Extraordinary Effects on Veidekke's 3rd Quarter ProfitsVeidekke reports two issues that will have consequences on the group's third quarter results. Two of these have been brought forward earlier. One is related to the gain of NOK 30 million from the sale of Bautas; the other is a write-down of NOK 25 million on Veidekke's share of the Bujagali hydro-power project in Uganda. In addition to this, Veidekke will make an allocation of NOK 10 million for costs in connection with the reorganisation of the Special Projects Division.
"There have been elements of uncertainty attached to the project in Uganda for a long period of time. We now therefore consider it appropriate to make a write-down on Veidekke's share of the outstanding claims in connection with preparatory work done under contract with the American energy company, AES," says Senior Vice President and CFO Arne Giske, Veidekke.
"When we presented the results for the second quarter, we also warned about this exposure. Included in the sum of NOK 25 million, however, is also an allocation to cover costs in connection with efforts to secure Veidekke's interests, and to bring the project to a zero point," he adds.
Furthermore, Veidekke has decided not to undertake any new large-scale projects outside Scandinavia. The Special Projects Division will discontinue as a separate division, and its remaining activities will be included in Construction Norway Division. In this connection, NOK 10 million have been allocated to cover restructuring and workforce reduction costs. This will also cover costs related to making an improved client and project driven organisation that concentrates on the Scandinavian market.
Publication of the results for the third quarter will, as planned, take place on Thursday, 31 October 2002.
For further information, please contact
Arne Giske, Senior Vice President and CFO,
phone (+47) 21 05 77 80 or 905 89 526
Jørgen G. Michelet, Director, Finance and Investor Relations,phone (+47) 21 05 77 22 or 917 43 856