Results for an ‘even stronger Veidekke’

Norwegian-based construction and civil engineering company Veidekke has reported an increase in both revenue and profits for the third quarter of 2017.

Total revenue was up 6%, from NOK7.45 billion (€788 million) in the third quarter of 2016 to NOK7.91 billion (€836.68 million) in the third quarter of this year.

The increase was attributed to growth in the company’s construction operations in Sweden and Denmark, as well as its Swedish property development operations.

Veidekke’s construction operations generated a revenue of NOK6.1 billion (€645.31 million) in the third quarter of 2017, which represented an increase of 3% compared to the corresponding quarter of 2016.

In the construction segment, order intake for the quarter stood at NOK8.8 billion (€930.84 million), and the order backlog increased by 32% from the beginning of the year to NOK30.8 billion (€3.26 billion), with significant increases seen in Norway, Sweden and Denmark.

The company’s total profit before tax came to NOK523 million (€55.33 million), up from NOK507 million (€53.64 million) in the third quarter of 2016 – once the non-recurring effect of changes in Norway’s disability pension in 2016 had been accounted for.

Within this, profit before tax for the construction segment came to NOK185 million (€19.57 million), down from NOK213 million (€22.53 million) in the corresponding quarter of the previous year – again, once the non-recurring effect had been taken into accounted.

Profit in the segment took a knock from lower profitability in Norway, which was only slightly cushioned by higher profits in Sweden. Profit in Denmark remained at the same level as for the third quarter of 2016.

Veidekke’s total order intake came to NOK9 billion (€952.15 million), and at the close of the quarter the order backlog stood at NOK31.79 billion (€3.36 billion), representing a 9% increase from the previous quarter and a 30% increase from the beginning of the year.

The company’s EBITDA (earnings before interest, taxes, depreciation and amortization) for the third quarter was NOK552 million (€58.39 million), down from NOK618 (€65.37 million) in the corresponding quarter in 2016.

President and CEO Arne Giske said, “We need to concentrate on winning the right jobs. In the third quarter, we have won several major contracts, and the many new orders have resulted in a further strengthening of the order backlog.”

He added, “The market is good in most areas and segments, and I have every confidence that we will manage to exploit this to build an even stronger Veidekke.”