DOVRE GROUP TRADING STATEMENT JANUARY 1 – SEPTEMBER 30, 2016

Espoo, Finland, 2016-10-27 07:45 CEST (GLOBE NEWSWIRE) --  

Dovre Group Plc                               Stock exchange release                   October 27, 2016 at 8.45 a.m.

DOVRE GROUP TRADING STATEMENT JANUARY 1 – SEPTEMBER 30, 2016

NEAR BREAK EVEN DESPITE VERY CHALLENGING ENVIRONMENT

Dovre Group Plc issues today a trading statement for the nine months ended on 30 September 2016. The figures presented in this trading statement are not audited. Last year’s corresponding period in parentheses. Comparatives for 2015 include Norwegian Petroleum Consulting Group AS (NPC) as part of Dovre Group’s Project Personnel business area as of May 28, 2015.

July – September 2016

• Net sales EUR 17.9 (30.8) million – decline 42%
• Project Personnel: net sales EUR 16.4 (29.2) million – decline 44%
• Consulting: net sales EUR 1.5 (1.5) million – decline 4%
• Operating result EUR -0.1 (0.2) million
• Net cash flow from operating activities EUR 0.8 (0.7) million
• Nine new frame agreements secured

January – September 2016

• Net sales EUR 65.7 (85.7) million – decline 23%
• Project Personnel: net sales EUR 60.6 (80.2) million – decline 24%
• Consulting: net sales EUR 5.2 (5.5) million – decline 5%
• Operating result EUR 0.0 (-0.4) million
• Net cash flow from operating activities EUR -0.9 (-2.4) million

Guidance for 2016 (unchanged): Net sales are expected to be EUR 80 - 100 million and operating result is expected to be positive.

PATRICK VON ESSEN, CEO:

“In Q3 we showed that we can almost break even, despite significantly lower demand and prices compared to a year ago.The business environment for Project Personnel services in upstream oil & gas is cut-throat. However, our strategy of de-risking, diversification and cost adaption is working: Our client portfolio is now more robust and diversified than ever before. The new client segments – energy, infrastructure and industry - continue to grow, currently representing about a third of our total volume. We have exceeded our targets for improving our cost efficiency. Going forward, we continue to grow our new client segments.

We expect the oil & gas service market to bottom out in 2016 and a gradual increase to begin during the year 2017.

Our Consulting business continues its strong performance, once again delivering a solid operating profit. The outlook for Consulting remains good, driven by new frame agreements and orders.  

During Q3 Dovre Group secured a total of nine new frame agreements with six Clients. The majority of the frame agreements were with non-oil & gas Clients.”

NET SALES

In Q3, Dovre Group’s net sales declined by 41.8% and were EUR 17.9 (30.8) million. Project Personnel accounted for 92 (92) % and Consulting for 8 (8) % of the Group’s net sales. Project Personnel’s net sales were EUR 16.4 (29.2) million, while net sales for Consulting totalled EUR 1.5 (1.5) million. 

During the period under review Dovre Group’s net sales declined by 23.3% and were EUR 65.7 (85.7) million. Project Personnel accounted for 92 (92) % and Consulting for 8 (8) % of the Group’s net sales. Project Personnel’s net sales were EUR 60.6 (80.2) million, while net sales for Consulting totalled EUR 5.2 (5.5) million.

In 2015 during the period under review, the Group’s net sales including NPC (pro forma) would have been about EUR 110 million.

OPERATING RESULT

In Q3, the Group’s operating result was EUR -0.1 (0.2) million. Project Personnel’s operating result was EUR 0.0 (0.4) million. Consulting business area’s operating result was EUR 0.2 (0.2) million. The operating result of the Group’s Other functions was EUR -0.2 (-0.3) million.

During the period under review, the Group’s operating result was EUR 0.0 (-0.4) million. Project Personnel’s operating result was EUR 0.5 (0.8) million. Consulting business area’s operating result was EUR 0.7 (0.6) million. The operating result of the Group’s Other functions was EUR -0.9 (-1.5) million. In 2015 the operating result of the Group’s Other functions included EUR 0.5 million costs related to external advisory services in NPC transaction.

*) Unallocated expenses include customer agreements and relations and their amortization, as well as share-based compensation recognized as expense in the income statement.

PERSONNEL

On September 30, 2016, Dovre Group employed 489 (766) people, of which 442 (717) were employed by Project Personnel, 41 (44) by Consulting and 6 (5) by Other functions.

CASH POSITION

On September 30, 2016, the Group’s net debt was EUR -3.1 (-1.8) million. The Group’s cash and cash equivalents totaled EUR 7.0 (8.4) million. The Group’s interest-bearing liabilities were EUR 3.9 (6.6) million, of which EUR 2.1 (4.2) million were current and EUR 1.8 (2.4) million non-current.

In Q3 net cash flow from operating activities was EUR 0.8 (0.7) million, which includes EUR 0.9 (0.2) million change in working capital. 

In Espoo, October 26, 2016


DOVRE GROUP PLC
BOARD OF DIRECTORS


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

Dovre Group is a global provider of project management services. Dovre Group has two business areas: Project Personnel and Consulting. Dovre Group has offices in Canada, Finland, Norway, Russia, Singapore, the UAE and the US, and employs about 500 people worldwide. Dovre Group is listed on the Nasdaq Helsinki (symbol: DOV1V). Company web site www.dovregroup.com.

Distribution:
Nasdaq Helsinki Ltd
Major media
www.dovregroup.com