Veidekke ASA: Q2 2019 results

Veidekke generated revenues of NOK 10.1 billion in the second quarter of 2019, achieving a pre-tax profit of NOK 451 million. Veidekke’s construction operations received NOK 8.7 billion in new orders during the quarter, bringing the order book to NOK 35.3 billion as at 30 June.

“Veidekke had a positive development in the second quarter. There is good momentum in the construction operations in all three countries, and I am pleased to see our improvement efforts in the industrial operation bearing fruit. The property development operation performed particularly well in Norway, and there are also signs of improvement in residential sales in and around Stockholm,” says Group CEO Arne Giske.

“We are now starting to see some results of the improvement measures we have implemented over the past year, and we will maintain our efforts to improve the group’s profitability,” says Giske.

“Veidekke has ambitious injury-reduction targets. We emphasise risk prevention and making all employees aware of the importance of working as safely as possible. In the past quarter, we noted a substantial reduction in the number of recorded injuries,” says Group CEO Arne Giske.

Veidekke generated revenue of NOK 10.1 billion in Q2 2019, representing an increase of 10% on the corresponding quarter of last year. The construction operations accounted for most of this growth.

The quarterly pre-tax profit was NOK 451 million. The industrial operation has made satisfactory progress over the past 12 months, primarily on the back of increased volumes and profitability in the asphalt business. In the property development operation, good residential sales in Oslo and gains on sales of residential projects boosted results. Considerably improved results in the Norwegian civil engineering business contributed to the construction operation’s profit increase.

The construction operation booked new orders in the second quarter to the amount of NOK 8.7 billion. As at quarter-end, the construction order book stood at NOK 35.3 billion, of which 66% will be converted into revenue over the next 12 months.

Net interest-bearing debt amounted to NOK 4.3 billion as at 30 June, compared to NOK 1.5 billion at the beginning of the year. The increase in interest-bearing debt is primarily attributable to payments under previously signed contracts for land purchases in both Norway and Sweden, as well as normal seasonal fluctuations in the first half of the year. Dividends totalling NOK 669 million were distributed in May.

Revenues in the first half of 2019 totalled NOK 18.6 billion, representing growth of 14% over the first six months of 2018. The increase is primarily attributable to the Norwegian and Swedish building construction operations. The group achieved profits of NOK 431 million in the first half of the year.

The group’s second-quarter LTI (lost time injury) rate – which specifies the number of injuries per one million working hours – was 4.0 in Q2 2019, compared to 5.0 in the preceding quarter and 5.3 in Q2 2018. The sick leave rate was 3.8%, compared to 4.6% in the first quarter and 3.4% in the second quarter of last year.

For more information, please contact: 

• Group CEO Arne Giske, tel. +47 905 89 526, arne.giske@veidekke.no
• Finance Director Jørgen G. Michelet, tel. +47 917 43 856, jorgen.michelet@veidekke.no
• EVP Communications and Public Affairs Lars Erik Lund, tel. +47 413 31 369, lars.lund@veidekke.no

For press images, see www.flickr.com/photos/veidekke 

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

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 approximately NOK 36 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.