Veidekke ASA: Nine-figure profit for Veidekke in 2015

Veidekke continued its strong performance in the fourth quarter too, and for the full year the Group had revenue of NOK 24.5 billion and a profit of just over NOK 1 billion. "2015 was an excellent year for Veidekke, with good profit growth. We have strengthened our positions through acquisitions, we have seen a sharp increase in the order backlog, residential sales are healthy, and we have a solid financial position. This means we are entering 2016 at a running pace," says Arne Giske.

Veidekke's revenue in the fourth quarter of 2015 amounted to NOK 7.3 billion (NOK 6.6 billion in Q4 2014), and profit before tax was NOK 376 (368) million. This corresponds to a profit margin of 5.1% (5.6%). For 2015 as a whole, revenue amounted to NOK 24.5 (23.9) billion. Profit before tax was NOK 1,043 (967) million, with a profit margin of 4.3% (4.1%). The combined order backlog at year-end totalled NOK 24.8 (16.8) billion. The figures are from the segment accounts. Earnings per share (IFRS) was NOK 5.7 (6.3) for the year. Veidekke's Board proposes that the dividend be increased to NOK 4.00 per share for 2015 from NOK 3.50 in 2014.

"Construction has seen consistently high activity in the fourth quarter. Growth and volume increases have marked building construction operations, while we are seeing good improvements in profitability in civil engineering operations," says Giske.
Revenue in Veidekke's construction operations in 2015 amounted to NOK 19.8 (18.5) billion, and the profit was NOK 644 (549) million. The order backlog grew by 50% and was NOK 23.7 (15.8) billion at the end of the quarter.

"Residential sales have been high in both Norway and Sweden, especially in the areas around the capitals. With a high sales ratio, particularly in Sweden, we are therefore concentrating on getting new projects out on to the market," continues Giske.
Property Development had revenue of NOK 2.1 (2.3) billion for 2015 and a profit before tax of NOK 306 (280) million. Veidekke sold a total of 1,804 residential units in the quarter for a value of NOK 6.5 billion. Veidekke's share amounted to 1,416 (770) units. At the end of the quarter, there were a total of 2,381 units under construction, of which Veidekke's share was 1,739, and the sales ratio was an impressive 90% (82%).

Industrial had a good quarter too. High activity and efficient operation in both Asphalt and Aggregates have yielded solid results. Veidekke's industrial operations reported revenue of NOK 4.0 (4.1) billion for full year 2015 and a profit before tax of NOK 190 (210) million. However, the profit was impacted by weak profitability in Road Maintenance.

"Veidekke has worked systematically to improve safety in our projects. It is particularly pleasing to see the number of injuries cut by 22% over the last year," says Giske.
The lost-time injury (LTI) rate, indicating the number of injuries resulting in absence from work per million hours worked, was 4.5 (4.7), while sickness absence remains stable and low at 3.9% (4.0%). The figures are for the last 12 months as at the fourth quarter.

Please refer to the Board of Director's report for the fourth quarter of 2015 for additional information.

For press photos, see www.flickr.com/photos/veidekke, for more information, contact:
President & CEO Arne Giske, tel. +47 21 05 50 00 / 90 58 95 26, arne.giske@veidekke.no
CFO Terje Larsen, tel. +47 90 68 78 51, terje.larsen@veidekke.no
SVP Communications Grete Nykkelmo, tel. +47 91 31 10 00, grete.nykkelmo@veidekke.no


Veidekke is one of Scandinavia's largest construction and property development companies. The company undertakes all types of building construction and civil engineering contracts, maintains roads, and produces asphalt and aggregates. The company is characterised by involvement and local knowledge. Revenue is NOK 24.5 billion (2015), and half of the 7,000 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.