Veidekke ASA: Cancels dividend proposal
The board of directors and group management of Veidekke ASA are taking steps to be better equipped to deal with the unresolved situation created by the COVID-19 pandemic. In consultation with Veidekke's group management, the board of directors has resolved to cancel the previously announced proposal to pay a dividend of NOK 5 per share for 2019.
So far, the outbreak of the virus has had limited impact on the progress of the company’s construction projects and property sales. However, Veidekke fears that the pandemic will create significant market uncertainty going forward. Due to the uncertainty already caused by the pandemic, the board of directors has resolved to cancel the previously announced dividend proposal and instead propose to the annual general meeting on 6 May that no dividend be paid for the 2019 financial year.
“We anticipate that the comprehensive restrictions introduced to reduce the spread of the coronavirus will produce results. However, these measures have stirred considerable uncertainty concerning Veidekke’s current operations and future market development. As a precautionary measure, the board has resolved to cancel the proposed dividend for 2019. Paying dividends has always been a priority for Veidekke and will remain so in the future: We have a clear ambition to pay a dividend at a later date, if the situation permits," says Svein Richard Brandtzæg, chair of the board of Veidekke ASA.
Veidekke has a strong balance sheet, with good liquidity and unutilised credit. The cancellation of ordinary dividend amounts to a total of NOK 675 million in increased liquidity for Veidekke. In addition to cancelling the dividend proposal for the 2019 financial year, the board is also temporarily suspending all planned investments. If circumstances permit, the board will convene an extraordinary general meeting at a later date to decide an extraordinary dividend.
For more information, contact:
Jørgen G. Michelet, Finance Director tel. +47 917 43 856, jorgen.michelet@veidekke.no
Lars Erik Lund, EVP Communications and Public Affairs, tel. +47 413 31 369, lars.lund@veidekke.no
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Veidekke is one of Scandinavia's largest construction and property development companies. The company undertakes all types of building construction and civil engineering contracts, develops residential projects, maintains roads, and produces asphalt and aggregates. The company is known for its involvement and local knowledge. Its annual turnover is NOK 39 billion, and half of its 8,600 employees own shares in the company. Veidekke is listed on the Oslo Stock Exchange and has always posted a profit since it was founded in 1936.