Veidekke ASA: Strong revenue growth and good earnings

Veidekke ASA: Strong revenue growth and good earnings

09.02.2017 - 07:00

Veidekke ended the year with strong revenue growth and good earnings in the fourth quarter. Revenue in 2016 totalled NOK 30.1 billion, an increase of 23% compared with 2015. Profit before tax for the year increased to NOK 1.46 billion from NOK 1,04 billion in 2015. Earnings per share was NOK 9.3 (6.5) in accordance with the segment accounts.

"2016 was a good year for Veidekke. We rounded a new milestone with total revenue exceeding NOK 30 billion, and significantly increased our earnings. A good order intake in the construction operations and record-high residential production made this possible", says CEO and President Arne Giske.

Veidekke's revenue totalled NOK 8.7 (7.3) billion, while profit before tax was NOK 429 (376) million. Earnings per share was NOK 3.1 (2.6) in accordance with the segment accounts.

The Group had an order intake of NOK 6.2 billion in the fourth quarter, resulting in a total order backlog of NOK 24.4 billion at the end of the quarter.

Revenue in Veidekke's construction operations totalled NOK 6.9 (6.1) billion in the fourth quarter, an increase of 13% compared with the corresponding quarter last year. Profit before tax amounted to NOK 185 (219) million.

The construction operations in Sweden and Denmark showed profit growth for the quarter, while the profit from the Norwegian construction operations was weaker than the previous year due to the write-down of four civil engineering contracts.

"There is a high level of activity in the construction operations in all three countries, but we see regional differences and feel strong competition for the major transport infrastructure contracts," says Giske.

Revenue from the property development operations increased to NOK 1.3 billion from NOK 575 million in the fourth quarter of 2015. Profit before tax amounted to NOK 226 (117) million. A total of 417 (461) residential units were sold in the quarter, including jointly owned projects. At the end of the year, Veidekke had 2,422 (1,739) residential units under construction. The overall sales ratio for projects under construction was 91% (90%).

"Residential sales are high in our main markets and the level of activity has been historically high this year. Our projects have been well received, and in 2016 we sold residential units for NOK 8.6 billion," Giske continues.

Revenue from Veidekke's industrial operations was NOK 1.1 (1.1) billion in the fourth quarter. Profit before tax amounted to NOK 34 (63) million.

Veidekke's overall lost-time injury (LTI) rate (number of injuries per million hours worked) was 4.5 in the fourth quarter, which is on par with the level in the fourth quarter of 2015. Sickness absence remained stable and low at 3.7% (3.9%).

For press photos, see www.flickr.com/photos/veidekke , for more information, contact:
President and CEO Arne Giske, tel. +47 905 89 526, arne.giske@veidekke.no
Financial Director Jørgen G. Michelet, tel. +47 917 43 856, jorgen.michelet@veidekke.no
Communications Manager Helge Dieset, tel. +47 905 53 322, helge.dieset@veidekke.no

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Veidekke is one of Scandinavia's largest construction and property development companies. The company undertakes all types of building and construction contracts, maintains roads and produces asphalt and aggregates. The company's operations are characterised by involvement and local knowledge. Revenue is NOK 30 billion (2016), and half of the 7,400 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.

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