Veidekke ASA: Q4 2020 results
Veidekke achieved revenues of NOK 10.3 billion in Q4 2020, and a pre-tax profit of NOK 391 million. At year-end 2020, the group’s order book amounted to NOK 37.5 billion. In 2020, Veidekke generated revenues of NOK 38.1 billion, and the pre-tax profit on continued operations was NOK 1.1 billion. Including profit effects linked to the property development operation, the pre-tax profit totalled NOK 2.0 billion. The profit per share on continued operations was NOK 5.8, and the board has proposed a dividend of NOK 5.75 per share in respect of the 2020 financial year.
“Veidekke finished the year with a strong quarterly result, improved profitability and progress in all operational areas. As a streamlined contractor, Veidekke will continue to pursue good solutions that generate customer value,” says group CEO Jimmy Bengtsson.
“Our clear priorities of improved profitability, selective growth and an attractive dividend are apparent from our Q4 performance, and will continue to guide our actions.”
“The group’s stable revenues and strong order intake give us confidence for 2021, even though the pandemic is making it difficult to predict market developments. Our focus remains on maintaining momentum and planned project progress,” says Bengtsson.
“2020 is a reminder that while we cannot always control our circumstances, we do decide our response to them. I would like to express my appreciation of all my Veidekke colleagues around Scandinavia who continue to deliver high quality and good solutions over many months of changing infection control measures and new challenges, and thereby enabling Veidekke to deliver on our promises to customers and shareholders,” says Jimmy Bengtsson.
Veidekke achieved revenues of NOK 10.3 billion in the fourth quarter, compared to NOK 10.0 billion in the same quarter last year. There was underlying profit improvement in all operational areas, and the overall pre-tax profit amounted to NOK 391 million, up from NOK -83 million in 2019. The Q4 2019 result included loss allocations and restructuring costs totalling NOK 330 million.
Revenues from continued operations totalled NOK 38.1 billion in 2020, compared to NOK 36.6 billion in 2019. Measured in local currency 2020 revenues were on a par with last year. The continued operations achieved a pre-tax profit of NOK 1.1 billion, compared to NOK 596 million in 2019. The profit margin increased to 3.0% in 2020, from 2.5% in 2019 (adjusted for last year’s loss allocations and restructuring costs).
The group’s Q4 order intake was NOK 9.8 billion, compared to NOK 9.9 billion in Q4 2019. At quarter-end, the group’s order book stood at NOK 37.5 billion, compared to NOK 36.7 billion at the beginning of the year. Approximately two-thirds of the order book will be converted into revenue in the next 12 months.
Net interest-bearing assets totalled NOK 3.1 billion at year-end. In the fourth quarter, following the sale of the property development operation, Veidekke signed new loan agreements with DNB and SEB which give the company NOK 2.5 billion in committed borrowing facilities. The terms of the agreement with SEB are linked to achievement of sustainability targets. An extraordinary dividend of NOK 22.50 per share was distributed following an extraordinary general meeting held on 3 December.
The fourth-quarter LTI (lost time injury) rate was 4.4, the same as in the preceding quarter but up from 4.1 in Q4 2019. No serious injuries were reported in the fourth quarter. The sick leave rate was 5.5%, compared to 3.9% in the preceding quarter and 4.1% in the fourth quarter of last year. The increase is due to the effects of the Covid-19 pandemic.
This information is subject to a disclosure duty pursuant to section 5-12 of the Securities Trading Act.
For more information, contact:
Jimmy Bengtsson, CEO, ph. +47 984 70 000, jimmy.bengtsson@veidekke.no
Jørgen Wiese Porsmyr, CFO, ph. +47 907 59 058, jorgen-wiese.porsmyr@veidekke.no
Lars Erik Lund, EVP, ph. +47 413 31 369, lars.lund@veidekke.no
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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 38 billion, and half of its 8,100 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.