Selvaag Bolig (SBO) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 sales value, nearly NOK 1.4 billion, the highest since listing, with strong second-hand market and low inventory levels.

• EPS of NOK 0.85 in Q2, up from NOK 0.55 year-over-year, aided by one-off property sales.

• Dividend for H1 postponed to year-end due to market uncertainty and unsold inventory.

• Construction costs have stabilized, enabling more sales starts.

• Strong cash position and solid land bank support future operations.

Financial highlights

• Q2 2024 operating revenues (IFRS) at NOK 620.2 million, down from NOK 836.9 million in Q2 2023; H1 2024 at NOK 1,247.9 million vs NOK 1,571.1 million in H1 2023.

• Adjusted EBITDA for Q2 2024 at NOK 124 million (Q2 2023: NOK 95 million); H1 2024 at NOK 230 million (H1 2023: NOK 205 million).

• Net income per share at NOK 0.85 in Q2, up from NOK 0.55 last year.

• One-off property sales contributed NOK 230 million to Q2 revenue.

• Book value of equity at NOK 25 per share; equity ratio 51.7%.

Outlook and guidance

• Positive outlook driven by supply constraints in Oslo and Akershus, expected to drive price growth.

• Interest rates expected to fall from H2 2024, improving market conditions and purchasing power.

• Plans to maintain guidance of 515 units completed in 2024, with 80% sold by Q2 end.

• Well positioned for market recovery with ~425 units for sale as of August 2024.

• Dividend for 2024 to be assessed in February 2025 based on annual results and outlook.