Note 1 - Beerenberg

Management report
International
activities
Financial matters
Beerenberg has clear ambitions and targets in relation to
the export-based petroleum industry. The company’s export
products are based on highly advanced technology (intellectual
property rights), and the company focuses strongly how
to build barriers against imitation and copying.
The export share of Beerenberg’s output is rising steadily.
The company carried out assignments in the US,
Kazakhstan, Britain, Malaysia, Denmark, Angola and
Nigeria in 2012. We are also waiting for the outcome of a
number of tender bids made in our defined export markets.
The bids concern services relating to in-house technologies
such as RAT, MM&A, Benarx, Sveisolat and Subsea
Insulation.
Beerenberg has entered into partnership agreements with
a number of international businesses in recent years. The
company’s partners are based in the UK, US, Kazakhstan,
Angola, Nigeria and Malaysia. In 2013 the company expects
to see significant growth outside Norway.
Consolidated EBITDA (earnings before interest, taxes,
depreciation and amortisation) stood at NOK 172.7 million
(NOK 127.9 million) – an increase of 35.0%.
Operating profits (EBIT) rose by 40.3% from NOK 92.9
million in 2011 to NOK 130.3 million.
Cash flow Operational cash flows totalled NOK 136.8
million.
Underlying operations are sound, and the company is generating
a healthy cash flow from its ongoing activities.
The group has consolidated its operations and has focused
on increasing its revenues. Tied-up working capital remained
stable since the last year end but saw seasonal fluctuations
throughout the year. Given the company’s growth
forecasts for 2012, there is reason to believe that working
capital will increase somewhat during 2013.
Investments The group’s total investments stood at NOK
44.6 million, of which NOK 10.2 million was related to operating
equipment developed by the company for the decommissioning
market and NOK 9.2 million to the establishment
of a new production line for Benarx products.
Financing The group has a loan with Fokus Bank of NOK
43 million. Its total credit facility with Fokus Bank is NOK
90 million, which offers the company flexibility during the
growth phase it is currently in. The group has a total credit
and guarantee limit of NOK 175 million
Beerenberg Corp. AS has given a loan to Beerenberg
Holding AS. The loan is subject to variable interest based on
12-month NIBOR + 2% per annum.
Beerenberg Holding AS refinanced its debts during 2012 and
has reduced its liability to Beerenberg Corp. AS, which has
helped boost liquidity at Beerenberg Corp. AS.
Financial risk With its financing structure and current
agreements, the group seeks to reduce its exposure to fluc-
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