Offshore Division Delivers 'Satisfactory' Result for Bergen Group

Norway's Bergen Group announced Wednesday that its offshore division delivered another "satisfactory" result for the fourth quarter of 2011, with revenue of $62.1 million (NOK 357 million) and an EBITDA profit of $8.9 million (NOK 51 million) compared with revenue of $55.5 million (NOK 319 million) for 4Q 2010 and an EBITDA loss of $313,000 (NOK 1.8 million).

 

The offshore division, said the firm, achieved a "major improvement" in cumulative revenue throughout the year compared with 2010. EBITDA for 2011 came in at $34.6 million (NOK 199 million) compared with a $5 million (NOK 28.5 million) loss in 2010.

 

However, the firm's order book for its offshore division by the end of 2011 was $132 million (NOK 758 million), significantly down from the $191 million (NOK 1.1 billion) it stood at a year earlier. Bergen said that the Kvitebjørn-project, awarded by Statoil in Q4 2010, is the major contributor in the division’s order book.

 

Bergen Group Rosenberg’s key projects in 4Q 2011 were the Kvitebjørn EPCIc contract and the Eldfisk Bravo Reinforcement EPCI.

 

The Kvitebjørn EPCIc contract will generate a growing level of activity at Bergen Group Rosenberg in quarters to come, with an estimated peak in 2012, said the firm. The work under the contract, which also includes modifications for tie-in of the future Valemon development, is scheduled to be completed in 1Q 2014.

 

Bergen added that its YME project also generated on and offshore activity in 4Q 2011, but at some reduced level from previous quarters, but that the activity level for Bergen Group Rosenberg for this project in 2012 has not been clarified.

 

The firm said its Bergen Group Rosenberg oil and gas services business continues to expand its engineering capacity as part of a dedicated growth strategy.

 

On Feb. 1 2012 the subsidiary announced a letter of intent to buy the majority shareholding in engineering company Origo Process in Stavanger, Norway. This business is a well-established supplier of process expertise to the oil and gas industry, said Bergen.

 

The tender activity for ECPI (engineering, procurement, construction and installation) contracts within the 'major modification' and the 'modification and maintenance' segments of the market is expected to continue at a high level in the years to come. Bergen Group Rosenberg, said the firm, is well situated to strengthen its position within these two market areas. 

 

Meanwhile, the subsea market outlook is also strong, said Bergen. In 4Q 2011 Bergen Group Rosenberg continued work under an EPC (engineering, procurement and construction) contract for a subsea manifold as well as tendering for new contracts to be awarded in 2012. 

 

In addition, the EPCIc contract awarded by Statoil in November 2011, related to the dismantling of permanent deck cranes on the Gullfaks A and C Platform, represents "an interesting niche" in the EPCIc brownfield modification market and is considered an area with potential for further development, said Bergen.

 

The firm also said that its Bergen Group Hanøytangen business experienced a quarter of satisfactory capacity utilization at the yard facilities.

 

Two different rig projects have generated revenue at Hanøytangen in 4Q 2010. The Transocean Winner project completed a 60-day yard stay on time during the last week of October. In November, Hanøytangen also carried out a one-week rig project at the accommodation rig Safe Scandinavia. 

 

In October, Bergen Group Hanøytangen received a contract from Bluewater Industries, for a long-term storage contract for a platform hull coming from China. The arrival was originally planned for July 2012, but the contractor has now indicated a postponed deliver until the first half of 2013. The hull is for the new Octabuoy platform, which is to be installed at the Cheviot Field in the UK sector of the North Sea.