Economy

Norwegian lost several billions towards the end of 2018

Norwegian lost NOK 4 billion over the past three months last year, writes E24, which refers to the airline’s preliminary figures for the fourth quarter of 2018.

– Norwegian has never really had financial problems. We have been in a build-up phase and it costs to expand. But now we are done with most of the growth, said CEO Bjørn Kjos Tuesday, according to E24 .

Norway’s preliminary figures for the fourth quarter last year show that the company’s turnover was NOK 9.6 billion, up from NOK 7.8 billion in the same period in 2017. However, in the same period, profit before tax, interest and depreciation from NOK -652 million to -3, 11 billion.

According to E24’s calculations, Norwegian’s equity fell by NOK 3.58 billion, only 200 million above the minimum requirement.

– They lose NOK 1.8 billion on fuel security alone. The figures seem to be in line with my expectations, says analyst Preben Rasch-Olsen in Carnegie. The company has estimated that expensive oil prices, rising growth and a tougher market will lead to a more robust result.

The strong growth in Norwegian in recent years has affected the financial situation. Several analysts have expected that the airline would soon struggle to keep the terms of several of its loans.

On Tuesday it became known that Norwegian raises NOK 3 billion in equity. With the share issue, the company should be able to control the conditions for its loans.

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