Veidekke: Results Q2 2022
Veidekke achieved revenues of NOK 9.9 billion in Q2, and a pre-tax profit of NOK 355 million. The profit per share was NOK 1.9. The group’s order book totalled NOK 44 billion at quarter-end.
Veidekke achieved revenues of NOK 9.9 billion in Q2 2022, compared to NOK 9.8 billion in the second quarter of 2021. The pre-tax profit totalled NOK 355 million, compared to a profit of NOK 391 million in Q2 2021. Four of the group’s five business areas improved their profitability year-on-year. The exception was Construction Sweden, where profits remained weak and below Q2 2021 levels. Overall, the profit margin was 3.6%, compared to 4.0% in the second quarter of 2021.
“We are very satisfied to see four of our five business areas improve their profit margins in challenging markets. However, the group's overall result dropped somewhat from last year, mainly as a result of unrealised capital losses on our financial investments,” says Jimmy Bengtsson, Group CEO Veidekke.
“The measures we have taken over the past couple of years are starting to produce results, and we have responded well to a challenging market situation and higher commodity prices. We are confident of further progress, and continue to work towards our long-term objectives,” says Bengtsson.
The group’s quarterly order intake was NOK 13.2 billion, compared to NOK 10.1 billion in Q2 2021. Operations in Norway accounted for the bulk of new orders. At quarter-end, the order book amounted to NOK 44.2 billion, up from NOK 39.7 billion last year. Around two-thirds of the order book will be converted into revenue in the next 12 months.
“The group’s order book is strong, particularly for the Norwegian operations. The contracts we secured in Q2 are of high quality and in line with our selectivity strategy,” says Jimmy Bengtsson.
“Going forward, we will continue to select projects with the right risk profile and refine our approach to risk management in the context of project execution. We will adopt commercially sound priorities for our robust cash holdings that allow us to exploit opportunities and maintain progress, including in the current weaker market,” says Jimmy Bengtsson.
Net interest-bearing assets totalled NOK 2.0 billion at the end of Q2 2022, compared to NOK 3.7 billion at the beginning of the year. The drop is due to the payment of dividends, normal seasonal fluctuations in the asphalt and aggregates segments, and weak operational cash flow from the Swedish operations. Cash flow from operational activities amounted to NOK 28 million in the first half of the year, compared to NOK 554 million in the first half of 2021. The statement of financial position totalled NOK 17.0 billion at quarter-end, compared to NOK 17.2 billion one year ago and NOK 17.3 billion at the beginning of the year.
The second-quarter LTI (lost time injury) rate was 2.2, compared to 5.4 in the first quarter of the year and 5.5 in Q2 2021. The sick leave rate was 4.7%, on a par with the preceding quarter and the second quarter of last year.
Veidekke has adopted ambitious environmental and climate targets, and intends to reduce its greenhouse gas emissions by 50% by 2030 and to reach net zero by 2045. These targets have now been validated by the Science Based Targets initiative.
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 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.
