Norway’s Bergen Group cut its loss in the fourth quarter but saw lower earnings for its offshore division amid an ongoing restructuring to boost longer-term profitability.
shipbuilding and marine service yard group reported a quarterly net loss from
continued operations of Nkr76.5 million ($12.6 million), compared with a
reversal of Nkr537.6 million a year earlier, on revenue up 47% at Nkr715.5
also narrowed its full-year net loss to Nkr158 million, from Nkr752.7 million a
year earlier, as revenue increased 55% year on year to nearly Nkr3.1 billion.
offshore division tumbled to a quarterly net loss of Nkr39.2 million, versus a
year-earlier profit of Nkr15.3 million, largely due to lower activity as construction
work is carried out to improve yard facilities at its Hanoytangen site on
Norway’s west coast.
division also suffered from a loss of Nkr33.4 million on the disposal of its
Kimek outfit as part of a streamlining effort by the group to cut costs and
lift profit margins.
Group is already well under way with further developing Hanoytangen to include
far more offshore-related business area than rig service. We expect this process
to yield a significantly better foundation for healthy and stable growth in the
years to come,” said chief executive Asle Solheim.
business areas – rig & maritime service, subsea & offshore service and
decommissioning – are now being established at Hanoytangen as part of the
corporate revamp, which has also involved a refinancing to secure liquidity for
said the group expects to complete its acquisition of Norwegian decommissioning outfit
Scanmet this summer.
division has though recently secured work on Floatel International’s
accommodation unit Floatel Superior that will be carried out in the first
is set to finalise the sale of its majority stake in NorYards that owns the
loss-making shipbuilding division to Calexco in the first quarter, having last
year sold its offshore fabrication division to Australian contractor Worley
Parsons for Nkr1.1 billion.
Group’s order book stood at Nkr2.1 billion at year-end, including Nkr87 million
for its offshore and services divisions.