Selvaag Bolig ASA: dividend and high margins

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Selvaag Bolig had an EBITDA (IFRS) adjusted for financial expenses of NOK 316 million for the second quarter of 2019. This was up by NOK 138 million from the same period of last year and gave a margin of 30.5 per cent. The board has resolved to pay a dividend of NOK 2.00 for the first half.

“The decision on the dividend has been taken on the basis of good results and a positive outlook,” explains CEO Rolf Thorsen.

At 30 June, Selvaag Bolig had 1 538 homes under construction with a combined value of more than NOK 7 billion. Seventy-one per cent of these units were already sold at that date.

“These are homes due for delivery over the next three years,” says Thorsen.

“We also believe that the market will be stable and positive in coming years. Demand is good in all our projects.”

Highlights of the second quarter 2019 (second quarter 2018)

  • Gross sales* amounted to 276 homes (203) with a sales value of NOK 1 393 million (NOK 862 million)
  • Net sales were 210 homes (181) with a sales value of NOK 1 106 million (NOK 751 million)
  • Net construction starts for 311 homes (234), net completions of 307 (242) and net deliveries of 246 to buyers (243)
  • Net construction under way on 1 538 homes (1 503) with a combined sales value of NOK 7 039 million (NOK 7 076 million)
  • 71 per cent (72 per cent) of homes under construction sold at 30 June
  • 48 (18) completed homes unsold at 30 June
  • IFRS**: Operating revenues of NOK 1 035 million (NOK 864 million), EBITDA adjusted for financial expenses NOK 316 million (NOK 178 million), corresponding to a margin of 30.5 per cent (20.6 per cent)
  • Earnings per share: NOK 2.24 (NOK 1.26)
  • NGAAP***: Operating revenues of NOK 868 million (NOK 665 million), EBITDA of NOK 211 million (NOK 145 million), corresponding to a margin of 24.4 per cent (21.8 per cent)

Highlights of the first half 2019 (first half 2018)

  •  Dividend of NOK 2.00 (NOK 2.00) per share for first half
  •  IFRS**: Operating revenues of NOK 1 144 million (NOK 1 244 million), EBITDA adjusted for financial expenses NOK 307 million (NOK 229 million), corresponding to a margin of 26.8 per cent (18.4 per cent)
  •  Earnings per share: NOK 2.08 (NOK 1.60)
  •  NGAAP***: Operating revenues of NOK 1 548 million (NOK 1 236 million), EBITDA of NOK 366 million (NOK 262 million), corresponding to a margin of 23.6 per cent (21.2 per cent)
  •  Gross sales amounted to 546 homes (419) with a sales value of NOK 2 712 million (NOK 1 651 million)
  •  Net sales were 453 homes (366) with a sales value of NOK 2 289 million (NOK 1 444 million)
  •  Net construction starts for 408 homes (336), net completions of 319 (296) and net deliveries of 275 to buyers (302)

* Net sales include Selvaag Bolig’s share of joint venture projects. Gross sales include all homes in joint venture projects.

** Pursuant to the IFRS, all profit is recognised when the homes are delivered to the buyer. Profit pursuant to the IFRS accordingly derives primarily from homes which began to be built roughly two years ago.

*** The accounts pursuant to Norwegian generally accepted accounting principles (NGAAP) utilise the percentage of completion method. This means that profits are recognised on the basis of construction progress and sales in the projects. That presents ongoing value creation in the company.

The results will be presented at 08:30 am CET. An English transcript of the presentation will be made available on the company’s website by 15 August.

Further information from

Rolf Thorsen, CEO, Selvaag Bolig ASA
+47 901 19 373, e-mail:

Sverre Molvik, CFO, Selvaag Bolig ASA
Telephone: +47 401 00 585, e-mail:

Kristoffer Gregersen, vice president communication and marketing, Selvaag Bolig ASA
Telephone: +47 957 75 593, e-mail:

Selvaag Bolig ASA is a residential property developer which controls the entire value chain from acquisition of land to sale of turnkey homes. The company has several thousand homes under development at any given time, and focuses on the growth areas in and around Greater Oslo, Bergen, Stavanger and Trondheim. Selvaag Bolig represents a continuation of Selvaag's 70-year history and experience, and offers a broad variety of property types. The company’s head office is at Ullern in Oslo.

This information is subject to the disclosure requirements specified in section 5-12 of the Norwegian Securities Trading Act.