PROPERTY DIVISION DOUBLES ITS PROFIT
Project portfolio
Veidekke's Property Division has a substantial project portfolio totalling 4,400 dwellings in Norway, 2,400 of which are in the Oslo area. In the first quarter, building was started on 49 dwellings, giving a total of 615 residential units under construction. The number of unsold dwellings is 219, of which Veidekke's share is 173.
"We still regard developments in the housing market as favourable, but we are attaching importance to limiting exposure to risk both in each individual project and in project development as a whole', says Mr. Venold. The Property Division also has about 600 dwellings under development in Stockholm, and more than 260,000 square metres of business premises under development in Norway.
"We see a more reserved attitude in the non-residential market, and we are therefore cautious about initiating new projects unless we have signed satisfactory sales contracts or leases,' he says.
Group developments
The Veidekke Group has a turnover for the first quarter of NOK 2,283 million (NOK 1,436 million). The relatively large increase is due first and foremost to acquisitions in 2000, but there has also been some organic growth. Earnings before financial costs, tax and depreciation (EBITDA) were NOK 103.1 million (NOK 95.1 million), giving cash flow per share of NOK 2.90 (NOK 3.43). The pre-tax result was
NOK -7.7 million (NOK 11.8 million). This corresponds to earnings per share of NOK -0.13 (NOK 0.42).
"Our weak pre-tax figure is due to seasonal fluctuations aggravated by higher financial and goodwill costs, establishment costs in Sweden, lower earnings in the Regional Construction Division and a continuing difficult heavy construction market in Norway,' says Mr. Venold.
Order books strengthened
The state of the Group's order books as a whole is very satisfactory. At the end of the quarter, orders-on-hand stood at NOK 6,137 million, compared with NOK 5,833 million at the end of last year and
NOK 3,406 at the end of the first quarter 2000.
Reference is also made to the Board of Directors' report for the first quarter 2001, which is enclosed with this press release: