Veidekke, one of Scandinavia's largest construction and property development companies, ended the year with strong revenue growth and good earnings in the fourth quarter.
Revenue in 2016 totalled NOK30.1 billion (€3.4 billion), an increase of 23% compared with 2015. Profit before tax for the year increased to NOK1.46 billion (€0.16 billion) from NOK1.04 billion (€0.11 billion) in 2015.
CEO and president Arne Giske said, “2016 was a good year for Veidekke. We rounded a new milestone with total revenue exceeding NOK30 billion (€3.4 billion), and significantly increased our earnings.
“A good order intake in the construction operations and record-high residential production made this possible.”
Veidekke's revenue totalled NOK8.7 billion (€0.97 billion), while profit before tax was NOK429 million (€48 million). The group had an order intake of NOK6.2 billion (€0.7 billion) in the fourth quarter, resulting in a total order backlog of NOK24.4 billion (€2.7 billion) at the end of the quarter.
Revenue in Veidekke's construction operations totalled NOK6.9 billion (€0.77 billion) in the fourth quarter, an increase of 13% compared with the corresponding quarter last year. Profit before tax amounted to NOK185 million (€20.8 million).
The construction operations in Sweden and Denmark showed profit growth for the quarter, while the profit from the Norwegian construction operations was weaker than the previous year as a result of the write-down of four civil engineering contracts.
Giske said, "There is a high level of activity in the construction operations in all three countries, but we see regional differences and feel strong competition for the major transport infrastructure contracts.”
He added, "Residential sales are high in our main markets and the level of activity has been historically high this year. Our projects have been well received, and in 2016 we sold residential units for NOK8.6 billion (€0.96 billion).”
Revenue from Veidekke's industrial operations was NOK1.1 billion (€0.12 billion) in the fourth quarter. Profit before tax amounted to NOK34 million (€3.8 million).