After a loss-making 2016, Head Energy turned to profits in 2017 and is back on the growth path with twenty percent revenue expansion. All operating subsidiaries made a profit in 2017, for the first time in Head Energy’s history.
Head Energy generated revenues of approximately mNOK 229 in 2017, up 20% from 2016, but significantly below the 2014 and 2015 levels of mNOK 295 and 318 respectively. Many Head Energy units set new records in 2017, however, most notably our two youngest subsidiaries, Head Energy Denmark, our offshore wind operation based in Esbjerg, and Head Energy Solve, our topside engineering business located in Bergen and Stavanger. Head Energy Denmark and Head Energy Solve posted 2017 revenues of mNOK 25 and 39 respectively.
Head Energy returned to profits in 2017, delivering EBIT of mNOK 3,1 and a net profit of mNOK 1,9, compared to minus 11,4 and 9,2 respectively in 2016.
The turnaround is the result of a fantastic team-effort. Twenty percent revenue growth is notable, and it is great to return to profitability, despite low margins, after a disastrous 2016.
Head Energy’s order book is now at record levels, boosting 2018 revenues and margins. We expect higher revenue-growth in 2018, hoping to pass the mNOK 300-level for the first time since 2015. We also anticipate our EBIT margins to double in 2018 compared to 2017.
All our operating units currently experience significant demand from customers in our three market segments; Offshore Oil & Gas, Offshore Wind and Onshore Infrastructure. In 2017, we delivered solid growth in Offshore Wind (Consulting and Marine Operations) and Oil & Gas Engineering. In 2018, we expect similar growth-levels from our Consulting division, our largest unit, primarily driven by rebound in the Oil & Gas segment.
Our long-term goal is for Oil & Gas to represent no more than 50% of our total order book. Currently, Oil & Gas represents 75 percent, Offshore Wind 16 percent and Onshore Infrastructure 9 percent.
To step up our Onshore Infrastructure effort, a new subsidiary, Head Energy Infra AS was launched in February 2018. Head Energy Infra targets large infrastructure customers, typically within power generation and transmission, rail, industry, large construction projects and so forth.
Driven by positive market conditions and outlook, we remain optimistic with regards to the development of Head Energy’s business units both in Denmark and Norway – our goals are ambitious, however, aiming for mNOK 500 revenues and 5 percent EBIT margin by 2020.
Head Energy Group