Veidekke

Earnings Release • Aug 15, 2019

Veidekke ASA: Q2 2019 results

Veidekke ASA: Q2 2019 results

Veidekke generated revenues of NOK 10.1 billion in the second quarter of 2019,

achieving a pre-tax profit of NOK 451 million. Veidekke's construction

operations received NOK 8.7 billion in new orders during the quarter, bringing

the order book to NOK 35.3 billion as at 30 June.

"Veidekke had a positive development in the second quarter. There is good

momentum in the construction operations in all three countries, and I am pleased

to see our improvement efforts in the industrial operation bearing fruit. The

property development operation performed particularly well in Norway, and there

are also signs of improvement in residential sales in and around Stockholm,"

says Group CEO Arne Giske.

"We are now starting to see some results of the improvement measures we have

implemented over the past year, and we will maintain our efforts to improve the

group's profitability," says Giske.

"Veidekke has ambitious injury-reduction targets. We emphasise risk prevention

and making all employees aware of the importance of working as safely as

possible. In the past quarter, we noted a substantial reduction in the number of

recorded injuries," says Group CEO Arne Giske.

Veidekke generated revenue of NOK 10.1 billion in Q2 2019, representing an

increase of 10% on the corresponding quarter of last year. The construction

operations accounted for most of this growth.

The quarterly pre-tax profit was NOK 451 million. The industrial operation has

made satisfactory progress over the past 12 months, primarily on the back of

increased volumes and profitability in the asphalt business. In the property

development operation, good residential sales in Oslo and gains on sales of

residential projects boosted results. Considerably improved results in the

Norwegian civil engineering business contributed to the construction operation's

profit increase.

The construction operation booked new orders in the second quarter to the amount

of NOK 8.7 billion. As at quarter-end, the construction order book stood at NOK

35.3 billion, of which 66% will be converted into revenue over the next 12

months.

Net interest-bearing debt amounted to NOK 4.3 billion as at 30 June, compared to

NOK 1.5 billion at the beginning of the year. The increase in interest-bearing

debt is primarily attributable to payments under previously signed contracts for

land purchases in both Norway and Sweden, as well as normal seasonal

fluctuations in the first half of the year. Dividends totalling NOK 669 million

were distributed in May.

Revenues in the first half of 2019 totalled NOK 18.6 billion, representing

growth of 14% over the first six months of 2018. The increase is primarily

attributable to the Norwegian and Swedish building construction operations. The

group achieved profits of NOK 431 million in the first half of the year.

The group's second-quarter LTI (lost time injury) rate - which specifies the

number of injuries per one million working hours - was 4.0 in Q2 2019, compared

to 5.0 in the preceding quarter and 5.3 in Q2 2018. The sick leave rate was

3.8%, compared to 4.6% in the first quarter and 3.4% in the second quarter of

last year.

For more information, please contact:

· Group CEO Arne Giske, tel. +47 905 89 526, arne.giske@veidekke.no

· Finance Director Jørgen G. Michelet, tel. +47 917 43 856,

jorgen.michelet@veidekke.no

· EVP Communications and Public Affairs Lars Erik Lund, tel. +47 413 31 369,

lars.lund@veidekke.no

For press images, see www.flickr.com/photos/veidekke

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This information is subject to a disclosure duty pursuant to section 5-12 of the

Securities Trading Act.

Veidekke is one of Scandinavia's largest construction and property development

companies. The company undertakes all types of building construction and civil

engineering contracts, develops residential projects, maintains roads, and

produces asphalt and aggregates. The company is known for its involvement and

local knowledge. Its annual turnover is approximately NOK 36 billion, and half

of its 8,600 employees own shares in the company. Veidekke is listed on the Oslo

Stock Exchange and has always posted a profit since it was founded in 1936.