Veidekke ASA: Q3 results

Veidekke ASA: Q3 results

11.11.2021 - 08:05

Veidekke achieved revenues of NOK 9.3 billion in Q3. The pre-tax profit of NOK 530 million equates to a quarterly profit per share of NOK 2.90. The order book totalled NOK 40 billion at quarter-end.

“Veidekke achieved stable revenue and improved its profits in the quarter, with the infrastructure operations standing out amid strong performances throughout the group,” says Jimmy Bengtsson, Group CEO, Veidekke ASA.

“Over the year since third quarter last year, we raised our profits by about NOK 200 million. Our profit margin has increased to 3.6%, and we are on track to achieve our profitability targets. There is still considerable potential for improving profitability and, with a solid cash position, we are well equipped for investment in further growth,” says Bengtsson.

“Activity in the construction and civil engineering market appears to have returned to pre-pandemic levels. Several major construction and civil engineering orders in Oslo and eastern Norway have boosted Veidekke’s order book above NOK 40 billion for the first time. While high timber and rebar prices remain an industry-wide challenge, we expect most delivery difficulties to be temporary and to be resolved in the foreseeable future,” says Bengtsson.

Veidekke achieved revenues of NOK 9.3 billion in Q3, compared to NOK 9.5 billion in the third quarter of last year. The quarterly pre-tax profit totalled NOK 530 million, up from NOK 505 million in Q3 2020. The result of the Swedish operations included a NOK 21 million allocation in respect of restructuring costs related to reorganisation. The profit increase compared to last year is attributable to Infrastructure Norway and Infrastructure Sweden. Overall, the profit margin increased to 5.7%, up from 5.3% in Q3 2020. All operational areas improved their profitability compared to last year, with the exception of Construction Sweden, which experienced a weak quarter.

Net interest-bearing assets amounted to NOK 3.2 billion at quarter-end, compared to NOK 3.1 billion at the beginning of the year. The statement of financial position totalled NOK 17.6 billion at the end of Q3, compared to NOK 17.5 billion at the beginning of the year.

The Q3 order intake was NOK 8.4 billion, compared to NOK 6.4 billion in Q3 2020. The order book totalled NOK 40 billion at quarter-end, compared to NOK 37.7 billion one year ago. There was an increase in orders for public buildings and for other civil engineering projects, while demand for transport infrastructure, commercial buildings and residential buildings fell. Approximately two-thirds of the order book will be converted into revenue in the next 12 months.

The third-quarter LTI (lost time injury) rate was 5.7, up from 5.5 in the previous quarter and 4.4 in Q3 2020. No serious injuries were reported during the quarter. The sick leave rate was 4.2%, down on the preceding quarter (4.7%).

Earlier this year, Veidekke decided to implement a structural and organisational reorientation of the Swedish operation. As a result, Veidekke Sweden has now been split into two operational entities: Construction Sweden and Infrastructure Sweden. The new organisational structure is reflected in the group’s reporting as of Q3 2021.

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, +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 8,100 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.