“Taking market conditions into consideration, we delivered good earnings in 2024 and the profitability of our projects and company is good. The number of construction-starts in the fourth quarter was the highest in three years and at the end of the year we had 829 homes with a total value of NOK 6.1 billion under construction,” says CEO Sverre Molvik.

The IFRS result for the year and for the fourth quarter itself was lower than in 2023 because of fewer delivered units. The NGAAP result, which uses the percentage of completion method, was however better than 2023 because of an increase in the number of homes under construction and good profitability in the projects.

“We are optimistic about 2025. The activity in the company is increasing, the order backlog is at a solid level and market conditions are improving. We have roughly 400 homes for sale and if the market remains good, we can in addition start sales on more than 600 new homes during the next half year,” according to Molvik.
 
Highlights of the fourth quarter 2024 (fourth quarter 2023)

• Gross sales* amounted to 160 homes (99) with a sales value of NOK 1 121 million (NOK 602 million)
• Net sales* were 122 homes (88) with a sales value of NOK 849 million (NOK 531 million)
• Net construction starts for 298 homes (130), net completions of 168 (331) and net deliveries of 172 to buyers (276)
• Net 829 homes under construction (784) with a combined sales value of NOK 6 134 million (NOK 4 496 million)
• 61 per cent (62 per cent) of homes under construction sold at 31 December
• 81 (95) completed homes unsold at 31 December
• IFRS**: Operating revenues of NOK 498 million (NOK 1 247 million), EBITDA adjusted for financial expenses NOK 87 million (NOK 203 million), corresponding to a margin of 17.4 per cent (16.3 per cent)
• Earnings per share: NOK 0.50 (NOK 1.16)
• NGAAP***: Operating revenues of NOK 877 million (NOK 565 million), EBITDA of NOK 96 million (NOK 39 million), corresponding to a margin of 10.9 per cent (7 per cent)

 
Highlights of 2024 (2023)

• IFRS**: Operating revenues of NOK 1 971 million (NOK 3 255 million), EBITDA adjusted for financial expenses NOK 320 million (NOK 452 million), corresponding to a margin of 16.2 per cent (13.9 per cent)
• Earnings per share: NOK 1.90 (NOK 2.62)
• The board proposes a dividend of NOK 1.25 per share (NOK 1.00) for the second half. Total ordinary dividend for the year will be NOK 1.25 per share (NOK 2.00)
• NGAAP***: Operating revenues of NOK 2 544 million (NOK 2 153 million), EBITDA of NOK 220 million (NOK 202 million), corresponding to a margin of 8.7 per cent (9.4 per cent)
• Gross sales* amounted to 665 homes (435) with a sales value of NOK 4 363 million (NOK 2 585 million)
• Net sales* were 568 homes (360) with a sales value of NOK 3 673 million (NOK 2 108 million)
• Net construction starts for 559 homes (275), net completions of 514 (744) and net deliveries of 532 to buyers (655)

 
* 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.