One of the most rewarding things I do is to visit our projects. Getting up close and seeing the entrepreneurial spirit and dedication put into our projects is a great inspiration. AF Gruppen completes more than 2,000 large and small projects every year. We build roads, water supply systems, schools, and hospitals and more, and structures are demolished and recycled.
The AF culture is characterised by systematic work to safeguard health, protect the environment and uphold safety. Our job is to ensure that everyone can return home safely at the end of the working day, which is why we include both our own employees and employees of subcontractors in our safety statistics. Good safety performance requires us to maintain good risk management practices and a high level of compliance throughout the organisation, and I am glad to see a positive development in this regard in 2023.
2023 was a year with highs and lows for AF. On the one hand, we have delivered very strong results in Construction and Energy and Environment, and profitability has improved for the Construction business area. On the other hand, significant downscaling of project estimates in the former Betonmast Sweden units, Betonmast Boligbygg and one of our offshore projects impacted AF’s total profitability. This is unsatisfactory.
2024 is the final year of the current strategy period, with ambitious goals of profitable growth. Through our strategic initiatives, we will increase our competitiveness and promote profitable growth. The impact our projects have on climate and the environment is becoming increasingly important. We are well positioned and have built leading expertise over time to deliver high quality, cost-effective projects with consideration for the environment. Close collaboration with customers and suppliers is key to finding solutions that meet the needs of the future.
Innovation and the use of digital solutions and artificial intelligence have a natural place in our project activities. In addition, we invest in venture companies that can help shape the construction industry. Current developments contribute to an industry which appeals to young people, both men and women. We have made it a priority to further enhance the attractiveness of the industry. Above all, we aim to showcase both the opportunities the industry can offer, and the exciting projects we in AF are helping to implement.
Our people are our greatest asset. A recent employee satisfaction survey confirmed that AF’s employees have a high level of job satisfaction and well-being at work. We believe that job satisfaction and well-being at work creates a commitment that enables us to deliver good and future-proof services together.
The impact of the current geopolitical situation continues to create great uncertainty in the market, and may affect our operations in the time to come. Therefore I am happy to see that we are entering 2024 with a solid order backlog and motivated employees. Our adaptability and drive will ensure that we are well equipped to seize opportunities when the market returns. We look forward to carrying out even more socially beneficial projects in the years ahead.
Building for the future
CEO Amund Tøftum describes 2023 as a year with highs and lows for AF: The overall profitability was impacted by the unsatisfactory performance of some projects, but large parts of the business have delivered very good results.