Selvaag Bolig ASA: Q2 2017: Good results and dividend

Selvaag Bolig showed an EBITDA (IFRS) of NOK 307.1 million for the first half, up by NOK 110.8 million from the same period of 2016. Its board of directors has decided to pay a dividend of NOK 1.20 per share for the first half.


"Our profit has prompted the board to declare a dividend which ranks as the highest in our history. That reflects both good results and a positive outlook," says CEO Baard Schumann.

Selvaag Bolig had 1 586 homes net under construction at 30 June, with a combined sales value of more than NOK 7 billion. Of these, 78 per cent were already sold.

"The value of the homes we're building is record-high," says Schumann. "These units are due to be delivered over the next three years, which means that we'll be producing good results in the future and that risk is low."

A total of 425 homes were sold by Selvaag Bolig in the first half year, with a sales value of NOK 1 994 million. That corresponds to an average unit price of NOK 4.7 million.

"We believe the market will be stable and good in the time to come. The Oslo market is calmer than in earlier periods, but sales and progress are good for all our projects. The market in the Stavanger area has also improved sharply, and we're now selling well there. We occupy a strong position in this region," says Schumann. "

First half 2017 (2016 figures in brackets)

• Dividend of NOK 1.20 (NOK 0.65) per share for the first year
• IFRS:** Operating revenues of NOK 1 591 million (NOK 1 728 million), EBITDA adjusted for financial expenses of NOK 338 million (NOK 252 million), corresponding to a margin of 21.3 per cent (14.6 per cent)
• Earnings per share: NOK 2.39 (NOK 1.35)
• NGAAP:*** Operating revenues of NOK 1 784 million (NOK 1 623 million), EBITDA of NOK 473 million (NOK 267 million), corresponding to a margin of 26.5 per cent (16.4 per cent)
• Gross sales* of 425 homes (702) with a sales value of NOK 1 994 million (NOK 2 728 million), corresponding to an average sales price of NOK 4.7 million (NOK 3.9 million)
• Net sales of 355 homes (606) with a sales value of NOK 1 617 million (NOK 2 423 million), corresponding to an average sales price of NOK 4.6 million (NOK 4 million)
• Construction started for 504 homes net (483), while 307 net were delivered to the buyer (486)

Second quarter 2017 (2016 figures in brackets)

• Highest-ever value of homes under construction
• 1 586 homes net under construction (1 344) with a combined sales value of NOK 7 074 million (NOK 5 075)
• 78 per cent of homes under construction (83 per cent) sold at 30 June
• 99 per cent of homes due for completion in 2017 sold, and 87 per cent of those for completion in 2018
• IFRS:** Operating revenues of NOK 1 135 million (NOK 1 104 million), EBITDA adjusted for financial expenses of NOK 245 million (NOK 161 million), corresponding to a margin of 21.6 per cent (14.6 per cent)
• Earnings per share: NOK 1.58 (NOK 0.90)
• NGAAP:*** Operating revenues of NOK 967 million (NOK 808 million), EBITDA of NOK 271 million (NOK 135 million), corresponding to a margin of 28 per cent (16.8 per cent)
• Gross sales* of 187 homes (408) with a sales value of NOK 710 million (NOK 1 642 million)
• NOK 500 million bond loan redeemed one year before the due date
• Three sites purchased in Oslo, Ås and Lørenskog which will provide about 690 homes net (Selvaag Bolig's share)
• Net sales of 165 homes (326) with a sales value of NOK 633 million (NOK 1 370 million)
• Construction started for 318 homes net (253), while 222 net were delivered to the buyer (307)

* 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 presentation will be held in Norwegian at 08:30 CET. A transcript in English will be made available at www.selvaagboligasa.no by 15:00 CET (09:00 EDT).  

Further information from
Baard Schumann, CEO, Selvaag Bolig ASA
Telephone: +47 940 80 000, e-mail: bs@selvaagbolig.no

Sverre Molvik, CFO, Selvaag Bolig ASA
Telephone: +47 401 00 585, e-mail: smo@selvaagbolig.no