Copyright © Inderes 2011 - present. All rights reserved.
  • Latest
  • Markets
    • Stock Comparison
    • Financial Calendar
    • Dividends Calendar
    • Research
    • Articles
  • inderesTV
  • Forum
  • About Us
    • Our Coverage
    • Team
Regulatory press release

AFG: High level of activity and record high order backlog

AF Gruppen
AF Gruppen (AFG) recorded second quarter revenues of NOK 7,853 million. Profit
before tax was NOK 292 million in the second quarter, corresponding to a profit
margin of 3.7%. During the quarter, the Group had a very good order intake
within Civil Engineering and solid margin improvements within Construction.

Revenues for the second quarter totalled NOK 7,853 million (NOK 8,292 million)
and amounted to NOK 15,246 million (NOK 15,101 million) for the first half of
the year. Profit before tax was NOK 292 million (426 million) in the second
quarter and NOK 305 million (635 million) for the first half of the year. This
resulted in a profit margin of 3.7% (5.1%) for the second quarter and 2.0%
(4.2%) for the first half of the year. AF Gruppen had an order intake of NOK
10,877 million in the second quarter and an order backlog of NOK 44,693 million
(42,003 million) at the end of the quarter.

"We are maintaining a high level of activity and have a solid order intake,
especially within the Civil Engineering business area. It is also gratifying
that we are delivering good results within Civil Engineering, as well as within
Energy and Environment. The Construction business area had a solid margin
improvement from the first quarter," says Amund Tøftum, CEO of AF Gruppen.

Net operating cash flow was NOK 227 million (619 million) in the second quarter
of 2023 and NOK 203 million (NOK 1,226 million) for the first half of the year.
As at 30 June 2023, AF Gruppen had net interest-bearing liabilities of NOK 1,582
million (-145 million). Earnings per share amounted to NOK 1.72 (NOK 2.67)
during the second quarter, and NOK 1.69 (NOK 4.07) for the first half of the
year.

AF imposes the same strict safety requirements on all its partners and suppliers
as it does on its own employees. AF's subcontractors are included in the injury
statistics. The LTI rate for the second quarter was 0.7 (1.7). For the first six
months of 2023 the LTI rate was 1.1 (1.3).

AF works in a systematic and targeted manner in order to avoid work-related
absence. Absence due to illness in the second quarter was 3.9% (4.1 %), and for
the first six months of 2023 4.2% (4.8%).

"Innovation is one of four strategic initiatives in our corporate strategy.
Digital solutions and AI provide better support for decision-making and more
efficient project execution. We both develop innovative solutions ourselves and
invest in venture companies that can help shape our industry. We have been
actively using AI for several years and are very positive about the
opportunities this represents for the construction industry," says Tøftum.



Selected highlights from the quarter:


o Civil Engineering had a high level of activity in the quarter and delivered a
good result. AF Anlegg had two major projects in production and several major
projects in the start-up phase at the end of the quarter. E6 Rentvannstunnel in
Oslo and Bergtunnlar Lovö in Stockholm both have a high level of activity and
good operations. The projects E1 Vannbehandlingsanlegg at Huseby in Oslo, the
Cable Tunnel between Sogn and Ulven in Oslo, E6 Storhove-Øyer, and Mo i Rana
airport are in the start-up phase. Målselv Maskin & Transport had strong
revenue growth and a very good result in the second quarter. Stenseth & RS
reported a good result.

o The Construction business area maintained a high level of activity, with
improved results and margins when compared with the same quarter last year. AF
Bygg Østfold, Strøm Gundersen, Strøm Gundersen Vestfold and Haga & Berg had very
good results in the quarter, while AF Håndverk and Åsane Byggmesterforretning
reported good results. The Construction business area had a significant order
intake and five contracts were reported to the stock exchange during this
quarter.

o Betonmast reports a result below expectations in the 2nd quarter, with
improved profitability compared to the same quarter last year. There was a wide
variation in the earnings of the units. The Betonmast Trøndelag, Romerike,
Røsand and Asker and Bærum units delivered good results in the quarter.

o Property consists of two operating units, AF Eiendom and LAB Eiendom, with a
local presence in Greater Oslo and the Bergen region respectively. Sales
contracts for 16 (64) homes were signed in the quarter, of which AF's share is 7
(29). So far this year, sales contracts have been signed for 36 (121) homes, of
which AF's share is 17 (54). There were six residential property projects in
the production stage at the end of the quarter. A total of 885 units are in
production, of which AF's share is 410. This gives a sales ratio of 75% for
commenced projects.

o Energy and Environment had a higher level of activity in the second quarter,
and overall achieved a good result that was on par with the same quarter last
year. AF Decom, which demolishes and sorts different materials for recycling,
maintained its level of activity in the second quarter when compared with the
same quarter last year. The unit delivered a result that was somewhat below
expectations. AF Energi reported significant revenue growth during the quarter.
A high level of activity and good operational performance in the projects
contributed to a good second quarter result for AF Energi.

o In total, the Sweden business area delivered a positive result for this
quarter, however there was still a large gap between the best and weakest
performances. Kanonaden, AF Prefab in Mälardalen and AF Härnösand Byggreturer
reported both revenue growth and very good results for this quarter. AF Bygg
Syd and HMB made good profit contributions, however margins for the quarter were
somewhat below expectations. Other construction units deliver negative results
also for the 2nd quarter.

o The Offshore business area delivered a good result for the quarter. AF
Offshore Decom demolishes and facilitates the recycling of offshore
installations, and delivered good profitability, with a high level of activity
at the Environmental Base at Vats during the second quarter. Aeron had a high
level of activity during the quarter and very good profitability.



For further information:

Amund Tøftum, CEO, mobile +47 920 26 712
Anny Øen, CFO, mobile +47 982 23 116
Knut Ekern, Communications Director, mobile +47 930 02 600.


www.afgruppen.no
Find us on social media
  • Inderes Forum
  • Youtube
  • Facebook
  • X (Twitter)
Get in touch
  • info@hcandersencapital.dk
  • Bredgade 23B, 2. sal
    1260 København K
Inderes
  • About us
  • Our team
  • Careers
  • Inderes as an investment
  • Services for listed companies
Our platform
  • FAQ
  • Terms of service
  • Privacy policy
  • Disclaimer
Inderes’ Disclaimer can be found here. Detailed information about each share actively monitored by Inderes is available on the company-specific pages on Inderes’ website. © Inderes Oyj. All rights reserved.
  • Latest
  • Markets
    • Stock Comparison
    • Financial Calendar
    • Dividends Calendar
    • Research
    • Articles
  • inderesTV
  • Forum
  • About Us
    • Our Coverage
    • Team