WEAKER REVENUE THAN EXPECTED
The company reported revenue of NOK 203 million in the 3rd quarter, compared with NOK 207 million for the same quarter in 2008. EBITDA for the quarter was NOK 26 million, compared with NOK 43 million for the 3rd quarter of 2008. This corresponds to an EBITDA margin of 13 per cent for the 3rd quarter of 2009. The operating profit for the quarter was NOK 4 million, compared with NOK 23 million for the 3rd quarter of 2008.
The decline in EBITDA was attributed primarily to a somewhat weaker than expected revenue in July and August, as well as delays in the execution of certain projects. In addition, the company experienced discrepancies in the results of specific projects.
The operating revenues for the respective segments totalled NOK 169 million for Geo Engineering and NOK 34 million for Information Services. Compared with the 3rd quarter of 2008, this represents an increase for Geo Engineering and a slight decline for Information Services.
Revenue totalled NOK 577 million as at 30 September, compared with NOK 648 million as at 30 September 2008. The EBITDA margin was 12 %, compared with 19 % for the corresponding period in 2008.
In spite of the fact that the national mapping services in certain countries are cutting costs and reducing their level of activity, Geo Engineering still showed growth against the 3rd quarter of 2008. This growth illustrates the strength of Blom, since the company is winning new customers and markets in the important Geo Engineering segment. Information Services is still showing a reduced level of activity, due to the general weakness of the navigation, handheld terminal and mobile telephony market. The company's long-term expectations for Information Services remain unchanged.
The company is continuing with its restructuring measures that focus on reducing costs, improving productivity and strengthening synergies between the units.
The company issued a bond loan of NOK 300 million on the Norwegian market on 25 September. The maturity date is 25 September 2012, and we will seek to list the bond loan on Oslo ABM. The net proceeds from the bond loan will be used to refinance existing bank loans and finance the company's general operations. Blom is very satisfied to have secured long-term financing for the company as a foundation for future growth.
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For further information please contact the CEO, Mr. Dirk Blaauw, on tel. +47 22 13 19 23 or CFO Lars Bakklund on tel. +47 22 13 19 34.