Veidekke: Q4 2023 and year 2023 results
Veidekke achieved revenues of NOK 12.1 billion in Q4, and a pre-tax profit of NOK 603 million. The group’s order book totalled NOK 40.4 billion at year-end. The profit per share for the year was NOK 7.9, and the board is proposing a dividend of NOK 7.90 per share for the financial year 2023.
“Veidekke had a good fourth quarter, increasing revenues, profits and margins for its operational activities. Construction Norway, Infrastructure Sweden and Denmark delivered particularly strong performances and contributed to the good result. We are satisfied with our performance in 2023 as a whole. Together with our robust financial position, the annual result provides a solid foundation for the board’s proposal to distribute the entire annual profit as a dividend, corresponding to NOK 7.90 per share,” says Group CEO Jimmy Bengtsson.
“We are starting 2024 with a well-balanced portfolio of projects, and are therefore well-positioned to weather challenging market conditions in certain segments. Veidekke has extensive experience of navigating shifting markets, and our robust financial position will allow us to seize any opportunities which come our way going forward,” says Bengtsson.
"And many of these opportunities will lie in the green shift. All over Scandinavia, Veidekke is building projects that showcase how, through collaboration, we develop new ideas that help reduce both greenhouse gas emissions and construction costs," explains Jimmy Bengtsson.
Veidekke achieved revenues of NOK 12.1 billion in Q4 2023, up 12% from NOK 10.8 billion in the fourth quarter of 2022. Construction Norway, Infrastructure Sweden and Infrastructure Norway all boosted revenues, while other operations reported lower earnings.
The fourth-quarter pre-tax profit totalled NOK 603 million, compared to NOK 622 million in Q4 2022, although the latter figure included a gain of NOK 130 million on the sale of a construction site by Infrastructure Sweden. Adjusted for this gain, most operations managed to increase profits. The exceptions are Infrastructure Norway, which reported a drop in profits, and Construction Sweden, whose profits were on a par with Q4 2022. The total profit margin was 5.0%, compared to 5.7% in Q4 2022.
The group’s Q4 order intake was NOK 10.2 billion, compared to NOK 7.8 billion in the fourth quarter of 2022. At quarter-end, the order book amounted to NOK 40.4 billion, down 2% on year-end 2022. Some 62% of the order book will be converted into revenue in the next 12 months.
The group achieved total revenues of NOK 43.1 billion in 2023, compared to NOK 38.7 billion in 2022. The 12% increase is attributable to Construction Norway, Infrastructure Sweden and Hoffmann. The group’s total pre-tax profit in 2023 amounted to NOK 1 444 million, compared to NOK 1 467 million in 2022. Adjusted for a settlement reached in an older dispute involving Infrastructure Norway in 2023 and a gain on the sale of a construction site by Infrastructure Sweden in 2022, the profit increased by 16% (in NOK). The 2023 profit margin was 3.3%, compared to 3.8% in 2022. Adjusted for the previously mentioned one-off effects, the margin was 3.6% in 2023, compared to 3.5% in 2022.
Net interest-bearing assets totalled NOK 2.8 billion at year-end, which is on a par with the beginning of the year. Cash flow from operational activities amounted to NOK 2.9 billion for the year, compared to NOK 1.4 billion in 2022. The statement of financial position totalled NOK 18.2 billion at year-end, up from NOK 17.6 billion one year ago.
The fourth-quarter LTI (lost time injury) rate was 6.6, compared to 1.7 in the preceding quarter and 2.9 in Q4 2022. No serious injuries were recorded in Q4. The sick leave rate was 6.0%, compared to 5.0% in the preceding quarter and 6.4% in the fourth quarter of 2022.
This information is subject to a disclosure duty pursuant to section 5-12 of the Securities Trading Act.
For more information, contact:
Jimmy Bengtsson, CEO, +47 984 70 000
Lars Erik Lund, EVP, +47 413 31 369
Jørgen Wiese Porsmyr, CFO,+47 907 59 058
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Veidekke is one of Scandinavia's largest contractors. In addition to undertaking all types of building and civil engineering assignments, the group also maintains roads and produces asphalt and aggregates. Veidekke emphasises stakeholder involvement and local experience. Its annual turnover is approximately NOK 43 billion, and half of its 8,000 employees own shares in the company. Veidekke is listed on the Oslo Stock Exchange, and has posted a profit every year since its inception in 1936.