Oslo, Tuesday, October 26, 2010

Blom held the 3Q report presentation today, October 28th 2010, at Vika Atrium. The presentation can be dowloaded here. The presentation was webcast.

3Q Result Presentation

3Q 2010 Report (in full)

Yet another challenging quarter

The company posted revenues of NOK 165 million in the 3rd quarter, compared with NOK 203 million for the same quarter in 2009. EBITDA for the quarter was NOK 33 million, compared with NOK 26 million for the corresponding quarter in 2009. This corresponds to an EBITDA margin of 20 per cent, compared with 13 per cent in the 3rd quarter of 2009. The operating profit for the quarter was NOK 10 million, compared with NOK 4 million for the same period in 2009.

The operating revenues for the respective segments totalled NOK 110 million for Geo Engineering and NOK 55 million for Information Services in the 3rd quarter. The comparative figures for the 3rd quarter of 2009 were NOK 169 million for Geo Engineering and NOK 34 million for Information Services.

The demand for the company’s contractual services, for which the public sector is the largest customer group, has been marked so far in 2010 by a continuing weak economy in a number of countries in which we have a significant portion of our operations. This has resulted in temporary pressure on the prices in parts of our operations and delayed call-off orders under framework agreements. Revenues in Geo Engineering are expected to be lower in 2010 than in 2009.

The backlog of orders that are to be filled next year is greater than at the same time last year. The company has chosen to focus on services for which satisfactory margins can be achieved, which is expected to improve our profitability when the orders are filled in 2011. In addition, due to the weak macroeconomic conditions, the company has reduced its workforce and implemented other cost savings, which are expected to give annualised savings of around NOK 50 million. The company is expected accordingly to generate stronger margins in 2011 than in the current year.
In the Information Services area the company has reorganised and accelerated the build-up of its own sales force during the quarter. In combination with the implementation of a more sales-oriented partnership, over time these measures are expected to improve the company’s ability to sell the same data to multiple customers through different distribution channels. 

For further information please contact:

CEO, Dirk Blaauw, on tel. +47 22 13 19 20 or 
CFO Lars Bakklund on tel. +47 22 13 19 34.
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