“Veidekke again achieved strong results in the third quarter. Although the prevailing circumstances resulted in varying project profitability, the group as a whole delivered a robust performance,” says Group CEO Jimmy Bengtsson.
“The construction and civil engineering markets continue to feel the effect of challenges such as long lead times, high raw material prices and increased energy costs. Our projects are also affected. However, we have responded constructively to the situation by adapting to the circumstances,” says Bengtsson.
“Veidekke is maintaining its strong order book of high-quality projects. Much of the quarterly order intake is attributable to the success of our operational entities in maintaining profitable, productive long-term customer relationships,” says Jimmy Bengtsson.
Veidekke achieved revenues of NOK 9.6 billion in Q3 2022, compared to NOK 9.3 billion in the third quarter of last year. The profit before tax totalled NOK 545 million, compared to NOK 530 million in Q3 2021. The profit margin was 5.7%, on a par with the third quarter of 2021. Construction Sweden improved its performance year-on-year, while Infrastructure Norway’s profits fell slightly on the back of lower activity in the asphalt operation. The performance of the other operations was on a par with last year.
Net interest-bearing assets totalled NOK 2.3 billion at the end of Q3 2022, compared to NOK 3.7 billion at the beginning of the year and NOK 3.2 billion one year ago. Cash flow from operational activities amounted to NOK 474 million in the third quarter, compared to NOK 784 million in Q3 2021. The statement of financial position totalled NOK 17.9 billion at quarter-end, compared to NOK 17.6 billion one year ago and NOK 17.3 billion at the beginning of the year.
The group’s quarterly order intake was NOK 7.6 billion, compared to NOK 8.4 billion in Q3 2021. At quarter-end, the order book amounted to NOK 43.7 billion, up from NOK 40.1 billion last year.
The third-quarter LTI (lost time injury) rate was 2.4, compared to 2.2 in the preceding quarter and 5.7 in Q3 2021. The sick leave rate was 4.6%, compared to 4.7% in Q2 2022 and 4.2% in the third quarter of last year.
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
Veidekke is one of Scandinavia's largest contractors. In addition to undertaking all types of building and civil engineering assignments, the group 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.
|Report Q3 2022|
|Presentation Q3 2022|
|Historical financial information per Q3 2022||xlsx|