A rise in profit before tax for 2014 has been reported by Norwegian-based contractor Veidekke’s construction division, at NOK549 million (€64.75 million) compared to NOK446 (€52.60 million) in 2013.

President and CEO Arne Giske said 2014 had been a good year for Veidekke with healthy growth and improved profits.

He said, “It is gratifying to note that all the business areas have strengthened their positions and have had a consistently high level of activity. Although the fall in oil prices has created greater uncertainty in the Norwegian market, we enter 2015 with a strong order backlog, good prospects, and solid market and customer positions in most areas.”

Veidekke operates in building construction and civil engineering nationwide in Norway and Denmark, while its operations in Sweden are concentrated in and around Stockholm, Gothenburg, Malmö and Helsingborg.

The group’s construction sector turnover for 2014 was NOK18.5 billion (€2.18 billion), rising from NOK17.0 (€2.00 billion) in 2013.

Building construction accounts for 65% of the group’s total construction revenue – primarily made up of commercial buildings, residential buildings, schools and other public buildings. Civil engineering operations accounted for 35% of construction’s total revenue, with projects including transport (road and rail), hydropower and wind farms, industrial projects, and other facilities such as underground car parks, quays and airports.

Most of the building construction and civil engineering work is undertaken through group subsidiaries Veidekke Entreprenør (Construction Norway), Hoffmann (Construction Denmark) and Veidekke Entreprenad (Construction Sweden).

In the industrial segment of the group’s business, Veidekke Industri (Veidekke Industrial) claims to be the largest asphalt contractor in Norway and the country’s second largest producer of aggregates. Industrial is also a major player in the operation and maintenance of public roads.

Asphalt operations accounted for 67% of Veidekke Industrial’s revenue in the 2014 financial year, while road services accounted for 23% and production of aggregates 10%. Turnover was NOK4.1 billion (€483.36 million) up from NOK3.5 billion (€412.63 million) a year earlier.

A report from Veidekke last month forecast growth for Scandinavian markets for 2015 and 2016.

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