Head Energy reports new orderbook-record after a strong H1-2018

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Head Energy reports new orderbook-record after a strong H1-2018

Head Energy posts an orderbook of mNOK 345 as per June 30, 2018. The orderbook has more than doubled since June 30, 2017 and increased 50 percent since year-end 2017. Head Energy’s contract portfolio is robust regarding customer spread and quality, project duration, segment distribution and profitability, indicating improved margins going forward.

Business units

Head Energy has four business units: Consulting; Engineering, Offshore Wind and Onshore Infrastructure.

Consulting (technical consultants / engineers working for Oil & Gas customers primarily in Norway) now represents 55 percent of the orderbook, versus 65 percent last year.

Engineering – Topside and Subsea – represents 25 percent of the orderbook, versus 28 percent last year.

Offshore Wind represents 9 percent, compared to 7 percent last year.

Onshore Infrastructure now represents 10 percent of the orderbook.

The Onshore Infrastructure unit, Head Energy Infra AS, did not exist as a separate business unit or company last year. Head Energy Infra AS was founded as recently as February 2018 to serve infrastructure customers in Norway with technical consultants (engineers and project managers). Our Infra-consultants are working primarily with projects related to onshore energy generation and distribution, public transportation construction projects and other large and complex onshore construction projects. We are very pleased with the development of Head Energy Infra.

In sum, the high-margin units now represent almost 45 percent of the orderbook, compared to approximately 35 percent last year.

Markets

Head Energy serves three market segments: Oil & Gas; Offshore Wind and Onshore Infrastructure.

Going forward, Head Energy will continue the expansion of the Offshore Wind and Onshore Infrastructure units to approach the target of these two business segments combined representing 50 percent of the total orderbook. As per June 30, 2018, Oil & Gas represents 81 percent, Offshore Wind 9 percent and Onshore Infrastructure 10 percent, and demand from Oil & Gas customers is currently very robust.

Meeting the 50 percent orderbook target for “non-oil” will thus require extra focus and resources going forward, but Head Energy is committed to reduce its oil-dependence and to actively position the Company in a more balance energy landscape, in which renewable energy plays an important part.

 

Bergen, 12 July 2018

Nils Haukeland, CFO Head Energy Group

2018-07-12T11:19:24+00:00July 12th, 2018|