4 % 0.4 % -1.3 % -0.1 % 0.3 %
--------------------------------------------------------------------------------
Net cash flow from 0.7 0.1 401.5 -2.4 -1.1 -115.3 1.9
operations
--------------------------------------------------------------------------------
Cash and cash 8.4 7.7 8.8 8.4 7.7 8.8 10.3
equivalents
--------------------------------------------------------------------------------
Debt-equity ratio -6.5 % -30.0 % -78.2 -6.5 % -30.0 % -78.2 -42.2 %
(Gearing), %
--------------------------------------------------------------------------------
Earnings per share.
EUR:
--------------------------------------------------------------------------------
Undiluted -0.00 0.00 -344.4 -0.01 -0.00 -1 296.5 0.00
--------------------------------------------------------------------------------
Diluted -0.00 0.00 -345.4 -0.01 -0.00 -1 301.6 0.00
--------------------------------------------------------------------------------
*) In 2015, non-recurring items in Q3 and the period under review consist of
external advisory services and restructuring costs related to the merger with
NPC. In 2014, non-recurring items in Q3 and the period under review consisted
of external advisory services, costs related to the Group's withdrawal from
biorenewables consulting and changes in personnel.
BRIEFING FOR PRESS AND FINANCIAL ANALYSTS ON NOVEMBER 10, 2015
Dovre Group's briefing on the company's Q3/2015 interim report will be held on
Tuesday, November 10, 2015, starting at 10 a.m. Finnish time (EET). The
briefing is held in English and will be organized as a conference call.
To participate in the conference call from Finland, please dial 5-10 minutes
prior to the start of the conference to 09 2310 1605, event code 188503.
To participate in the conference call outside Finland, please use one of the
local numbers listed below. The event code is 188503.
Calling from Norway: 023 89 44 77
Calling from Sweden: 020 22 90 90
Calling from the UK: 0800 026 0573
From other countries, please dial +358 9 2310 1605, event code 188503.
The presentation material is available on the company's website
www.dovregroup.com on Thursday, November 5, 2015.
This is a summary of Dovre Group Plc's interim report Jan. 1 - Sept. 30, 2015.
The report is attached to this bulletin and is also available online at
www.dovregroup.com -> Investors.
For additional information, please contact:
Dovre Group Plc
Patrick von Essen, CEO
(patrick.essen@dovregroup.com)
Heidi Karlsson, CFO
(heidi.karlsson@dovregroup.com)
tel. +358-20-436 2000
www.dovregroup.com
Distribution
NASDAQ OMX Helsinki Ltd
Major media
www.dovregroup.com
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