Veidekke ASA: Q2 and H1 2021 results

Veidekke ASA: Q2 and H1 2021 results

19.08.2021 - 07:00

Veidekke achieved revenues of NOK 9.8 billion in Q2. The pre-tax profit of NOK 391 million equates to a quarterly profit per share of NOK 2.0. The order book totalled NOK 39.7 billion at quarter-end.

“Veidekke has built up strong momentum and improved its quarterly performance compared to the same period last year. Our profit margin has increased, and we have made good progress towards achieving our targets for 2022. Our strong order intake thus far in 2021 shows that Veidekke’s markets are generally functioning satisfactorily,” says Group CEO Jimmy Bengtsson.

“Going forward, we will continue to develop Veidekke as a streamlined construction contractor, giving priority to efficient operations and shorter distance between management and projects, as exemplified by the restructuring of Veidekke’s Swedish operations,” says Jimmy Bengtsson.

Veidekke’s Q2 revenues of NOK 9.8 billion are on a par with the second quarter of last year. The quarterly pre-tax profit totalled NOK 391 million, up from NOK 360 million in Q2 2020. The Q2 2020 quarterly result included positive one-off financial effects of NOK 38 million. The remainder of the profit increase is attributable to Infrastructure Norway and the Swedish operation. Overall, the profit margin increased to 4.0%, up from 3.6% in Q2 2020. All operational areas improved their profitability compared to last year, with the exception of Construction Norway, where the profit margin was on a par with 2020.

Over the first half of 2021, Veidekke generated revenues of NOK 18.1 billion, which is on a par with the corresponding period last year. Profits for the first half of 2021 amounted to NOK 419 million, up from NOK 244 in the first half of last year. The profit improvement can be chiefly attributed to Infrastructure Norway and the Swedish operations, while profits generated by Construction Norway and Hoffmann were on a level with the same period last year. Last year’s half year profits included costs of NOK 47 million in total, related to the spinoff of the property development operation and financial effects.

Net interest-bearing assets amounted to NOK 2.5 billion at quarter-end, compared to NOK 3.1 billion at the beginning of the year. The statement of financial position totalled NOK 17.2 billion at the end of Q2, compared to NOK 17.5 billion at the beginning of the year.

The Q2 order intake was NOK 10.1 billion, compared to NOK 11.5 billion in Q2 2020. The order book totalled NOK 39.7 billion at quarter-end, compared to NOK 39.5 billion one year ago. There was an increase in orders for public buildings and transport infrastructure, while demand for commercial and residential buildings fell. Approximately two-thirds of the order book will be converted into revenue in the next 12 months.

The second-quarter LTI (lost time injury) rate was 5.5, up from 5.0 in the previous quarter and 4.7 in Q2 2020. No serious injuries were reported during the quarter. The sick leave rate was 4.7%, down on the preceding quarter (5.2%).

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

For more information, contact:
Jimmy Bengtsson, Group 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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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