Veidekke: Q2 2023 results

Veidekke achieved revenues of NOK 11.2 billion in Q2, and a pre-tax profit of NOK 387 million. The group’s order book totalled NOK 45.0 billion at quarter-end. The profit per share was NOK 2.0.

“Veidekke has maintained high activity levels and stable profitability despite more challenging market conditions, and has increased group profits compared to last year,” says Group CEO Jimmy Bengtsson.

“The group’s quarterly order inflow was robust and broad-based in terms of both geographical spread and market segments. The order book of the Norwegian construction operation is particularly strong, and although we are anticipating flatter growth going forward, we also expect activity levels to remain satisfactory. The order book of the Swedish construction operation has followed the sharp downturn in the residential property market, and we now expect declining activity levels in the months ahead,” says Jimmy Bengtsson.

“Meanwhile, demand for major infrastructure projects remains high in both Norway and Sweden, although the profits of the Norwegian infrastructure operation were weaker than anticipated. This is primarily attributable to tougher market conditions in the groundworks, foundation and aggregates segments,” says Bengtsson.

“Overall, the quarterly results illustrate our ability to adapt to challenging markets. Our project portfolio is highly diverse, featuring a range of customer groups and projects with different drivers in numerous geographical regions. Moreover, we continue to be selective in the assignments we take on. We remain focused on securing improvements and see continued high potential for boosting our profitability,” says Bengtsson.

Veidekke achieved revenues of NOK 11.2 billion in Q2 2023, up 13% from NOK 9.9 billion in the second quarter of 2022. The increase is attributable to Construction Norway, Hoffman and Infrastructure Sweden.

Higher activity levels improved the group’s nominal result, with the quarterly pre-tax profit totalling NOK 387 million, compared to NOK 355 million in the second quarter of last year. Overall, the profit margin was 3.5%, compared to 3.6% in Q2 2022.

The group’s quarterly order intake was NOK 12.2 billion, compared to NOK 13.2 billion in Q2 2022. Around two-thirds of the order book will be converted into revenue in the next 12 months. At quarter-end, the order book amounted to NOK 45.0 billion, up 9% since the start of the year and up 2% on the same quarter last year.

Net interest-bearing assets totalled NOK 1.1 billion at the end of Q2 2023, compared to NOK 2.0 billion last year. Cash flow from operational activities amounted to NOK 499 million in the first half of the year, compared to NOK 28 million in the first half of 2022. The state­ment of financial position totalled NOK 16.8 billion at quarter-end, compared to NOK 17.6 billion at the beginning of the year and NOK 17.0 billion one year ago.

The second-quarter LTI (lost time injury) rate was 3.7, compared to 3.9 in the first quarter of the year and 2.2 in Q2 2022. No serious injuries occurred during the second quarter. The sick leave rate was 4.2%, down from 6.2% in the preceding quarter and 4.7% in the second quarter of last year.

Revenues in the first half of 2023 totalled NOK 20.6 billion, compared to NOK 18.3 billion in the first half of 2022. The pre-tax profit for the first half-year amounted to NOK 240 million, compared to NOK 300 million in the same period last year. The result for the first half of 2023 includes a settlement with the Norwegian Public Roads Administration relating to the E39 motorway which had a negative profit effect of NOK -110 million. Adjusted for the settlement, the first-half 2023 profit was NOK 350 million. A positive liquidity effect of NOK 300 million will have effect in Q3. The overall profit margin totalled 1.2% as at 30 June 2023, compared to 1.6% one year ago. Adjusted for the settlement, the profit margin was 1.7%.

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 39 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.

Title File type
Report Q2 2023 pdf
Presentation Q2 2023 pdf
Historical financial information per Q2 2023 xlsx