Selvaag Bolig ASA: Q3 2018: Good outlook for results
Selvaag Bolig had operating revenues of NOK 1.7 billion in the first nine months of 2018 and forecasts a record number of homes delivered in the fourth quarter.
"We've had a good year so far, and results for the third quarter are a significant improvement on the same period of last year. We're now on a par with 2017 for both sales and results," says acting CEO Olav H Selvaag. "
"Viewed in isolation, the third quarter had relatively few deliveries, but we have guided that a record number of homes are set to be completed in the fourth quarter. This means that value creation for the year as a whole will be very good."
At 30 September, Selvaag Bolig had a net total of 1 488 homes under construction with a combined sales value of NOK 6.9 billion. Seventy-four per cent of the units are already sold.
"These homes will be delivered over the next three years," says Selvaag. "We also believe in a good and stable market in the time to come, which will provide the basis for continued growth and good results in both the short term and the longer perspective."
Third quarter of 2018 (2017)
- 1 488 homes net under construction (1 582) with a combined sales value of NOK 6 908 million (NOK 7 047 million)
- 74 per cent of homes under construction (78 per cent) sold at 30 September
- 96 per cent of the homes due for completion in 2018 sold
- IFRS: Operating revenues of NOK 473 million (NOK 379 million), EBITDA adjusted for financial expenses of NOK 85 million (NOK 45 million), corresponding to a margin of 17.9 per cent (11.8 per cent)
- Earnings per share: NOK 0.61 (NOK 0.18)
- NGAAP**: Operating revenues of NOK 706 million (NOK 498 million), EBITDA of NOK 155 million (NOK 103 million), corresponding to a margin of 21.9 per cent (20.7 per cent)
- Gross sales* were 201 homes (207) with a sales value of NOK 861 million (NOK 843 million)
- Net sales were 182 homes (178) with a sales value of NOK 771 million (NOK 684 million)
- Net construction starts for 102 homes (77) and net deliveries of 126 units to buyers (75)
First nine months of 2018
- Gross sales amounted to 619 homes (632) with a sales value of NOK 2 509 million (NOK 2 867 million)
- Net sales were 548 homes (533) with a sales value of NOK 2 215 million (NOK 2 316 million)
- IFRS**: Operating revenues of NOK 1 717 million (NOK 1 970 million), EBITDA adjusted for financial expenses of NOK 314 million (NOK 383 million), corresponding to a margin of 18.3 per cent (19.5 per cent)
- Earnings per share: NOK 2.21 (NOK 2.57)
- NGAAP: Operating revenues of NOK 1 942 million (NOK 2 282 million), EBITDA of NOK 417 million (NOK 576 million), corresponding to a margin of 21.5 per cent (25.3 per cent)
- Net construction starts for 438 homes (582) and net deliveries of 428 units to buyers (382)
* 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.
Further information from
Olav H Selvaag, CEO, Selvaag Bolig ASA
Telephone: +47 901 67 388, e-mail: firstname.lastname@example.org
Sverre Molvik, CFO, Selvaag Bolig ASA
Telephone: +47 401 00 585, e-mail: email@example.com
Kristoffer Gregersen, vice president communications and market, Selvaag Bolig ASA
Telephone: +47 957 75 593, e-mail: firstname.lastname@example.org
Selvaag Bolig ASA is a residential property developer controlling the entire value chain from acquisition of land to sale of 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 is headquartered at Ullern in Oslo.
This information is subject to the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.