Record revenues, acceptable profitability, and solid strategic development.

Head Energy reports preliminary 2022 revenues of mNOK 978, up 51% compared to 2021-revenues. 2022-profit margins are slightly lower than in 2021, primarily due to strong growth in segments with limited margin potential and launch of several new entities.

The preliminary 2022 figures show an EBITDA-margin of 5,1%, down from 5,4% in 2021. The margin drop is due to persistently strong growth in the consulting segment, characterized by tough competition and limited margin potential compared to other business units, and the launch of several new entities throughout Scandinavia and in Hamburg, Germany. The new entities require some time before adequate profitability is reached. The Group EBITDA, in Norwegian currency, increased approximately 43% in 2022 compared to 2021.

The Norwegian Consulting unit is still the biggest entity in Head Energy Group, but Head Energy’s engineering units, operating in the Building and Construction segment, Offshore Wind and Energy Engineering, delivered significantly higher revenues and margins in 2022 compared to 2021, and higher revenue-growth than Head Energy Consulting.

The year-end 2022 orderbook equals a record mNOK 1,150, up approximately mNOK 395 compared to year-end 2021.

The orderbook growth reflects an overall positive market situation and satisfactory demand in all of Head Energy’s market segments – uncertainty is mainly related to the outlook for Building & Construction related activities and to the consequences of the new rules for hire of temporary personnel that the Norwegian government has decided. Head Energy’s Engineering units, both in Norway and Denmark, have solid orderbooks entering 2023 and expects profitable growth. The Swedish operations develops positively and will seek further expansion in 2023.

In total, Head Energy expects continued revenue growth in 2023, but somewhat lower margins, mainly due to the significant hike in employer’s tax in 2023 (from 14,1% to 19,1%), adopted by the Norwegian government.

Head Energy Group continues the strategic work of developing the operations in accordance with adopted plans and is satisfied with the situation going into 2023.

Bergen, 7 February 2023

Torbjørn Kvalsund,
CFO Head Energy Group