Head Energy delivers 56% revenue growth during the first six months of 2019. The EBIT-margin jumps to 6,8%, up from 4,5% in H1-18. The orderbook reached mNOK 423 at 30 June 2019, a new record, providing good visibility for the second half of 2019.
Head Energy posts first half 2019 revenues of mNOK 224,6, compared to mNOK 143,8 last year. 56% revenue growth is solid; however, somewhat lower growth rates are expected going forward.
Boosted by higher volumes and efficient operations, the first half EBIT-margin equals 6,8%, up from 4,5% last year. We expect higher EBIT-margin for the second half of 2019.
Good operations in competitive markets
The first half revenue growth is driven by good operational performance and good HSEQ-statistics, thanks to our efficient staff. We have hired additional personnel in H1-19 and invested in systems, business development activities and quality improvement initiatives to create more customer-value going forward.
Demand for our services remains strong. Competition is tough, however, and our customers are cost focused. The cost focus particularly applies to the Oil & Gas and Offshore Wind Segments. The Onshore Infrastructure segment offers good margins – although securing qualified personnel remains a challenge.
We have won additional contracts and frame agreements in 2019 and continue to expand our customer base. The first half tender activity was record-high, and we are awaiting the results from several recent tender processes.
With more customers and higher market shares, we have strengthened our position in all our market segments.
Key financial figures (preliminary, un-audited)
Outlook
We expect somewhat lower, but still satisfactory, revenue growth in H2-19. At the same time, we expect higher EBIT-margins in H2-19 compared to H1-19.
Overall, we remain growth focused, and we will focus on both organic growth and attractive strategic growth opportunities going forward.
Bergen, 7 August 2019
Nils Haukeland
CFO Head Energy Group