Veidekke ASA: Record high order backlog and good start to 2016 for Veidekke
Veidekke increased its first-quarter revenue by 17% from last year to NOK 5.9 billion. "Good markets in most of our areas and solid work by our employees have resulted in a good start to the year and a historically high order backlog," says President and CEO Arne Giske.
Veidekke had revenue of NOK 5.9 billion in the first quarter of 2016, an increase of NOK 900 million from Q1 2015. Profit before tax was NOK -15 million, an improvement of NOK 27 million from the previous year. The order intake for the quarter amounted to nearly NOK 8 billion, giving a total order backlog of NOK 27 (18) billion. This is a 50% increase in the last 12 months. Earnings per share (IFRS) was NOK -0.7 (-0.1).
"Construction operations have seen progress in both revenue and profit. Activity levels are high, especially in commercial buildings in Oslo and residential projects in Stockholm. In addition, we have been awarded a number of important projects in south-western Norway in this quarter, which is very pleasing," says Giske. Revenue from construction operations amounted to NOK 5.3 (4.4) billion, and profit before tax was NOK 107 (103) million in Q1.
"In Property Development, the high level of activity has continued into the first quarter. In Sweden in particular we now have a very good residential market, yielding strong profit growth," Giske continues. Revenue from property development operations was NOK 551 (462) million, and profit before tax rose to NOK 55 (37) million. In the quarter 451 residential units were sold (462) and 2,398 (1,499) units were under construction, including jointly owned projects. At the close of the quarter, the sales ratio for projects under construction was an impressive 93% (85%).
"The low season for Asphalt always results in weak figures for industrial operations in the first quarter, and this quarter Road Maintenance results are weake. It is therefore pleasing to be able to report that we have won half of the state asphalt contracts this year - an excellent starting point for the year's production," concludes President and CEO Arne Giske. Veidekke's industrial operations reported revenue of NOK 439 (433) million and a profit before tax of NOK -180 (-149) million.
Veidekke's overall lost-time injury rate in the first quarter (the number of injuries per million hours worked) was 4.2 (5.3), while sickness absence remains stable and low at 3.9% (4.2%). The figures are for the last 12 months as at the first quarter.
Please refer to the Board of Director's report for the first quarter of 2016 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.