Veidekke

Earnings Release • Jun 22, 2023

Veidekke: New road maintenance contracts worth NOK 1.6 billion

Veidekke: New road maintenance contracts worth NOK 1.6 billion

In the course of the spring Veidekke has entered into four new contracts for

road maintenance of national and county roads. The contracts have a duration of

five years plus options for extensions, and an overall contract value of NOK

1.611 billion excluding VAT (without options).

"We are very pleased with the results in this year's tender round, and

especially proud to have won our largest contract to date of more than NOK 800

million with the Norwegian Public Roads Administration in tough competition with

five other players. We are now looking forward to taking over responsibility for

the new contracts in September. We will do what we can together with our clients

to ensure that road users experience good and safe driving conditions both in

summer and winter on our 24 contracts from Finnmark in the north to Agder in the

south," says Kjell Otto Bragstad, director of Veidekke Drift og Vedlikehold.

The new contracts enter into force on 1 September. At that point Veidekke will

have responsibility for road maintenance of 11,100 kilometres of national and

county roads annual revenues totalling around NOK 1.7 billion excluding VAT.

"We have won the contracts in the wake of good processes with thorough risk

assessments that provide us with a good basis to carry out the required work

while also ensuring a healthy economic situation in the operations," Bragstad

concludes.

The road maintenance contracts include routine operational tasks and minor

maintenance tasks on the road network (including pedestrian and cycle paths) to

ensure safe and efficient traffic and maintain the roads to ensure the desired

service life. In practice this means clearing, gritting, salting, tunnels and

sign cleaning, maintaining landscape areas, clearing ditches and drains,

cleaning roads and rest areas and emergency preparedness in the event of

accidents and extreme weather conditions.

Client Value Area Duration (and option)

Vestfold Telemark 180 Nedre Telemark 2023 - 2028 (1-2 years)

County

Municipality

Norwegian Public 807 Vestfold and Telemark East 2023 - 2028 (1-4 years)

Roads

Administration

Viken County 325 Ringerike 2023 - 2028 (1-4 years)

Municipality

Møre og Romsdal 299 Indre Romsdal 2023 - 2028 (1-4 years)

County

Municipality

The first three contracts totaling NOK 1,312 million were included in Veidekke's

order backlog for the first quarter, while the contract of NOK 299 million is

included in the order backlog for the second quarter of 2023.

For further information, please contact:

Kjell Otto Bragstad, Director of Road Maintenance, tel. +47 977 47 097, kjell

-otto.bragstad@veidekke.no

Helge Dieset, Communications Manager of Veidekke, tel. +47 90 55 33 22,

helge.dieset@veidekke.no

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Veidekke (http://www.veidekke.no)  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. Annual

turnover is approx. NOK 39 billion, and almost 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.