Multiconsult third quarter 2022 – Continued good results and operational performance

Oslo, Norway, November 2, 2022 /PRNewswire/ — Multiconsult ASA (OSE: MULTI) Multiconsult’s third quarter EBITA was NOK 67.8 millionwhich gives an EBITA for the first nine months of 2022 of NOK 311.7 million. The EBITA margin for the quarter was 7.7% and 10.2% since the beginning of the year. Strong operational performance and a high level of activity throughout the quarter led to net operating income growth of 13.8% for NOK 876.0 million. Organic revenue growth was 7.9%, driven by higher billing rates, a higher billing ratio and a higher number of employees. The result is impacted by the restructuring of LINK Arkitektur Sweden and the recognition of income on the insurance settlement of NOK 13.6 million in the neighborhood.

The positive trend and market strength continued throughout the quarter despite geopolitical instability, rising energy costs and high inflation. The overall market outlook for Multiconsult’s services is expected to remain good and stable with a solid level of activity in both the public and private sector, supported by a strong pipeline. Multiconsult has a diversified portfolio of ongoing projects and a stable and solid order book.

“In the third quarter of 2022, Multiconsult delivered a strong operational performance and another strong quarter with a good result, an increase in order intake and revenue growth. Supported by a strong market and with increased capacity from acquired companies and organic growth, we succeeded with a good start after the summer break.” said Grethe Bergly, CEO of Multiconsult ASA. “Overall, Multiconsult is well positioned to benefit from positive market dynamics, and I am happy to see that Multiconsult’s competence is sought after by our clients in their challenges facing the current energy transition and the green shift.”

Third quarter 2022
Net operating income reached NOK 876.0 million (769.6), an increase of 13.8% compared to the same quarter last year. The increase in net operating income is partly influenced by revenues from acquired companies. The revenues of the acquired Erichsen & Horgen group are only included in part of the comparable period – September 2021. Growth is also impacted by the recognition of income from an insurance settlement of NOK 13.6 million. Compared to the same period last year, organic growth in net operating income is estimated at 7.9% after adjusting for acquisitions and insurance settlement. Higher average billing rates and a higher billing ratio had a positive effect on net operating income compared to the same quarter last year.

Operating expenses increased by 12.1% for NOK 757.3 million (675.4). Personnel expenses increased by 11.1% compared to the same quarter in 2021. This increase is mainly attributable to the increase in personnel expenses caused by the ordinary adjustment of salaries starting July 1, the increase in the headcount level resulting from acquisitions and net recruitment. Other operating expenses increased to NOK 121.6 million (103.5) partly due to acquired businesses with higher office expenses. In addition, other operating expenses generally increased as business activities return to a normal post Covid-19 situation.

EBITDA was NOK 118.7 million (94.1), an increase of 26.1 percent over the same period last year, reflecting an EBITDA margin of 13.5 percent hundred (12.2) in the neighborhood.

EBITA was NOK 67.8 million (46.0), reflecting an EBITA margin of 7.7 for hundred (6.0) in the neighborhood. EBITA and EBITDA were positively impacted by the recognition of insurance settlement revenue.

Year to date 2022
Net operating income increased by 12.0% for NOK 3 062.6 million (2,735.4), compared to the same period last year. The increase in net operating income is positively influenced by revenues from acquired companies and higher billing rates compared to the same period last year. The billing ratio was 70.7 per hundred (70.3) and contributed positively to the growth of net operating income. Compared to the same period last year, organic growth in net operating income is estimated at 4.0% after adjusting for the calendar effect, insurance settlement and acquisitions.

Operating expenses consist primarily of employee benefit expenses and other operating expenses. The declared operating expenses amount to NOK2 598.8 million (2,332.4), an increase of 11.4% compared to the same period last year. Expenses related to employee benefits increased by 9.7% compared to the same period in 2021. This increase is mainly due to the increase in the level of staff resulting from acquisitions, net recruitment and the regular adjustment of salaries . Other operating expenses increased to NOK 380.9 million (310.4) during the period, mainly an effect of additional operating costs resulting from previous acquisitions such as office costs. In addition, other operating expenses, including selling, marketing and travel expenses, increased as business activities returned to normal post-Covid-19.

EBITDA was NOK 463.8 million (403.1), an increase of 15.1% compared to the same period last year.

EBITA was NOK 311.7 million (259.1), an increase of 20.3% year-on-year, reflecting an EBITA margin of 10.2%.

The market outlook for Multiconsult’s services should remain good, supported by a high level of activity in both the public and private sectors. The opportunities in the pipeline are at a high level and the overall market outlook across Multiconsult’s four business areas remains generally strong. Multiconsult is experiencing a strong market in the traditional consultancy and engineering market in the construction industry.

Multiconsult has a diversified portfolio of ongoing projects and a stable and solid order book. In Norway, Multiconsult is well positioned for several of the major projects proposed in the Norwegian national budget for 2023 and expects to benefit from market growth for long-term sustainable transformation across all business areas. This is driven by ongoing industry-led initiatives and policy initiatives both in Norway and abroad.

In the building and real estate market, the trend towards sustainable transformation and rehabilitation continues with an increased volume of projects related to energy saving in buildings. The infrastructure market should remain at a high level. The 2023 national budget shows a direction towards a lower level of investment in infrastructure in a long-term perspective. The energy market is expected to increase due to the increase in energy demand and the increase in energy costs. The international hydropower market continues on a positive trajectory, projects are starting up and new opportunities are being entered into the pipeline. The hydropower market in Norway is mainly related to rehabilitation and energy optimization. The announced increase in hydro and wind related taxes in the 2023 national budget has increased uncertainty for new investments. The offshore wind market is mainly linked to early phase studies and generates opportunities for Multiconsult. The maintenance backlog of water and sanitation infrastructure is significant, which, combined with a growing market for climate change adaptation and environmental remediation, indicates good market prospects in this area . The 2023 national budget shows slightly higher investments related to natural hazards and climate change initiatives.

Multiconsult is exposed to the general uncertainty caused by a more unstable macro and geopolitical environment and sees challenges regarding the proposed increase in employers’ tax in the national budget as this will increase our costs.

For a full review of our report, please refer to our Third Quarter 2022 report.

Presentations today November 2, 2022:
Participants are invited to attend the Norwegian presentation to be held at the Felix Conference Centre, Bryggetorget 3, Oslo, at 08:30 (CET). The results will also be presented via a live webcast: in Norwegian at 08:30 (CET) and in English at 09:30 (CET). Participants will have the opportunity to submit questions online throughout the webcast sessions.

The Norwegian presentation at 08:30 can be accessed on:
https://channel.royalcast.com/landingpage/hegnarmedia/20221102_1/

The presentation in English at 09:30 can be accessed at:
https://channel.royalcast.com/landingpage/hegnarmedia/20221102_2/

Live webcasts, full report, presentation and webcast recording will be available at www.multiconsult-ir.com and https://newsweb.oslobors.no/

For more information, please contact:

Investor Relations:
Ove B. Haupberg, Chief Financial Officer
Telephone: +47 401 00 900
Email: [email protected]

Media:
Gaute ChristensenVP Communications
Telephone: +47 911 70 188
Email: [email protected]

The following files are available for download:

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