Veidekke ASA: Q3 2019 results
Veidekke generated revenues of NOK 9.4 billion in the third quarter, boosting pre-tax profits to NOK 494 million, up NOK 34 million on last year. Veidekke’s construction operations received NOK 5.4 billion in new orders during the quarter, bringing the order book to NOK 33.4 billion as at 30 September.
“Overall, this was a steady quarter for Veidekke. We are particularly pleased by the substantial progress made by the industrial operation, which – together with the Norwegian property development operation – delivered an excellent profit performance. We are also satisfied with the Norwegian civil engineering operation, which is progressing according to plan. However, a challenging residential market in Stockholm weakened the performances of the Swedish property development and building construction operations, while the profits of the Swedish civil engineering operation were negatively impacted by a limited number of projects with very weak profitability,” says Veidekke Group CEO Jimmy Bengtsson.
“The third-quarter LTI (lost time injury) rate was on a par with the previous quarter, but to reduce the injury rate further Veidekke is implementing new measures to promote standardisation, improve risk management and ensure knowledge transfer throughout the group,” says Jimmy Bengtsson.
Veidekke achieved NOK 9.4 billion in revenue in the third quarter. All three business areas contributed to the 7% revenue increase compared to Q3 2018, with the greatest contribution coming from the construction operations.
The third-quarter pre-tax profit totalled NOK 494 million. The profits of the construction operations fell somewhat year-on-year. While the Norwegian and Danish operations performed on a par with Q3 2018, profits dropped in the Swedish operation. In the property development operation, development gains and strong residential sales in Norway led to profit growth. The industrial operation boosted its profits substantially, driven primarily by the improved profitability of the asphalt operation.
The order intake of the construction operations totalled NOK 5.4 billion in the third quarter. By quarter-end, the construction operation order book stood at NOK 33.4 billion, approximately two-thirds of which is due to be converted over the next 12 months.
Net interest-bearing debt amounted to NOK 4.9 billion as at 30 September, compared to NOK 1.5 billion at the beginning of the year. The increase is primarily attributable to payments under previously concluded land purchase contracts, increased working capital requirements in the constructions operations and normal seasonal fluctuations in the industrial operation.
The LTI rate for the group as a whole was 4.1 in the third quarter, compared to 4.0 in the second quarter and 5.2 in Q3 2018. The sick leave rate stood at 3.4% in the third quarter, on a par with Q3 2018 and slightly down from 3.8% in the second quarter.
For more information, please contact:
• 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 https://veidekke.fotoware.cloud/fotoweb/archives/5028-Pressebilder-Veidekke/
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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 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.