Veidekke ASA: Results Q4 2021 and the year 2021

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Veidekke achieved revenues of NOK 10.2 billion in Q4, and a pre-tax profit of NOK 393 million. The group’s order book totalled NOK 38.1 billion at year-end. The profit per share for 2021 was NOK 7.1, and the board is proposing a dividend of NOK 7.0 per share for the financial year 2021.

“Veidekke stayed on course in 2021, as confirmed by the fourth-quarter performance. We improved our profitability throughout the year and delivered a better result than in 2020 despite somewhat lower revenues. Infrastructure Norway achieved the greatest improvements both in Q4 and in 2021 as a whole. Construction Norway also improved profitability year-on-year, while the Danish operation continued to deliver strong margins,” says Group CEO Jimmy Bengtsson.

“With profitability at 3.6% in 2021, up from 3.0% in 2020, Veidekke is well on the way to achieving its profit-margin targets of 4% in 2022 and 5% in 2025. The board has underlined this with its proposal to distribute the entire annual profit,” says Bengtsson.

“2021 was a milestone year for Veidekke. Following many years of systematic investment in injury-reduction in the form of procedures, equipment and attitudes, we recorded a year without serious injuries. I am particularly pleased that we reached this milestone in a year when corona restrictions demanded significant attention and great flexibility on our construction sites. Injury-prevention remains an ongoing and high priority for us, and we therefore regard the achievement of zero serious injuries in 2021 not as the finishing line but rather as a lap time in line with the schedule we adopted a few years ago,” says Jimmy Bengtsson.

Veidekke achieved revenues of NOK 10.2 billion in Q4 2021, compared to NOK 10.3 billion in the fourth quarter of 2020. The fourth-quarter pre-tax profit totalled NOK 393 million, compared to NOK 391 million in Q4 2020. The infrastructure operations delivered improved results and profitability. The performances of the other operations were somewhat weaker year-on-year, with the decline primarily being attributable to reduced revenues. Overall, the profit margin was 3.9%, on a par with Q4 2020. All operational areas improved their profitability compared to last year, with the exception of Construction Sweden, which experienced a weak quarter.

The group achieved total revenues of NOK 37.6 billion in 2021, compared to NOK 38.1 billion in 2020. Measured in local currency, revenues were nevertheless on a par with 2020. Construction Sweden and Infrastructure Norway improved their revenues, while revenues dropped for Construction Norway, Infrastructure Sweden and the Danish operation. The group’s total pre-tax profit in 2021 amounted to NOK 1 342 million, up from NOK 1 134 million in 2020. The improvement is attributable to Infrastructure Norway. The 2021 profit margin was 3.6%, up from 3.0% in 2020. With the exception of Construction Sweden, all operational areas improved their profitability.

Net interest-bearing assets totalled NOK 3.7 billion at the end of Q4 2021, compared to NOK 3.1 billion at the beginning of the year. Cash flow from operational activities amounted to NOK 856 million in Q4, and NOK 2.2 billion in 2021 as a whole. The statement of financial position totalled NOK 17.3 billion at quarter-end, compared to NOK 17.5 billion one year ago.

The group’s Q4 order intake was NOK 7.9 billion, compared to NOK 9.8 billion in Q4 2020. At quarter-end, the order book amounted to NOK 38.1 billion, up from NOK 37.5 billion in 2020. The order book strengthened in the Other civil engineering and Maintenance contracts segments, but weakened in other segments. Around two-thirds of the order book will be converted into revenue in the next 12 months.

The fourth-quarter LTI (lost time injury) rate was 5.4, compared to 5.7 in the preceding quarter and 4.4 in Q4 2020. There were no serious injuries in 2021. The sick leave rate was 4.6%, compared to 4.2% in the preceding quarter and 5.5% in the fourth quarter of last year.

For more information, contact:
Jimmy Bengtsson, CEO, +47 984 70 000 

Lars Erik Lund, EVP, +47 413 31 369 
Jørgen Wiese Porsmyr, CFO,+47 907 59 058

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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 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 8,000 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.