20/03-2017 19:28:25: (RENO) RenoNorden ASA: Trading update
Reference is made to the operational issues announced by
RenoNorden ASA ("RenoNorden" or the "Company") during the
second half of 2016. Several of the onerous contracts
referred to in such announcements commenced operation in the
beginning of 2017, and the commencement reveals that the
Company is facing additional unavoidable costs compared to
those included in the Q2 2016 re-calculations.
Some of the extra costs are one-offs that will negatively
affect the result for Q1 2017 only, and some are increased
costs going forward.
In addition, contracts in Denmark without local tariff
agreements are running with more man-hours than planned due
to unexpected high sick leave, which results in increased use
of overtime and extra personnel.
The above is estimated to reduce the Q1 2017 EBITDA margin by
approximately 4 percentage points compared to the EBITDA
margin achieved in Q1 2016. Post Q1 2017, the EBITDA margin
throughout the coming quarters is expected to remain below
last year, but with less deviations than in Q1 2017.
The Company's management has implemented several actions to
mitigate the increased operational risks in the above-
mentioned contracts and the Company is in dialogue with
customers to improve operations.
For further queries, please contact:
Øystein Disch Olsrød
Group CFO of RenoNorden ASA
Tel: +47 91602226
This information is subject to the disclosure requirements
pursuant to Section 5-12 of the Norwegian Securities Trading
RenoNorden is the market leader in waste management and
transportation in the Nordic countries, serving more than 300
municipalities. The group has about 2,000 employees and 2016
revenues of NOK 1.8 billion. The company is listed on the
Oslo Stock Exchange with the ticker RENO. More information at
Ekstern link: http://www.newsweb.no/index.jsp?messageId=423034
Nyheten er levert av OBI.