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Selvaag Bolig ASA: record result and high level of activity

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Selvaag Bolig had an EBITDA (IFRS) adjusted for financial expenses of NOK 254 million for the third quarter of 2019. This was up by NOK 169 million from the same period of last year and is the best third-quarter result in the company’s history.


Ongoing value creation in Selvaag Bolig is revealed by the operating margin, based on progress and sales in current projects.

The third quarter was characterised by good sales and production, and the operating profit (EBITDA) according to NGAAP came to NOK 172 million (2018: NOK 155 million). That corresponds to an EBITDA margin of 26.5 per cent (2018: 21.9 per cent).

The level of activity in Selvaag Bolig is high. During the quarter, the net figures for construction starts and completions of new homes came to 174 (2018: 102) and 203 (2018: 117) respectively.

At 30 September, the company had a net figure of 1 510 homes (2018: 1 488) under construction with a combined sales value of NOK 7.2 billion (2018: NOK 6.9 billion). Of these, 72 per cent (2018: 74 per cent) were sold.

“Profit for the quarter has largely been driven by a high number of deliveries and good profitability in the projects,” explains CEO Rolf Thorsen.

“We have a solid portfolio of projects in areas with exciting development trends, growth and demand for new homes. Our strong market position and high level of activity lay the basis for good value creation in coming years.”

Sales in the third quarter were good, and homes sold by Selvaag Bolig were worth over NOK 1 billion more than in same period of 2018. At 30 September, the company had just over 750 residential units on sale in 19 projects.
 

Highlights of the third quarter 2019 (third quarter 2018)
 

  • Gross sales* amounted to 192 homes (201) with a sales value of NOK 914 million (NOK 861 million)
  • Net sales were 159 homes (182) with a sales value of NOK 756 million (NOK 771 million)
  • Net construction starts for 174 homes (102), net completions of 203 (117) and net deliveries of 243 to buyers (126)
  • Net construction under way on 1 510 homes (1 488) with a combined sales value of NOK 7 192 million (NOK 6 908 million)
  • 72 per cent (74 per cent) of homes under construction sold at 30 September
  • 34 (12) completed homes unsold at 30 September
  • IFRS**: Operating revenues of NOK 810 million (NOK 473 million), EBITDA adjusted for financial expenses NOK 254 million (NOK 85 million), corresponding to a margin of 31.3 per cent (17.9 per cent)
  • Earnings per share: NOK 1.97 (NOK 0.61)
  • NGAAP***: Operating revenues of NOK 650 million (NOK 706 million), EBITDA of NOK 172 million (NOK 155 million), corresponding to a margin of 26.5 per cent (21.9 per cent)



Highlights of the first nine months of 2019 (first nine months of 2018)
 

  • IFRS**: Operating revenues of NOK 1 954 million (NOK 1 717 million), EBITDA adjusted for financial expenses NOK 561 million (NOK 314 million), corresponding to a margin of 28.7 per cent (18.3 per cent)
  • Earnings per share: NOK 4.05 (NOK 2.21)
  • NGAAP***: Operating revenues of NOK 2 198 million (NOK 1 942 million), EBITDA of NOK 538 million (NOK 417 million), corresponding to a margin of 24.5 per cent (21.5 per cent)
  • Gross sales amounted to 738 homes (619) with a sales value of NOK 3 633 million (NOK 2 509 million)
  • Net sales were 612 homes (548) with a sales value of NOK 3 045 million (NOK 2 215 million)
  • Net construction starts for 582 homes (438), net completions of 522 (413) and net deliveries of 518 to buyers (428)

* 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 14 November.
 


Further information from

Rolf Thorsen, CEO, Selvaag Bolig ASA
Telephone: +47 901 19 373, e-mail: rt@selvaagbolig.no

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

Kristoffer Gregersen, vice president communication and marketing, Selvaag Bolig ASA
Telephone: +47 957 75 593, e-mail: kgr@selvaagbolig.no


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.

www.selvaagboligasa.no

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

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