AF Gruppen (AFG) recorded first quarter revenues of NOK 7,187 million. Profit
before tax was NOK 186 million in the quarter, an improvement from the
corresponding quarter in 2023. In the first three months of the year, the group
had a very strong increase in revenue within Civil Engineering and solid order
intake within Construction.
Revenue for the first quarter was NOK 7,187 million (7,393 million). Earnings
before tax were NOK 186 million (13 million) in the first quarter. This
corresponds to a profit margin of 2.6 % (0.2%). AF Gruppen had an order backlog
of NOK 40,275 million (41,668 million) at the end of the quarter.
"AF Gruppen improves the profit compared to last year, but we are not satisfied
with the overall profitability of the group. We delivered good results in Civil
Engineering and Energy and Environment. The order backlog maintains at a high
level considering the current market situation," says Amund Tøftum, CEO of AF
Gruppen.
AF Gruppen is in a strong financial position. Cash flow from operating
activities was NOK 128 million (-24 million) for the 1st quarter of 2024. As at
31 March 2024, AF Gruppen had net interest-bearing liabilities of NOK 974
million (570 million). Earnings per share for the quarter were NOK 1.30 (-0.03).
The Board proposed to the General Meeting of shareholders a dividend of NOK 3.50
(6.50) per share for distribution during the first half of 2024.
AF imposes the same strict safety requirements on all its partners and suppliers
as it does on its own employees. Everyone should arrive home safely from our
projects, and figures from subcontractors are included in the injury statistics.
The LTI rate for the first quarter was 0.8 (1.4). The company works
systematically and in a targeted manner to avoid work-related absences, and the
sick leave rate for the first quarter was 4.5% (4.4%).
"Society has very ambitious goals for reducing energy consumption up to 2030. AF
Gruppen delivers solutions that reduce overall energy consumption and increase
the proportion of energy from renewable sources. We are a total supplier
offering services ranging from consulting, prefabrication and installation to
operation of solutions for buildings and industry. In addition, we have built up
a portfolio of central energy plants. We see increasing demand for energy
services and AF Energi has had a growth in revenue of more than 30% in the past
year," says Tøftum.
Selected highlights from the quarter:
- AF Anlegg had a high level of activity and good profitability in the 1st
quarter. The civil engineering business had significant growth of 41% compared
to the same quarter last year. AF Anlegg had record-high revenues during the
quarter and delivered good results in the 1st quarter, with solid profit
contributions from several projects. AF Anlegg has several major projects in
production, and in general there is a high level of activity and good
operational performance in the projects. Målselv Maskin & Transport and
Stenseth & RS reported good results for the 1st quarter.
- Construction had a reduced level of activity, but delivered increased
profitability compared to the same quarter last year. AF Bygg Østfold delivered
very good results in the 1st quarter. AF Byggfornyelse, Haga & Berg, Strøm
Gundersen, Strøm Gundersen Vestfold, HTB and ÅBF delivered good results.
- Betonmast had a negative result in the 1st quarter, and a lower level of
activity compared to the same quarter last year. The Betonmast Røsand and
Østfold units delivered good results for the quarter. Betonmast
Buskerud-Vestfold and Innlandet delivered results somewhat below expectations.
Betonmast Oslo, Trøndelag and Boligbygg had weak results in the quarter.
- Property had low sales in the quarter due to a challenging property market.
Sales contracts for 19 (20) homes were signed in the quarter, of which AF's
share is 8 (9). In the first quarter, a total of 103 homes were handed over.
There were three residential property projects in the production stage at the
end of the quarter. A total of 735 units are in production, of which AF's share
is 319. The sales ratio for commenced projects is 70%.
- Energy and Environment had revenue growth of 18% in the first quarter compared
with the same quarter last year, and delivered good profitability. AF Energi has
significantly increased its level of activity compared to the same quarter last
year. A high level of activity and good operational performance in the projects
resulted in a good result for the 1st quarter. AF Decom had revenue growth in
the 1st quarter compared with the same quarter last year, but had a result
somewhat below expectations for the quarter.
- AF's Swedish activities within civil engineering, construction, property and
demolition have been gathered in the Swedish business area. Sweden had a decline
in revenues of 29% compared to the same quarter last year, and a profit before
tax of zero. AF Prefab i Mälardalen delivered very good results in the 1st
quarter and Kanonaden delivered good results in the first quarter. The former
Betonmast Sweden units have negative results this quarter also.
- Offshore has increased its level of activity compared to the same quarter last
year. Aeron maintained a high level of activity and reported good profitability
for the quarter. AF Offshore Decom had higher revenues than the corresponding
quarter last year, related to several offshore campaigns completed during the
quarter. Overall, the unit delivered a weak result for the quarter.
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