NRC Group ASA ("NRC Group" or the "Company") announces preliminary EBITA* of NOK
31 million for the fourth quarter of 2022 and NOK 1.95 billion in revenue. The
estimated EBITA* for 2022 is NOK 151 million, resulting in an EBITA* margin of
2.1% for 2022, and the estimated revenue for 2022 is NOK 7.0 billion.
NRC Group Sweden's preliminary EBITA* for 2022 is NOK -49 million compared to
NOK -67 million in 2021. The negative result is due to losses in the Civil
construction operations. In 2022, Civil construction had a revenue of
approximately NOK 358 million out of a total NOK 2.08 billion of revenue in
Sweden. The Company has decided to explore strategic options for the Civil
construction operations in Sweden.
"The Swedish Rail construction division improved during 2022, with strong growth
in revenue and a positive EBITA* for the year. We have also succeeded in
improving results in Maintenance, contributing to positive EBITA* results - and
winning 4 maintenance contracts, providing a solid outlook for this business.
However, with the losses in Civil we are not able to deliver satisfactory
results in Sweden in total. As a consequence, we will do a strategic review of
the Civil operations and implement necessary actions to secure profitability in
Sweden", says Henning Olsen, CEO of NRC Group.
Restoring profitability in Sweden is the main priority for the Group. Henning
Olsen has assumed the duties of the Managing Director in Sweden, as Robert Röder
resigned as EVP and Managing Director for Sweden. Ole Anton Gulsvik, CFO of NRC
Group, has assumed the duties of the Head of Finance in Sweden.
The development in NRC Group's operations in Finland and Norway is according to
plan. Finland continues to deliver strong results with a preliminary EBITA* of
NOK 155 million corresponding to an EBITA* margin of 6.0%. The positive
development in Norway continues with a preliminary EBITA* of NOK 80 million,
representing an EBITA* margin of 3.4%.
The Company expects non-cash impairment charges of NOK 370 million in the fourth
quarter, related to the Swedish business. NRC Group's financial position remains
solid with a cash position per 31 December 2022 of approximately NOK 472
million, net interest-bearing debt of NOK 950 million, and an equity ratio of
The market outlook for rail infrastructure investments is strong, and The
Company's medium-term targets and long-term ambitions remain unchanged.
The Company will provide further information regarding the 2023 outlook in
connection with the fourth quarter 2022 report, scheduled for release on 21
February 2023 at 07:00 CET.
For further information, please contact: Henning Olsen, CEO of NRC Group, + 47
91 74 15 92.
This information is considered to be inside information pursuant to the EU
Market Abuse Regulation, and is subject to the disclosure requirements pursuant
to Section 5-12 of the Norwegian Securities Trading Act.
The stock exchange announcement was published by Siri McKellar Nilsen,
Administration, NRC Group ASA.
Alternative performance measures and definitions:
Operating profit plus amortisations on intangible assets, including intangible
assets such as customer relations and order backlog accounted for as part of the
purchase price allocation under business combinations and IT software
EBITA plus other income and expenses.
EBITA* in relation to operating revenues.
Other income and expenses
Other income and expenses consist of M&A expenses, subsequent adjustment of
contingent considerations or other subsequent adjustments of final purchase
price allocation in business combinations that are recognised in profit or loss.
Net interest-bearing debt
Interest-bearing liabilities minus cash and cash equivalents.
Total equity in relation to total assets.