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Veidekke
Quarterly Report • Nov 7, 2024
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Quarterly Report
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Veidekke – Third quarter 2024
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Key figures
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| Figures in NOK million | Q3 2024 | Q3 2023 | 30.09.2024 | 30.09.2023 | 2023 |
|---|---|---|---|---|---|
| Revenue | 9 656 | 10 387 | 29 914 | 31 012 | 43 146 |
| Profit/loss before tax | 616 | 601 | 1 125 | 841 | 1 444 |
| Construction Norway | 129 | 165 | 427 | 465 | 710 |
| Infrastructure Norway 1 | 321 | 283 | 336 | 90 | 222 |
| Construction Sweden | 36 | 41 | 124 | 88 | 106 |
| Infrastructure Sweden | 76 | 62 | 133 | 114 | 213 |
| Denmark | 76 | 65 | 210 | 182 | 300 |
| Other | -22 | -15 | -105 | -97 | -107 |
| Profit margin | 6.4% | 5.8% | 3.8% | 2.7% | 3.3% |
| Operating profit/loss (EBIT) | 590 | 603 | 1 056 | 829 | 1 409 |
| Operating margin | 6.1% | 5.8% | 3.5% | 2.7% | 3.3% |
| Operating profit/loss before depreciation and amortisation (EBITDA) | 851 | 862 | 1 835 | 1 593 | 2 454 |
| Shareholders' share of profit/loss | 465 | 441 | 831 | 595 | 1 069 |
| Profit/loss per share (NOK) | 3.4 | 3.3 | 6.2 | 4.4 | 7.9 |
| Net interest-bearing assets | 2 110 | 1 446 | 2 110 | 1 446 | 2 776 |
| Net cash flow from operations | 1 165 | 589 | 1 042 | 1 087 | 2 939 |
| Return on equity past 12 months | 49% | 43% | 49% | 43% | 41% |
| Order book | 41 043 | 40 704 | 41 043 | 40 704 | 40 374 |
| - Of which to be executed next 12 months | 24 387 | 26 827 | 24 387 | 26 827 | 24 890 |
| Order intake | 7 628 | 4 953 | 27 574 | 27 501 | 37 718 |
| LTI rate | 2.4 | 1.7 | 4.1 | 3.1 | 4.7 |
| Sickness absence | 4.7% | 5.0% | 5.4% | 5.5% | 5.5% |
1 The profit before tax in 2023 includes the settlement with a profit effect of NOK -110 million linked to an older dispute involving the civil engineering operation.
Q3 2024 results
Veidekke achieved revenues of NOK 9.7 billion in Q3, and a pre-tax profit of NOK 616 million. The group's order book totalled NOK 41 billion at quarter-end. The profit per share was NOK 3.4.
"Veidekke has delivered a solid third-quarter performance. The margin on the project portfolio continues to rise, and is making up for reduced activity levels. As in earlier quarters of the year, Infrastructure Norway has delivered the greatest improvement," says Group CEO Jimmy Bengtsson.
"Our order book is strong, and the robust intake of both residential and commercial building orders indicates stable activity levels for Construction
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Norway in 2025. Infrastructure Norway was awarded a major new contract related to the Fornebu Line after quarter-end, and we see many interesting opportunities in the infrastructure sector going forward. In Sweden, we secured several new contracts for commercial buildings during the quarter, and the infrastructure order book remains strong," says Bengtsson.
Veidekke's quarterly revenues totalled NOK 9.7 billion, compared to NOK 10.4 billion in the third quarter of 2023. Revenues were down for the construction operations, but were stable elsewhere.
The third-quarter pre-tax profit amounted to NOK 616 million, up from NOK 601 million in Q3 2023. While the infrastructure operations and the Danish operation delivered higher profits, lower volumes reduced the profits of the Norwegian and Swedish construction operations. Overall, the profit margin was 6.4%, compared to 5.8% in the third quarter of 2023.
The group's quarterly order intake was NOK 7.6 billion, compared to NOK 5.0 billion in the same period last year. At quarter-end, the order book amounted to NOK 41.0 billion, compared to NOK 40.7 billion at the same time last year and NOK 40.4 billion at the beginning of the year. Approximately 60% of
the order book will be converted into revenue in the next 12 months.
Net interest-bearing assets totalled NOK 2.1 billion as at 30 September 2024, compared to NOK 1.4 billion one year ago. Cash flow from operational activities in the first three quarters of the year amounted to NOK 1.0 billion, down from NOK 1.1 billion in the corresponding period in 2023. The statement of financial position totalled NOK 17.7 billion as at 30 September, down from NOK 18.3 billion at the same time last year.
The group's LTI (lost time injury) rate was 2.4 in the third quarter, compared to 2.8 in the preceding quarter and 1.7 in Q3 2023. No serious injuries occurred during the quarter. The quarterly sick leave rate was 4.7%, compared to 5.3% in the preceding quarter and 5.0% in the third quarter of last year.
Construction Norway
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| NOK million | Q3 2024 | Q3 2023 | 30 Sep 2024 | 30 Sep 2023 | 2023 |
|---|---|---|---|---|---|
| Revenue | 3 230 | 3 695 | 10 694 | 11 762 | 16 225 |
| Profit/loss before tax | 129 | 165 | 427 | 465 | 710 |
| Profit margin | 4.0% | 4.5% | 4.0% | 4.0% | 4.4% |
| Order book | 14 866 | 14 922 | 14 866 | 14 922 | 14 760 |
| - To be executed next 12 mos. | 10 557 | 11 378 | 10 557 | 11 378 | 10 707 |
Construction Norway generated revenues of NOK 3.2 billion in the third quarter of 2024, compared to NOK 3.7 billion in Q3 2023. The revenue decline is attributable to the operations in eastern Norway and Trøndelag county, and reflects a reduced order intake in 2023. Compared to last year, revenues are also set to show a clear drop in Q4, although they are expected to stabilise in 2025. The Q3 pre-tax profit totalled NOK 129 million, down from NOK 165 million in the third quarter of last year. The quarterly profit margin was 4.0%, compared to 4.5% in Q3 2023. While the profitability of the project portfolio improved year-on-year, profits were impacted by reduced activity levels and resulting lower capacity utilisation. The third-quarter order intake was NOK 3.9 billion, up from NOK 2.4 billion in Q3 2023.
New contracts signed during the quarter:
- Mariakvartalet, residential project at Bjørvika in Oslo for Oslo S Utvikling. Contract value NOK 657 million.
- Grønvollkvartalet phase 1, residential project at Helsfyr in Oslo for Nordr. Contract value NOK 396 million.
- IBL 18, office building in Bergen for Midtbygget AS. Contract value NOK 394 million.
- Kragerø Resort Fri, holiday units in Kragerø for Fredensborg Fritid AS. Contract value NOK 197 million.
- Holssletta, office building in Ålesund for Ulsmo AS. Contract value NOK 193 million.
At quarter-end, the order book totalled NOK 14.9 billion, on a par with the total at the same time last year and marginally higher than the order book balance at the beginning of the year. NOK 10.6 billion of the order book is due to be executed in the next 12 months, compared to NOK 11.4 billion as at the end of Q3 2023.
Infrastructure Norway
| NOK million | Q3 2024 | Q3 2023 | 30 Sep 2024 | 30 Sep 2023 | 20231 |
|---|---|---|---|---|---|
| Total revenue | 2 754 | 2 798 | 7 332 | 6 641 | 9 325 |
| - Civil engineering | 1 431 | 1 300 | 4 677 | 4 016 | 5 725 |
| - Asphalt, Aggregates | 1 323 | 1 498 | 2 655 | 2 626 | 3 599 |
| Total profit/loss before tax | 321 | 283 | 336 | 90 | 222 |
| - Civil engineering | 89 | 63 | 219 | 68 | 167 |
| - Asphalt, Aggregates | 232 | 221 | 117 | 22 | 56 |
| Total profit margin | 11.7% | 10.1% | 4.6% | 1.3% | 2.4% |
| - Civil engineering | 6.2% | 4.8% | 4.7% | 1.7% | 2.9% |
| - Asphalt, Aggregates | 17.5% | 14.7% | 4.4% | 0.8% | 1.5% |
| Order book | 9 067 | 9 543 | 9 067 | 9 543 | 8 912 |
| - To be executed next 12 mos. | 3 821 | 4 149 | 3 821 | 4 149 | 3 973 |
1 The profit before tax in 2023 includes the settlement with a profit effect of NOK -110 million linked to an older dispute involving the civil engineering operation.
Infrastructure Norway achieved revenues of NOK 2.8 billion in the third quarter, on a par with the same quarter of last year. While revenues from civil engineering projects rose, the asphalt operation's revenues declined somewhat. The pre-tax profit totalled NOK 321 million, up from NOK 283 million in Q3 2023. The total profit margin was 11.7%, compared to 10.1% in the third quarter of last year.
The civil engineering operation generated revenues of NOK 1.4 billion in Q3, up from NOK 1.3 billion in the corresponding quarter of last year. The pre-tax profit totalled NOK 89 million, compared to NOK 63 million in Q3 2023. The quarterly profit margin was 6.2%, compared to 4.8% in the third quarter of 2023. The profit improvement is attributable to high activity levels and robust profitability in the portfolio of major civil engineering projects, as well as stronger profits and margins for the specialist engineering operation. The road maintenance operation achieved satisfactory profitability, albeit somewhat lower than in the same period in 2023.
The asphalt and aggregates operations achieved total revenues of NOK 1.3 billion in the third quarter, compared to NOK 1.5 billion last year. The quarterly profit was NOK 232 million, up from NOK 221 million in Q3 2023. Quarterly revenues were impacted by significantly lower volumes for the asphalt operation, although higher prices and a strong product mix boosted profits. The volume decline is the result of low central government and county demand.
Infrastructure Norway secured new orders valued at NOK 339 million in Q3, compared to NOK 342 million in the same period last year. At quarter-end, the order book totalled NOK 9.1 billion, compared to NOK 9.5 billion one year ago and NOK 8.9 billion at the beginning of the year. Although no major contracts were signed during the quarter, the operation has noted several interesting and relevant projects going forward. Road maintenance contracts accounted for NOK 4.0 billion of the order book, compared to NOK 4.5 billion in the corresponding quarter of 2023. Orders due to be executed in the next 12 months amounted to NOK 3.8 billion, compared to NOK 4.1 billion in the same period last year.
Construction Sweden
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| NOK million | Q3 2024 | Q3 2023 | 30 Sep 2024 | 30 Sep 2023 | 2023 |
|---|---|---|---|---|---|
| Revenue | 1 621 | 2 032 | 5 645 | 6 546 | 9 078 |
| Profit/loss before tax | 36 | 41 | 124 | 88 | 106 |
| Profit margin | 2.2% | 2.0% | 2.2% | 1.3% | 1.2% |
| Order book | 6 248 | 7 537 | 6 248 | 7 537 | 6 584 |
| - To be executed next 12 mos. | 4 176 | 6 009 | 4 176 | 6 009 | 4 881 |
Construction Sweden recorded revenues of NOK 1.6 billion in the third quarter, compared to NOK 2.0 billion in the same quarter of last year. Measured in local currency, revenue fell by 25%. The greatest revenue drops were recorded in the Stockholm region and by the Gothenburg-based subsidiary BRA.
The third-quarter profit was NOK 36 million, compared to NOK 41 million in Q3 of last year. The third-quarter profit margin was 2.2%, compared to 2.0% in Q3 2023. In response to falling earnings and low profitability over time, entities in the operation have implemented several rounds of capacity reductions, and are considering further measures on an ongoing basis.
The third-quarter order intake totalled NOK 1.8 billion, compared to NOK 1.0 billion last year, and largely comprised commercial buildings. There were no new residential projects.
New contracts signed in the quarter:
- VCC2, commercial building in Gothenburg for Steptura AB. Contract value NOK 687 million.
- Malmö Börshus, commercial building in Malmö for Wihlborg. Contract value NOK 148 million.
- WA1 Timber, commercial building in Gothenburg for Novo Energy Production AB. Contract value NOK 113 million.
At the end of the third quarter, the order book stood at NOK 6.2 billion, compared to NOK 7.5 billion in the same quarter last year and NOK 6.6 billion at the beginning of the year. Measured in local currency, the order book has shrunk by 8% in 2024. Orders due to be executed in the next 12 months amounted to NOK 4.2 billion as at 30 September 2024, compared to NOK 6.0 billion on the same date in 2023.
Infrastructure Sweden
| NOK million | Q3 2024 | Q3 2023 | 30 Sep 2024 | 30 Sep 2023 | 2023 |
|---|---|---|---|---|---|
| Revenue | 1 450 | 1 349 | 4 277 | 4 135 | 5 958 |
| Profit/loss before tax | 76 | 62 | 133 | 114 | 213 |
| Profit margin | 5.3% | 4.6% | 3.1% | 2.7% | 3.6% |
| Order book | 7 832 | 6 390 | 7 832 | 6 390 | 6 987 |
| - To be executed next 12 mos. | 3 662 | 3 390 | 3 662 | 3 390 | 3 174 |
Infrastructure Sweden generated revenues of NOK 1.5 billion in the third quarter of 2024, compared to NOK 1.3 billion in the same period last year. Revenues were stable and satisfactory in all parts of the operation.
The quarterly result was a profit of NOK 76 million, up from NOK 62 million last year. The profit improvement is attributable to strong activity levels and increased profitability of the project portfolio. The profit margin was 5.3%, compared to 4.6% one year ago.
The third-quarter order intake was NOK 1.3 billion, compared to NOK 1.0 billion in Q3 2023. One major new contract was signed during the quarter, relating to the construction of a section of the
Haga-Otterhällan line beneath central Gothenburg for the Swedish Transport Administration. The contract is valued at NOK 500 million.
At the end of the third quarter, the order book stood at NOK 7.8 billion, up from NOK 6.4 billion last year and NOK 7.0 billion at the beginning of the year. Measured in local currency, the order book has grown by 9% since the beginning of the year. Orders due to be executed in the next 12 months amounted to NOK 3.7 billion, compared to NOK 3.4 billion at the same time last year.
The acquisition of the northern Sweden-based company Euromining, announced in the second quarter, was completed after quarter-end.
Denmark
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| NOK million | Q3 2024 | Q3 2023 | 30 Sep 2024 | 30 Sep 2023 | 2023 |
|---|---|---|---|---|---|
| Revenue | 705 | 673 | 2 382 | 2 280 | 3 002 |
| Profit/loss before tax | 76 | 65 | 210 | 182 | 300 |
| Profit margin | 10.8% | 9.6% | 8.8% | 8.0% | 10.0% |
| Order book | 3 029 | 2 311 | 3 029 | 2 311 | 3 130 |
| - To be executed next 12 mos. | 2 171 | 1 901 | 2 171 | 1 901 | 2 155 |
The Danish operation – Hoffmann – achieved revenues of NOK 705 million in the third quarter, up from NOK 673 million in the corresponding quarter of last year. Measured in local currency, this corresponds to a 2% increase.
The pre-tax profit was NOK 76 million, compared to NOK 65 million in Q3 2023. The profit margin was 10.8%, up from 9.6% in the third quarter of 2023. The project portfolio is robustly profitable.
The third-quarter order intake totalled NOK 283 million, down from NOK 337 million in Q3 2023. The order book stood at NOK 3.0 billion at the end of the third quarter, compared to NOK 2.3 billion last year and NOK 3.1 billion at the beginning of the year. Orders due to be executed in the next 12 months amounted to NOK 2.2 billion, up from NOK 1.9 billion as at 30 September 2023.
Other operations
Other operations consist of unallocated costs associated with the group's corporate administration, the sale of administrative services to the group's Norwegian operations, financial management, the group's ownership role in Public-Private Partnerships (PPP) and the elimination of intra-group profits. The result for the third quarter was NOK -22 million, compared to NOK -15 million in Q3 2023.
Financial situation
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Net interest-bearing assets amounted to NOK 2.1 billion at quarter-end, compared to NOK 1.4 billion a year earlier and NOK 2.8 billion at the beginning of the year. Operational cash flow was strong, at NOK 1 billion, and was on a par with the same period last year. Cash flow from investment activities amounted to NOK 206 million as at 30 September 2024, and was positively impacted by the liquidation of several investments. In contrast, cash flow from investment activities amounted to NOK -998 million in the same period last year.
The statement of financial position totalled NOK 17.7 billion at quarterend, compared to NOK 18.3 billion last year and NOK 18.2 billion at the beginning of the year. As at the end of Q3 2024, Veidekke had not drawn down any of its total available credit of NOK 2.5 billion.
Shareholder information
| Largest shareholders as at 30 September 2024 | Shareholding |
|---|---|
| OBOS BBL | 19.5% |
| Folketrygdfondet | 11.1% |
| IF Skadeförsäkring AB | 3.7% |
| Pareto Asset Management | 3.5% |
| Vanguard | 3.0% |
| Verdipapirfond ODIN Norge | 2.5% |
| Must Invest AS | 2.3% |
| MP Pensjon PK | 2.0% |
| Storebrand Asset Management | 1.6% |
| DNB Asset Management AS | 1.4% |
| Total 10 largest shareholders | 50.6% |
| Others | 49.4% |
| Total | 100% |
| Total number of issued shares | 134 956 267 |
A total of 3.4 million Veidekke shares were traded in the third quarter of 2024. The share price fluctuated between NOK 112.00 and NOK 126.00, and was NOK 123.60 as at 30 September. The foreign shareholding percentage was 20.2%. Approximately 12% of the shares in the company are owned by Veidekke employees.
Related-party transactions
Veidekke is regularly involved in transactions with related parties in the course of its ordinary operations, including contracts for the development of specific projects. There were no other material
related-party transactions in the third quarter of 2024. For a more detailed statement on related-party transactions, see Veidekke's Annual and Sustainability Report 2023.
Risks
Veidekke's business primarily involves the execution of construction and infrastructure projects for private and public-sector clients in Norway, Sweden and Denmark. Recent years have been characterised by high inflation and higher interest rates. Although inflation has slowed, commodity prices remain high. These developments are impacting financial capacity and investment decisions in both the private and public sectors, and are resulting in deferment or redesign of planned projects and relatively weak sales of new residential units. Although Veidekke's order book was strong at the end of Q3 2024, the market outlook remains somewhat weak in the short term. The group is engaged in ongoing dialogue with clients and suppliers, and has an organisational and cost structure which allows rapid adaptation to altered framework conditions. While the group's order book was robust overall as at 30 September 2024, there were significant variations between different geographical regions and market segments.
Veidekke presents its outlook for the Scandinavian contracting markets twice a year. The market update is published on the Veidekke website.
Veidekke's project portfolio varies greatly in terms of complexity, size, duration and risk, and systematic risk management in all parts of the business and during all project phases is therefore of crucial importance. This encompasses matters such as project selection, processes, tender quality, project follow-up and project execution. Having the necessary expertise to ensure optimal assignment execution is key when deciding which projects to tender for. At the tender-preparation stage, risks are identified and assessed, and plans are made for managing risk during the execution phase. Veidekke's projects are increasing in size and complexity, making risk management a high priority. Certain forms of contract permit differing interpretations of contractual performance, giving room for disagreement between contractor and client regarding
final payment. Although Veidekke seeks to reach agreement with clients through negotiations, some disputes do end up in the court system. The group was not involved in any major ongoing court cases as at the end of Q3 2024.
For further discussion of the company's financial risk, climate risk and other risk factors, see Note 29 and Note 30 in Veidekke's Annual and Sustainability Report 2023.
Consolidated interim financial statement (unaudited)
A. FINANCIAL STATEMENT, Q3 2024 B. BUSINESS SEGMENTS C. STATEMENT OF CHANGES IN EQUITY D. NOTES TO THE INTERIM FINANCIAL STATEMENTS
Oslo, 7 November 2024 The board of directors of Veidekke ASA
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Egil Haugsdal Chair Hanne Rønneberg Per-Ingemar Persson Carola Lavén Pål Eitrheim Nils Morten Bøhler Anne-Lene Midseim Inge Ramsdal Knut Inge Opheim Arve Fludal Jimmy Bengtsson Group CEO
Statement of comprehensive income
| Figures in NOK million | Q3 2024 | Q3 2023 | 30 Sep 2024 | 30 Sep 2023 | As at 31 Dec 2023 |
|---|---|---|---|---|---|
| Revenue | 9 656 | 10 387 | 29 914 | 31 012 | 43 146 |
| Operating expenses | -8 807 | -9 524 | -28 104 | -29 434 | -40 715 |
| Share of net income from joint ventures | 2 | - | 24 | 15 | 23 |
| Operating profit before depreciation and amortisation (EBITDA) | 851 | 862 | 1 835 | 1 593 | 2 454 |
| Depreciation | -262 | -258 | -778 | -764 | -1 045 |
| Operating profit/loss (EBIT) | 590 | 603 | 1 056 | 829 | 1 409 |
| Financial income | 47 | 26 | 133 | 86 | 144 |
| Financial costs | -21 | -28 | -65 | -74 | -109 |
| Profit/loss before tax | 616 | 601 | 1 125 | 841 | 1 444 |
| Tax expenses | -135 | -132 | -248 | -185 | -293 |
| Profit/loss for the period | 480 | 469 | 877 | 656 | 1 151 |
| of which non-controlling interests | 15 | 28 | 46 | 61 | 81 |
| Profit/loss per share (NOK) | 3.4 | 3.3 | 6.2 | 4.4 | 7.9 |
| Figures in NOK million | Q3 2024 | Q3 2023 | 30 Sep 2024 | 30 Sep 2023 | As at 31 Dec 2023 |
|---|---|---|---|---|---|
| Profit/loss for the period | 480 | 469 | 877 | 656 | 1 151 |
| Revaluation of pensions | - | - | - | - | -19 |
| Net items that will not be reclassified subsequently to profit or loss | - | - | - | - | -19 |
| Currency translation differences | 51 | -42 | 44 | 42 | 68 |
| Fair value adjustment of financial assets | -1 | 6 | 5 | 13 | 8 |
| Net items that may be reclassified subsequently to profit or loss | 50 | -37 | 50 | 55 | 76 |
| Total comprehensive income | 530 | 433 | 927 | 711 | 1 207 |
| of which non-controlling interests | 17 | 27 | 50 | 60 | 83 |
Statement of financial position Veidekke group
| Figures in NOK million | 30 Sep 2024 | 30 Sep 2023 | 31 Dec 2023 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Goodwill | 2 115 | 2 067 | 2 088 |
| Other intangible assets | 194 | 210 | 200 |
| Rights of use assets | 953 | 942 | 1 030 |
| Land and buildings | 787 | 747 | 791 |
| Plant and machinery | 2 268 | 2 336 | 2 300 |
| Investments in joint ventures | 375 | 321 | 319 |
| Financial assets | 629 | 550 | 590 |
| Total non-current assets | 7 321 | 7 173 | 7 317 |
| Current assets Inventories |
1 072 | 696 | 740 |
| Trade and other receivables, contract assets | 6 879 | 8 649 | 7 166 |
| Financial investments | 582 | 326 | 925 |
| Cash and cash equivalents | 1 868 | 1 409 | 2 063 |
| Total current assets | 10 400 | 11 080 | 10 894 |
| Total assets | 17 722 | 18 253 | 18 212 |
| Figures in NOK million | 30 Sep 2024 | 30 Sep 2023 | 31 Dec 2023 |
|---|---|---|---|
| EQUITY AND LIABILITIES | |||
| Equity | |||
| Share capital | 67 | 67 | 67 |
| Other equity | 2 797 | 2 434 | 2 985 |
| Non-controlling interests | 23 | 90 | 46 |
| Total equity | 2 888 | 2 591 | 3 099 |
| Non-current liabilities | |||
| Pensions and deferred tax liabilities | 1 312 | 1 249 | 1 289 |
| Bonds | - | 193 | 193 |
| Amounts due to credit institutions | 339 | 102 | 313 |
| Other non-current liabilities | 604 | 730 | 585 |
| Total non-current liabilities | 2 254 | 2 274 | 2 380 |
| Current liabilities | |||
| Debts to credit institutions | 16 | - | 2 |
| Bonds | 193 | - | - |
| Trade payables and warranty provisions | 6 822 | 8 096 | 7 853 |
| Public duties and taxes payable | 1 808 | 1 681 | 1 205 |
| Other current liabilities and contract liabilities | 3 741 | 3 611 | 3 674 |
| Total current liabilities | 12 579 | 13 387 | 12 733 |
| Total equity and liabilities | 17 722 | 18 253 | 18 212 |
Statement of cash flows
| Figures in NOK million | Q3 2024 | Q3 2023 | 30 Sep 2024 | 30 Sep 2023 | As at 31 Dec 2023 |
|---|---|---|---|---|---|
| OPERATING ACTIVITIES | |||||
| Profit/loss before tax | 616 | 601 | 1 125 | 841 | 1 444 |
| Tax paid for the period | -91 | -31 | -329 | -255 | -308 |
| Depreciation, amortisation and impairments | 262 | 258 | 778 | 764 | 1 045 |
| Other operational items | 379 | -240 | -533 | -262 | 759 |
| Net cash flow from operating activities | 1 165 | 589 | 1 042 | 1 087 | 2 939 |
| INVESTING ACTIVITIES | |||||
| Acquisition/disposal of property, plant and equipment | -50 | -152 | -360 | -487 | -668 |
| Other investing activities | 103 | 37 | 119 | -868 | -664 |
| Investments in bond funds | - | - | 361 | 358 | -397 |
| Change in interest-bearing receivables | 249 | - | 87 | -1 | -290 |
| Net cash flow from investing activities | 302 | -116 | 206 | -998 | -2 019 |
| FINANCING ACTIVITIES | |||||
| Change in interest-bearing liabilities | -42 | -38 | 40 | -107 | 105 |
| Repayment of IFRS16 leases | -106 | -115 | -350 | -337 | -508 |
| Dividend paid | - | - | -1 066 | -1 046 | -1 046 |
| Other financial items | -87 | -59 | -135 | -84 | -305 |
| Net cash flow from financing activities | -236 | -211 | -1 511 | -1 573 | -1 753 |
| Total cash flow | 1 231 | 262 | -263 | -1 483 | -833 |
| Cash and cash equivalents, start of period | 591 | 1 127 | 2 063 | 2 714 | 2 714 |
| Exchange rate adjustment foreign cash balances | 46 | 20 | 67 | 179 | 182 |
| Cash and cash equivalents, end of period | 1 868 | 1 409 | 1 868 | 1 409 | 2 063 |
Net interest-bearing position
| Figures in NOK million | 30 Sep 2024 | 30 Sep 2023 | 31 Dec 2023 |
|---|---|---|---|
| Cash and cash equivalents | 1 868 | 1 409 | 2 063 |
| Financial investment (short-term) | 582 | 326 | 925 |
| Interest-bearing assets (short-term) | 206 | - | 292 |
| Interest-bearing assets (long-term) | 2 | 6 | 2 |
| Interest-bearing liabilities | -548 | -295 | -507 |
| Net interest-bearing position | 2 110 | 1 446 | 2 776 |
Other key figures
| Figures in NOK million | 30 Sep 2024 | 30 Sep 2023 | 31 Dec 2023 |
|---|---|---|---|
| Order book | 41 043 | 40 704 | 40 374 |
| Equity ratio | 16% | 14% | 17% |
| Return on equity past 12 months | 49% | 43% | 41% |
| Number of employees | 7 865 | 8 063 | 8 084 |
Business segments
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| Figures in NOK million | Q3 2024 | Q3 2023 | 30 Sep 2024 | 30 Sep 2023 | As at 31 Dec 2023 |
|---|---|---|---|---|---|
| Construction Norway | |||||
| Revenue | 3 230 | 3 695 | 10 694 | 11 762 | 16 225 |
| Operating expenses | -3 084 | -3 512 | -10 233 | -11 229 | -15 434 |
| Share of net income from joint ventures | - | - | - | - | - |
| Depreciation, amortisation and impairments | -42 | -42 | -128 | -127 | -172 |
| Operating profit/loss (EBIT) | 104 | 141 | 333 | 406 | 619 |
| Net financial items | 25 | 24 | 94 | 59 | 91 |
| Profit/loss before tax (EBT) | 129 | 165 | 427 | 465 | 710 |
| Total assets | 6 947 | 7 643 | 6 947 | 7 643 | 7 457 |
| Infrastructure Norge | |||||
| Revenue | 2 754 | 2 798 | 7 332 | 6 641 | 9 325 |
| Operating expenses | -2 280 | -2 348 | -6 531 | -6 097 | -8 477 |
| Share of net income from joint ventures | 3 | 3 | 3 | 4 | 10 |
| Depreciation, amortisation and impairments | -136 | -131 | -404 | -387 | -526 |
| Operating profit/loss (EBIT) | 341 | 323 | 399 | 162 | 332 |
| Net financial items | -20 | -39 | -64 | -72 | -109 |
| Profit/loss before tax (EBT) | 321 | 283 | 336 | 90 | 222 |
| Total assets | 5 485 | 6 201 | 5 485 | 6 201 | 4 921 |
| Figures in NOK million | Q3 2024 | Q3 2023 | 30 Sep 2024 | 30 Sep 2023 | As at 31 Dec 2023 |
|---|---|---|---|---|---|
| Construction Sweden | |||||
| Revenue | 1 621 | 2 032 | 5 645 | 6 546 | 9 078 |
| Operating expenses | -1 555 | -1 972 | -5 457 | -6 402 | -8 879 |
| Share of net income from joint ventures | -8 | 1 | - | 2 | -2 |
| Depreciation, amortisation and impairments | -20 | -21 | -60 | -63 | -94 |
| Operating profit/loss (EBIT) | 37 | 40 | 127 | 82 | 103 |
| Net financial items | -2 | 1 | -3 | 6 | 3 |
| Profit/loss before tax (EBT) | 36 | 41 | 124 | 88 | 106 |
| Total assets | 2 816 | 2 469 | 2 816 | 2 469 | 2 738 |
| Infrastructure Sweden | |||||
| Revenue | 1 450 | 1 349 | 4 277 | 4 135 | 5 958 |
| Operating expenses | -1 336 | -1 236 | -4 037 | -3 899 | -5 583 |
| Share of net income from joint ventures | - | -11 | - | -11 | -12 |
| Depreciation, amortisation and impairments | -37 | -39 | -109 | -110 | -150 |
| Operating profit/loss (EBIT) | 76 | 62 | 132 | 114 | 213 |
| Net financial items | - | - | 1 | - | - |
| Profit/loss before tax (EBT) | 76 | 62 | 133 | 114 | 213 |
| Total assets | 2 112 | 1 980 | 2 112 | 1 980 | 1 919 |
| Figures in NOK million | Q3 2024 | Q3 2023 | 30 Sep 2024 | 30 Sep 2023 | As at 31 Dec 2023 |
|---|---|---|---|---|---|
| Denmark | |||||
| Revenue | 705 | 673 | 2 382 | 2 280 | 3 002 |
| Operating expenses | -632 | -609 | -2 177 | -2 096 | -2 693 |
| Share of net income from joint ventures | - | - | - | - | - |
| Depreciation, amortisation and impairments | -8 | -6 | -22 | -20 | -26 |
| Operating profit/loss (EBIT) | 66 | 58 | 183 | 164 | 282 |
| Net financial items | 10 | 7 | 27 | 19 | 18 |
| Profit/loss before tax (EBT) | 76 | 65 | 210 | 182 | 300 |
| Total assets | 2 063 | 2 090 | 2 063 | 2 090 | 2 041 |
| Other operations1 | |||||
| Revenue | 70 | 118 | 204 | 249 | 324 |
| Operating expenses | -95 | -126 | -288 | -312 | -418 |
| Share of net income from joint ventures | 7 | 7 | 21 | 20 | 27 |
| Depreciation, amortisation and impairments | -19 | -20 | -55 | -58 | -78 |
| Operating profit/loss (EBIT) | -37 | -20 | -118 | -102 | -145 |
| Net financial items | 13 | 5 | 13 | 32 | |
| Profit/loss before tax (EBT) | -25 | -15 | -106 | -102 | -113 |
| Total assets | 2 185 | 2 074 | 2 185 | 2 074 | 4 175 |
1 Other operations include the group's net financial items and central unassigned costs.
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| Figures in NOK million | Q3 2024 | Q3 2023 | 30 Sep 2024 | 30 Sep 2023 | As at 31 Dec 2023 |
|---|---|---|---|---|---|
| Group eliminations | |||||
| Revenue | -173 | -279 | -620 | -600 | -766 |
| Operating expenses | 175 | 278 | 620 | 603 | 770 |
| Share of net income from joint ventures | - | - | - | - | - |
| Depreciation, amortisation and impairments | - | - | - | 1 | 2 |
| Operating profit/loss (EBIT) | 2 | - | - | 4 | 6 |
| Net financial items | - | - | - | - | - |
| Profit/loss before tax (EBT) | 2 | - | - | 4 | 6 |
| Total assets | -3 887 | -4 203 | -3 887 | -4 203 | -5 040 |
| Total Veidekke group segment accounts | |||||
| Revenue | 9 656 | 10 387 | 29 914 | 31 012 | 43 146 |
| Operating expenses | -8 807 | -9 524 | -28 104 | -29 434 | -40 715 |
| Share of net income from joint ventures | 2 | - | 24 | 15 | 23 |
| Depreciation, amortisation and impairments | -262 | -258 | -778 | -764 | -1 045 |
| Operating profit/loss (EBIT) | 590 | 603 | 1 056 | 829 | 1 409 |
| Net financial items | 26 | -3 | 69 | 12 | 35 |
| Profit/loss before tax (EBT) | 616 | 601 | 1 125 | 841 | 1 444 |
| Total assets | 17 722 | 18 253 | 17 722 | 18 253 | 18 212 |
Statement of changes in equity
| Equity holders of Veidekke ASA | Minority | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Figures in NOK million | Share capital | Other paid-in capital 1 |
Reevaluation of pensions |
Currency transla tion differences |
Other retained earnings |
Fair value adjustments 2 |
Total | Non-controlling interests |
Total |
| Equity at 1 January 2023 | 67 | 419 | -52 | -24 | 2 581 | -19 | 2 973 | 22 | 2 995 |
| Profit/loss for the period | - | - | - | - | 595 | - | 595 | 61 | 656 |
| Other comprehensive income | - | - | - | 43 | - | 13 | 56 | - | 55 |
| Share-based transactions employees | - | - | - | - | -34 | - | -34 | - | -34 |
| Transactions, non-controlling interests | - | - | - | - | -49 | - | -49 | 70 | 21 |
| Sale of own shares | - | - | - | - | 5 | - | 5 | - | 5 |
| Dividend | - | - | - | - | -1 046 | - | -1 046 | -62 | -1 108 |
| Equity at 30 September 2023 | 67 | 419 | -52 | 19 | 2 053 | -6 | 2 501 | 90 | 2 591 |
| Equity at 1 January 2023 | 67 | 419 | -52 | -24 | 2 581 | -19 | 2 973 | 22 | 2 995 |
| Profit/loss for the period | - | - | - | - | 1 069 | - | 1 069 | 81 | 1 151 |
| Other comprehensive income | - | - | -19 | 66 | 5 | 3 | 55 | 2 | 57 |
| Share-based transactions employees | - | - | - | - | -35 | - | -35 | - | -35 |
| Transactions, non-controlling interests | - | - | - | - | 32 | - | 32 | 3 | 35 |
| Sale of own shares | - | - | - | - | 5 | - | 5 | - | 5 |
| Dividend | - | - | - | - | -1 046 | - | -1 046 | -62 | -1 108 |
| Equity at 31 December 2023 | 67 | 419 | -71 | 43 | 2 610 | -16 | 3 053 | 46 | 3 099 |
| Equity at 1 January 2024 | 67 | 419 | -71 | 43 | 2 610 | -16 | 3 053 | 46 | 3 099 |
| Profit/loss for the period | - | - | - | - | 831 | - | 831 | 46 | 877 |
| Other comprehensive income | - | - | - | 41 | - | 5 | 46 | 4 | 50 |
| Share-based transactions employees | - | - | - | - | -27 | - | -27 | - | -27 |
| Transactions, non-controlling interests | - | - | - | - | 27 | - | 27 | -40 | -13 |
| Dividend | - | - | - | - | -1 066 | - | -1 066 | -32 | -1 098 |
| Equity at 30 September 2024 | 67 | 419 | -71 | 83 | 2 375 | -10 | 2 864 | 23 | 2 888 |
1 Paid-in capital over and above nominal value of shares.
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2 Financial assets and derivatives defined as hedging instruments that are both valued at fair value through comprehensive income.
Notes Veidekke group
Note 01. General information
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Veidekke is one of Scandinavia's largest construction companies. The company is headquartered in Oslo and is listed on the Oslo Stock Exchange. The consolidated accounts for Q3 2024 include Veidekke ASA and its subsidiaries and the group's investments in associates and joint ventures. At the end of Q3 2024, the group included essentially the same units as in the annual accounts submitted for 2023.
Accounting figures in quarterly accounts are not audited.
Note 02. Accounting principles
The group's financial reports are prepared in accordance with international accounting standards (IFRS) approved by the EU. The quarterly accounts have been prepared in accordance with IAS 34 on interim financial reporting, and comply with applicable stock-exchange rules. The quarterly accounts were prepared in accordance with the same accounting principles as the annual accounts for 2023.
The segment and financial statements presented are prepared in line with the same accounting principles, and there is therefore no difference between IFRS and the principles applied by management to follow up on business.
The quarterly accounts do not include all information required in a complete annual report and should therefore be read in conjunction with the group's annual accounts for 2023, which are available at www.veidekke.com.
Note 03. Operating income
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The tables below show the group's revenues for 2024 and 2023, split into service areas.
| Figures in NOK million | Construction Norway |
Infrastructure Norway |
Construction Sweden |
Infrastructure Sweden |
Denmark | Other | Group |
|---|---|---|---|---|---|---|---|
| Service area | |||||||
| Apartments and small houses | 2 512 | - | 441 | - | 68 | - | 3 021 |
| Commercial buildings | 4 196 | - | 4 025 | - | 1 508 | - | 9 730 |
| Public buildings | 3 556 | - | 901 | - | 528 | - | 4 985 |
| Transport infrastructure – road | - | 146 | - | 274 | - | - | 419 |
| Transport infrastructure – rail | - | 1 565 | - | 398 | - | - | 1 963 |
| Asphalt and aggregates | - | 2 649 | - | 492 | - | - | 3 141 |
| Water and sewerage | - | 910 | 87 | - | 997 | ||
| Other civil engineering | 430 | 1 666 | 277 | 2 205 | 190 | - | 4 767 |
| Maintenance contracts (road maintenance) | - | 1 306 | - | - | - | - | 1 306 |
| Other/Eliminations | - | - | - | - | - | -415 | -415 |
| Total 30 September 2024 | 10 694 | 7 332 | 5 645 | 4 277 | 2 382 | -415 | 29 914 |
| Construction | Infrastructure | Construction | Infrastructure | ||||
|---|---|---|---|---|---|---|---|
| Figures in NOK million | Norway | Norway | Sweden | Sweden | Denmark | Other | Group |
| Service area | |||||||
| Apartments and small houses | 2 791 | - | 975 | - | 14 | - | 3 780 |
| Commercial buildings | 4 249 | - | 4 712 | - | 1 160 | - | 10 121 |
| Public buildings | 3 915 | 305 | 543 | - | 855 | - | 5 617 |
| Transport infrastructure – road | - | 9 | - | 322 | - | - | 331 |
| Transport infrastructure – rail | - | 1 309 | - | 377 | - | - | 1 686 |
| Asphalt and aggregates | - | 2 659 | - | 500 | - | - | 3 159 |
| Water and sewerage | - | 754 | 29 | - | 783 | ||
| Other civil engineering | 806 | 1 199 | 316 | 2 181 | 222 | - | 4 724 |
| Maintenance contracts (road maintenance) | - | 1 161 | - | - | - | - | 1 161 |
| Other/Eliminations | - | - | - | - | - | -351 | -351 |
| Total 30 September 2023 | 11 762 | 6 641 | 6 546 | 4 135 | 2 280 | -351 | 31 012 |
Note 04.Estimates
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Veidekke's operations comprise construction projects. Accounting for project activities is largely based on estimates. The significant assessments when applying the group's accounting policies and the main sources of estimate uncertainty are the same at the end of Q3 2024 as in the 2023 annual accounts.
Note 05. Non-current assets
| Figures in NOK million | Q3 2024 | Q3 2023 | As at 31 Dec 2023 |
|---|---|---|---|
| Property, plant, equipment and other intangible assets | |||
| Carrying amount at start of period | 4 321 | 4 083 | 4 083 |
| Additions of non-current assets excl. Rights of use assets | 455 | 608 | 844 |
| Additions of Rights of use assets | 259 | 337 | 489 |
| Additions from acquisitions of operations | - | 19 | 18 |
| Disposals of non-current assets excl. Rights of use assets | -34 | -66 | -119 |
| Disposals of Rights of use assets | -5 | -8 | -9 |
| Depreciation/amortisation of non-current assets excl. Rights of use assets |
-442 | -446 | -577 |
| Depreciation of Rights of use assets | -336 | -318 | -460 |
| Reclassifications | -40 | - | - |
| Currency translation differences, etc. | 25 | 27 | 53 |
| Carrying amount at end of period | 4 203 | 4 235 | 4 321 |
| Other intangible assets | 194 | 210 | 200 |
| Rights of use assets | 953 | 942 | 1 030 |
| Land and buildings | 787 | 747 | 791 |
| Plant and machinery | 2 268 | 2 336 | 2 300 |
| Carrying amount at end of period | 4 203 | 4 235 | 4 321 |
| Figures in NOK million | Q3 2024 | Q3 2023 | As at 31 Dec 2023 |
| Goodwill | |||
| Carrying amount at start of period | 2 088 | 2 016 | 2 016 |
| Additions | - | 19 | 21 |
| Disposals | - | - | - |
| Impairment | - | - | -8 |
| Currency translation differences | 27 | 32 | 59 |
| Carrying amount at end of period | 2 115 | 2 067 | 2 088 |
Note 06.Operations significantly affected by seasonal fluctuations
The group's asphalt and aggregates operations, which report to the Infrastructure business area, are subject to seasonal fluctuations related to climatic conditions. Production takes place mainly between May and October, and, consequently, the bulk of the operation's turnover is generated during this period. However, costs related to salaried employees, maintenance of production facilities and depreciation accrue throughout the year. As a result, the quarterly accounts for the Infrastructure business area will, as a rule, fluctuate significantly.
Note 07. Acquisitions, sales of operations
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No acquisitions or divestments of operations took place in Q3 2024.
Veidekke completed the acquisition of 100% of the shares in Euromining AB on 25 October 2024. Euromining, with approx. 200 employees, is a machinery contractor that mainly targets the mining industry in northern Sweden. In 2023, the company produced revenues of NOK 750 million and an operating profit of approx. NOK 90 million. The largest customer is the mining and minerals group LKAB. Veidekke initially paid NOK 363 million to acquire the shares. Depending on achievements in the upcoming years, the final compensation may be higher. Euromining will be included in Veidekke's accounts from Q4 2024.
Note 08. Special items
Veidekke and the Norwegian Public Roads Administration agreed on the final settlement of the project E39 Svegatjørn–Rådal outside Bergen in Q1 2023. For Veidekke, the settlement entailed a NOK -110 million loss, which was been recorded under Infrastructure Norway.
Note 09. Financial instruments
There were no significant changes during the period related to financial risk and the group's use of financial instruments. For further details, see the annual report for 2023.
Note 10. Dividends
For the financial year 2023, a dividend of NOK 7.90 per share has been approved, which in total amounts to NOK 1 066 million. The dividend was approved at the Annual General Meeting on 7th May 2024, and was accounted for in Q2 2024.
Note 11. Loan agreement covenants
Veidekke has a NOK 1.75 billion overdraft facility with DNB (rolling 364-day maturity) and a NOK 0.75 billion credit facility with SEB (with maturity until 31. December 2025). Both facilities remained unutilised as at the end of third quarter 2024. Cash and cash equivalents amounted to NOK 1.9 billion, including NOK 0.6 billion invested in money market funds. Veidekke also has NOK 0.6 billion invested in bond funds. This investment has been classified as Financial investments in the Statement of financial position.
Veidekke has a bond loan in the amount of NOK 193 million that expires in March 2025.
Note 12. Events after the reporting date
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No events have occurred after the balance sheet date that would have had a significant effect on the submitted accounts.
On 25 October 2024, Veidekke acquired 100% of the shares in Euromining AB. The transaction is discussed in note 7.
Note 13. Alternative performance measures
Veidekke generally reports its financial results in line with International Financial Reporting Standards (IFRS). The following alternative performance measures are also reported:
EBITDA
EBITDA is an abbreviation for earnings before interest, taxes, depreciation and amortisation. The key figure indicates operational profitability after operating expenses have been deducted.
EBIT
EBIT is an abbreviation for earnings before interest and taxes. The key figure indicates operational profitability after operating expenses, depreciation and amortisation have been deducted.
Net interest-bearing position
An expression of the group's financial position, this key figure is determined from the group's capitalised interest-bearing debt on the date of calculation, less bank deposits and interest-bearing receivables, both current and non-current. This key figure is also included in the calculation of covenants in the loan agreement.
Order book
The order book provides an indication of future activity in the group's construction and civil engineering operations. The order book is defined as contracted and signed contracts on the measurement date. This key figure also includes road maintenance contracts in Infrastructure's Road maintenance unit.
Return on equity
This key figure indicates the return on equity during the period and is calculated by dividing the post-tax profit by average equity.
Profit for the last 12 months Average equity last 12 months
Average equity over the last 12 months is calculated by averaging equity over the preceding four quarters.
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. The annual turnover is NOK 43 billion, and nearly half of its 8 000 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.
