Norisol has turned major deficit from a loss-making project to a minor deficit for the Group. Cash-flow from operating activities was 40 million in 2015 compared to 28 million in 2014. Especially the performance of the Danish business has exceeded all expectations with a turnover above the high level from 2014 and an EBITDA margin of no less than 7% compared to 4.3% last year.
We have had a busy year with some major changes and the results are beginning to show. Our turnaround has not yet been completed, but in 2015 we have shown that Norisol has a sound future, based on profitability.
We have become significantly better at optimizing projects so that they can be executed in a manner that benefits both our customers and ourselves. In parallel with our work to complete the unprofitable projects, we are consistently building up a strong, forward-looking platform. We are particularly focusing on improving efficiency, organization and risk management.
As we set higher performance standards, we expect more from our human resources. We will continue to invest in our employees in order to make sure that we can continue to grow our company.
Loss-making project in Norway
The result for 2015 is largely influenced by the deficit of the Edvard Grieg project in Norway. The project was a contract on a fixed price basis. The work is performed at a shipyard onshore in the oil / gas segment, and the contract was highly unfavorable for Norisol Norway. It has led to the CEO in Norway has been replaced in 2015 and 2016 is expected to be a “reorganization-year”.
It has been decided that Norisol Norway in the future will not be taking on projects on fixed price conditions for onshore shipyards in the oil / gas segment with significant risks. We have an expectation that the Norwegian company has positive earnings in the future.
A major deficit in Norway has been absorbed in the activities for the Group
The Edvard Grieg project affects profit negatively by just over 40 million NOK. If the financial statement is “cleaned” for this project, other operations are healthy and profitable. A turnaround with visible results in 2014 and 2015 confirms that our improvements are leading to a bright future.
We believe that the activities and especially the result for Denmark and Sweden for 2015 can be qualified as satisfactory. Norisol has achieved significant improvements in terms of risk management, profitability and customer orientation and further progress is expected in these areas.
In 2015 the revenue was DKK 1,174 million. The EBITDA was 30 million, which was a margin of 2,6%.
The Board of Directors has adopted a new strategy framework focusing on profitability. The focal point of our strategy is productivity, a tight risk model and profitability requirements. Our task is to improve productivity in all we do. This will ensure a sound financial position for the company, but optimum productivity is also our guiding principle in every single customer contact, in all our collaborative relationships and on every single project. In this way we will also play our part in increasing productivity in the industry and the community as a whole.
The expected development in 2016 and the many initiatives put in place will have an increasingly positive effect on our operations and the profitability of our projects.
We aim to meet our target of an EBITDA margin of 4% by the end of 2016.