LNS Achieves Milestone with First-Ever NOK Three Billion Turnover
The core activities of Leonhard Nilsen and Sønner include road and tunnel construction and mass removal. The company is also involved in mining as an operating contractor for several mining companies in Norway. (Photo: LNS).
The Northern Norwegian contractor company Leonhard Nilsen & Sønner (LNS) reached the NOK three billion mark in turnover for the first time in 2023. However, the company has made up the losses for the LNS-owned ruby mine in Greenland, which somewhat lowers the results.
The contractor group Leonhard Nilsen og Sønner (LNS) had a turnover of NOK 3,1 billion in 2023. This is an increase from 2,7 billion the year before and a new record for the company.
"Reaching this milestone is a lot of fun, even though it hasn't been a target in itself to reach NOK 3 billion," says CEO Frode Nilsen to High North News.
LNS is Northern Norway's largest contractor and has built several of the country's longest tunnels. It is also the operation contractor for mining companies, including Rana Gruber, just north of Mo i Rana, Northern Norway. At the end of 2023, the LNS group consisted of 16 companies.
Ruby mine affects results
Through its holding company, LNS Mining AS, LNS is also the majority owner of Greenland Ruby, which engaged in ruby extraction in Greenland until the end of 2022. Recently, it was revealed that the board of Greenland Ruby has applied for a reconstruction of the company in an attempt to avoid bankruptcy. According to a press release, Greenland Ruby has not succeeded in obtaining sufficient income to manage its debt.
Despite the NOK three billion turnover, the ruby mine in Greenland's economic situation is largely affecting last year's results.
"We have managed all the losses in Greenland. If not for that, we would have a good result. But we have settled everything and are left with a solid equity capital. Now, we go full speed ahead," elaborates Nilsen.
The group ended up with a minor deficit in 2023 and the annual profit was NOK 29 million in the red.
The contractor delivers
What was particularly good about last year?
"We have had positive contributions to several of our projects. LNS Spitsbergen delivered well last year, but first and foremost, our contractor company has made the largest contributions."
Furthermore, Nilsen highlights the success of road projects. The Northern Norwegian contractor has a.o. been operating two road projects over the past years: the building of the new E6 highway past Trofors in Helgeland and the new E6 over the Kvænang mountain in Northern Troms.
CEO of the LNS group, Frode Nilsen. LNS' headquarters are located in Risøyhamn in Andøya municipality in Northern Norway. (Photo: Arne O. Holm)
"Regarding the Kvænang mountain, we opened the tunnel here nine months ahead of schedule, which we were very pleased with."
The entire project was officially opened Wednesday last week, but there has been traffic there before the summer, Nilsen says.
"We are also well underway in Trofors. There have been some challenges, but we have solved them well and are on schedule."
Improved delivery
In an earlier interview from 2022, the CEO highlighted that the company was affected by both delivery issues due to the war in Ukraine and higher prices on input factors.
"What one could have delivered almost overnight can now take several months. This particularly applies to machines and various equipment that is hard to get," said Nilsen.
What does the situation look like now?
"Deliveries have normalized, we think. There have also been some price increases in the past years, but it is not increasing as much as it did," he concludes.
