“While the majority of Veidekke’s operations delivered satisfactory results in a quarter historically marked by seasonal downturns, extraordinary finance costs contributed to a weaker group performance than last year,” says Group CEO Jimmy Bengtsson.
“The first quarter of the year saw a strong inflow of new projects in most segments, bolstering Veidekke’s order book,” says Bengtsson.
“Challenges experienced by the group during the Covid-19 pandemic, such as unreliable supply and increased commodity prices, have intensified as a result of the war in Ukraine, and will remain uncertainty factors going forward. Veidekke is monitoring developments closely and maintaining supplier dialogues to secure competitive prices and safeguard project progression,” says Jimmy Bengtsson.
Veidekke achieved revenues of NOK 8.4 billion in Q1 2022, compared to NOK 8.3 billion in the first quarter of 2021. The pre-tax loss totalled NOK -55 million, compared to a profit of NOK 28 million in Q1 2021 (which included a gain on sale of NOK 39 million). The group’s first-quarter performance was impacted by seasonal downturns in the asphalt and aggregates operations, as well as some civil engineering segments. Most business areas achieved profitability on a par with Q1 2021, with the exception of Construction Sweden, which experienced a weaker quarter. Extraordinary finance costs amounted to NOK 33 million, including NOK 13 million linked to redemption of a bond loan and NOK 20 million in unrealised losses on financial investments, attributable to turbulence in the financial markets. Overall, the profit margin was -0.7%, compared to 0.3% in the first quarter of 2021.
Net interest-bearing assets totalled NOK 3.3 billion at the end of Q1 2022, compared to NOK 3.7 billion at the beginning of the year. Cash flow from operational activities amounted to NOK 1 million in Q1, up from NOK -185 million in Q1 2021. The statement of financial position totalled NOK 16.5 billion at quarter-end, on a par with the corresponding quarter of last year but down from NOK 17.3 billion at the beginning of the year.
The group’s quarterly order intake was NOK 10.4 billion, compared to NOK 9.8 billion in Q1 2021. At quarter-end, the order book amounted to NOK 39.6 billion, up from NOK 37.9 billion last year. Around two-thirds of the order book will be converted into revenue in the next 12 months.
The first-quarter LTI (lost time injury) rate was 5.4, on a par with the preceding quarter and slightly up from 5.0 in Q1 2021. The sick leave rate was 4.7%, compared to 4.6% in the preceding quarter and 5.2% in the first 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 7,800 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.
| Title | File type |
| Report Q1 2022 | |
| Presentation Q1 2022 | |
| Historical financial information per Q1 2022 | xlsx |