Market
The divide in the Norwegian economy was pronounced also in 2016, with the oil sector continuing to slow and shrink at the same time as other industries grew. This was also reflected in our portfolio companies, with those that target the oil sectors encountering challenging market conditions. Businesses exposed to other markets, such as for example Norwegian consumer goods, achieved growth in 2016.

Ferd Capital continued its focus in 2016 on investment opportunities that make use of Ferd’s competitive advantages, such as its flexibility and ability to take a long-term approach. In the market for more traditional transactions we again experienced a high level of competition, and we expect this to continue.

Ferd Capital continued its focus in 2016 on investment opportunities that make use of Ferd’s competitive advantages, such as its flexibility and ability to take a long-term approach.

Portfolio companies
2016 was an eventful year for many of our portfolio companies:

• Aibel has worked systematically to improve its competitive position, and this delivered results in the form of high order intake and efficient delivery of existing contracts. Towards the end of 2016 Aibel won four important contracts representing total contract value of more than NOK 5 billion. The company also carried out a successful refinancing, providing Aibel with a solid long-term financial platfo
   
• Interwell managed to deliver an acceptable performance in 2016, with good growth achieved in the North Sea, the USA and the UK, while the Middle East was challenging. The company took important new steps in the development and commercialisation of a permanent plugging solution for wells (P&A).
   
• Elopak continued its program for developing and growing its business. Its focus on the aseptic packaging market progressed well, with a high level of growth achieved in the roll fed aseptic carton area as well as the commercialisation of its aseptic filling machinery for dairy products. Elopak is also witnessing strong demand growth in North America following the opening of its new factory in Montreal.
   
• Mestergruppen acquired two member-owned chains in 2016: the Byggtorget building materials chain, which was acquired in May, and Nordek, which comprises the XL-Bygg building materials chain and the Blink Hus house builder chain, which was acquired in November.
   
• Swix retained the top spot in the Norwegian sports industry national supplier test for a third year, having won for the first time in 2014. Swix made good progress in its work on building a strong position in the outdoor market, with more than 35% of its revenue coming from this segment in 2016.
   
• Servi again encountered difficult market conditions in 2016 as a result of the slowdown in the offshore segment and particularly the lower level of activity in new build rigs. Due to lower activity level, Servi had to reduce its workforce further and to implement more measures to increase its competitiveness.
   
• Fjord Line achieved passenger growth of approximately 10% in 2016, with the Sandefjord-Strømstad route particularly contributing to this. In addition, its profitability improved as a result of the company in-sourcing its tax-free operations on all ferries, and the authorisation to carry domestic passengers and cargo on the route between Bergen and Stavanger.

Transactions

Ferd Capital acquired stakes in the listed companies Scatec Solar and Benchmark Holdings in 2016 and also increased its ownership interest in PGS by participating in a rights issue that the company carried out in November 2016. Ferd Capital wishes to actively contribute to the development of these companies.

With regard to the business area’s private company mandate, we acquired two member-owned chains through Mestergruppen, and we also participated in the re-financing of Aibel and Servi.

Special Investments made six investments in 2016. These were primarily equity-related investments starting at NOK 50 million and above, and were made both directly and in partnership with other organisations.

Organisation

Ferd Capital has a portfolio of strong companies that are well-placed to continue to create value in 2017. Ferd also has sizeable unused investment capacity, and will focus on working proactively on new investment opportunities, both in the form of add-on investments to existing portfolio companies and potential new portfolio companies.

Future prospects

Ferd Capital has a portfolio of strong companies that are well-placed to continue to create value in 2017. Ferd also has sizeable unused investment capacity, and will focus on working proactively on new investment opportunities, both in the form of add-on investments to existing portfolio companies and potential new portfolio companies.

Ferd Capital has a portfolio of strong companies that are well-placed to continue to create value in 2017.