Double-digit turnover growth and solid profitability for Cegal in 2023

Editorial staff Cegal want to build a stellar nextgen tech company that enables a more sustainable future, and shape the digital future by turning complex IT into digital success stories.

03/12/2024 |

Strong growth throughout last year resulted in another year of double-digit growth for Cegal. The turnover ended at NOK 1.9 billion, an increase of 15% from 2022.

CEO Dagfinn Ringaas sums up last year: “The goal has been to build a stellar next-gen tech company for the energy sector. The figures for last year show that we are making progress in the areas we have invested in cloud operations, associated consulting services, and our own software.”

Cegal ended 2023 with a turnover of NOK 1.9 billion (NOK 1.6 billion in 2022) and delivered an impressive 15% revenue growth, underpinned by robust performances across all business units.

Our pro forma adjusted EBITDA margin reached 18%, demonstrating robust and profitable growth showcasing our operations' resilience and efficiency. EBITDA ended at NOK 342 million compared to NOK 310 million in 2022. At the end of 2023, Cegal had a record order backlog of NOK 2.43 billion, up from NOK 2.42 billion at the end of 2022.

Worldwide, we experience strong demand for our technology and services for the energy sector.

Dagfinn Ringås, Cegal

CEO Dagfinn Ringaas at Cegal summarizes: “Cegal's products and services meet several of the trends in the energy sector. The strongest is pervasive digitization, and that more companies are now working with more energy sources. Keywords for digitalization are cloud services, a stronger focus on cyber security, data collection with analysis, reporting, and visualization, as well as the use of artificial intelligence (AI). These are areas where Cegal stands strong.”

Strong financial results and happy employees

Among others, we find Sval, OKEA, Petronas, Skagerak Energi, and Elhub on the customer list.

Read our success story: OKEA achieves profitability and growth by outsourcing IT to Cegal >

Read our success story: Cegal, PETRONAS, and Microsoft Collaborate on AI and High-Performance Computing on Azure >

Read our success story: Cegal enters long-term agreement with Sval Energi >

Ringaas continues: “Some of these are new customers. With others, we sell more because of the size we have obtained. We are also happy to deliver strong financial results while at the same time having a higher employee engagement and a lower number of people who quit than the industry in general.”

Turnover

Turnover increased by 15% with EBITDA margin of 18%.

Order backlog

Order backlog: NOK 2.43 billion

Globally

A third of the turnover is now outside Norway.Has passed 1,000 customers globally.

Hires

152 new employees and brought in two renowned executive directors: Camilla Magelssen from Cognizant and Jon Henrik Andersen from Microsoft.

Partners

Strengthened the position as the Nordic leader partner with Microsoft and Oracle through the number of certifications and documented expertise.

Carbon capture

Entered into a partnership with the Norwegian Geotechnical Institute (NGI) to develop technology for carbon capture and storage (CCS).

Priorities global expansion

Looking into 2024, Dagfinn Ringaas is optimistic about the company's opportunities: “Our operational priorities will be to continue our global expansion in energy through scalable cloud operations offerings, pursue larger global customers in close partnerships with Nasuni, Microsoft, and Oracle, cross-sell and upsell our software, data management, and IT governance services.”

Read about our partnership with Nasuni >

Ringaas continues: “We are also experiencing strong demand for our modern, cloud-based software for the energy sector. We are continuously developing this further, among other things, to exploit the opportunities offered by artificial intelligence (AI). The goal is to help our customers grow and reduce their costs and emissions while having fun at work and developing a fantastic work culture.”

Cegal has structured its business in three areas:

Cloud services
Consulting services
Industrial software

All areas saw growth in 2023. Cloud grew 10% year-on-year, consulting 7%, and software 20%.

Ringaas concludes: “Our vision is to build a global tech powerhouse for the energy sector that will contribute to the green shift. Record-breaking order backlog combined with solid growth and profitability means we are optimistic and ready to turn complex IT into real business value with both old and new customers.”

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