Bifogade filer
Report 1st quarter 2024
Webcast Q1 2024
Prenumeration
Beskrivning
| Land | Norge |
|---|---|
| Lista | OB Match |
| Sektor | Fastigheter |
| Industri | Projektering |
Selvaag Bolig delivered 179 homes with satisfactory margins in the first quarter.
“Considering the market conditions the results in the quarter were good. We succeed, among other things, because we always enter into fixed-price construction contracts that include pay and price increases. That gives us good cost control,” says CEO Sverre Molvik.
At the end of the quarter Selvaag Bolig had 671 homes with a total sales value of NOK 3.95 billion under construction.
“The market for new housing has been challenging for the last two years with high construction costs and high costs of living. We have nevertheless managed to keep the order backlog at a level that ensures future results, and we now experience that construction costs have stabilized and that the market has improved.
“This will make it possible to start construction on more projects going forward. Sales in the first quarter were the best since the first quarter of 2022,” says Molvik.
During the quarter, Selvaag Bolig sold 139 homes net and now has approximately 400 homes for sale. If the market improvement continues, the company could start sales of projects with a total potential of a further 700 homes throughout the rest of the year.
The live webcast of the presentation can be viewed from 0830 here. An English transcript of the presentation will be made available on the company’s website.
Highlights of the first quarter 2024 (first quarter 2023)
- Gross sales* amounted to 154 homes (152) with a sales value of NOK 868 million (NOK 874 million)
- Net sales* were 139 homes (116) with a sales value of NOK 760 million (NOK 658 million)
- Net construction starts for 123 homes (5), net completions of 236 (161) and net deliveries of 179 to buyers (150)
- Net 671 homes under construction (1,097) with a combined sales value of NOK 3,948 million (NOK 5,641 million)
- 62 per cent (69 per cent) of homes under construction sold at 31 March
- 126 (37) completed homes unsold at 31 March
- IFRS**: Operating revenues of NOK 628 million (NOK 734 million), EBITDA adjusted for financial expenses NOK 106 million (NOK 110 million), corresponding to a margin of 16.9 per cent (14.9 per cent)
- Earnings per share: NOK 0.60 (NOK 0.70)
- NGAAP***: Operating revenues of NOK 547 million (NOK 595 million), EBITDA of NOK 45 million (NOK 72 million), corresponding to a margin of 8.2 per cent (12 per cent)
* Units sold are sales contracts entered into with customers pursuant to the Norwegian Housing Construction Act and the Tenancy Act in Sweden. In accordance with the IFRS, they are recognised as income on delivery. Net sales include Selvaag Bolig’s share of joint venture projects. Gross sales include all homes in joint venture projects.
** Pursuant to the IFRS, all profit is recognised when the homes are delivered to the buyer. Profit pursuant to the IFRS accordingly derives primarily from homes which began to be built roughly two years ago.
*** The accounts pursuant to Norwegian generally accepted accounting principles (NGAAP) utilise the percentage of completion method. This means that profits are recognised on the basis of construction progress and sales in the projects. That presents ongoing value creation in the company.