Veidekke had sales of NOK 8.4 billion in the first quarter. Profit before tax was NOK -55 million. At the end of the quarter, the group had an order backlog of NOK 39.6 billion. Earnings per share were NOK -0.4.

In a quarter characterized by low season, the majority of Veidekke's businesses deliver good results, but extraordinary financial costs contribute to a weaker result for the group than last year, says CEO Jimmy Bengtsson.

The supply of new projects has been consistently good at the beginning of 2022, and Veidekke has strengthened the order backlog, says Bengtsson.

The challenges through the pandemic with uncertain goods deliveries and increased raw material prices have intensified with the war in Ukraine and will contribute to high uncertainty also in the future. Veidekke follows developments closely and has a close dialogue with suppliers to ensure competitive prices and ensure the progress of the projects, says Jimmy Bengtsson.

Turnover in the quarter amounted to NOK 8.4 billion, compared with NOK 8.3 billion in the first quarter of 2021. Profit before tax was NOK -55 million, compared with NOK 28 million in the first quarter of 2021. Last year included a capital gain of NOK 39 million. The group's result in the first quarter was characterized by the low season in Asphalt, Crushed stone and gravel and parts of the construction business. In most business areas, profitability was on a par with the first quarter of last year, albeit somewhat weaker in the Swedish construction business. Extraordinary financial expenses totaled NOK 33 million, of which NOK 13 million is related to the redemption of bond loans and NOK 20 million is an unrealized capital loss on financial investments due to turmoil in the financial market. The overall profit margin was -0.7%, compared with 0.3% in the first quarter of 2021.

The net interest-bearing position was NOK 3.3 billion at the end of the first quarter of 2022, compared with NOK 3.7 billion at the turn of the year. Cash flow from operating activities amounted to NOK 1 million, an increase from NOK -185 million in the first quarter last year. The balance at the end of the quarter was NOK 16.5 billion, the same as a year ago, but down from NOK 17.3 billion at the turn of the year.

Order intake in the quarter amounted to NOK 10.4 billion, compared with NOK 9.8 billion in the first quarter of 2021. At the end of the first quarter, the order backlog amounted to NOK 39.6 billion, compared with NOK 37.9 billion a year earlier. About two-thirds of the order backlog will be traded in the next twelve months.

The total H1 value (number of absence injuries per million working hours) in the first quarter was 5.4, the same as in the previous quarter, while the H1 value in the first quarter of 2021 was 5.0. Absence due to illness was 4.7% in the quarter, compared with 4.6% in the previous quarter and 5.2% in the first quarter of 2021.

This information is subject of the disclosure requirements acc. To section 5-12 of the Securities Trading Act.

Contact:

Jimmy Bengtsson

CEO

T: +47 984 70 000

Lars Erik Lund

Executive Vice President

T: +47 413 31 369

Jorgen Wiese Porsmyr

CFO

T: +47 907 59 058

Veidekke is one of Scandinavia's largest contractors. The company performs all types of building and construction assignments, maintains roads and produces asphalt, crushed stone and gravel. Involvement and local knowledge characterize the business. The turnover is about NOK 38 billion, and half of the 7,800 employees own shares in the company. Veidekke is listed on the Oslo Stock Exchange and has always made a profit since its inception in 1936.

(C) 2022 Electronic News Publishing, source ENP Newswire