Veidekke: Settlement reached in the dispute over the E39 Svegatjørn–Rådal project in Bergen

Veidekke and the Norwegian Public Roads Administration have agreed on the final settlement of the E39 project between Os and Rådal outside Bergen. For Veidekke, the settlement will result in a NOK 110 million loss and positive cash flow in the amount of NOK 300 million. The loss will be recorded in Q1 2023.

Veidekke and the Norwegian Public Roads Administration entered into an agreement on construction of the project E39 Svegatjørn–Rådal in the summer of 2015. Work on the project was finished in 2020 and the road opened to traffic in autumn 2022. The parties have disputed several elements of the project and the final settlement.

The main legal hearing regarding the disputed final settlement was scheduled for September 2023. With the negotiated settlement, the case is now closed.

The settlement involves a loss of NOK 110 million for Veidekke. The amount will be recorded in the Q1 2023 profit and loss accounts for Veidekke’s Infrastructure Norway operation. As a result of payments withheld for work performed and previously paid-in VAT, the outcome of the dispute also entails capital influx payments of NOK 300 million, which will be recorded in Q2 and Q3 2023.

This information is subject to a disclosure duty pursuant to section 5-12 of the Securities Trading Act.

For more information, contact:
Jørgen Wiese Porsmyr, CFO Veidekke group, +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 39 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.