AF Gruppen’s revenues were NOK 8,112 million (7,485 million) in Q4 and profit before tax was NOK 635 million (614 million), which corresponds to a profit margin of 7.8% (8.2%). Revenues totalled NOK 27,868 (27,015) for the year. Profit before tax was NOK 1,580 million (1,447 million) for 2021. This corresponds to a profit margin of 5.7% (5.4%). The total order backlog was NOK 38,646 million (30,617 million) as at 31 December 2021.  

AF Gruppen is in a strong financial position. Net operating cash flow was NOK 301 million (-86 million) in Q4 and NOK 1,415 million (1,189 million) for the full year. As at 31 December 2021, AF Gruppen had net interest-bearing receivables of NOK 29 million (90 million). Earnings per share for 2021 were NOK 9.60 (9.29). The Board of Directors proposes a dividend for payment of NOK 6.50 (6.50) per share in the first half of 2022.

“We’re reporting very good results for the quarter and for the year as a whole. In the course of 2021, we have also taken great steps in safety work, and our goal of zero serious injuries and work-related absence remains in place. It is very pleasing that satisfaction among our employees is high, and that we once again have been named the industry’s most attractive employer among contractors in this year’s Universum survey amongst students,” says Amund Tøftum, CEO of AF Gruppen.

AF imposes the same strict requirements on all its partners and suppliers as it does on its own employees. The goal is zero serious injuries and work-related absence. Figures from subcontractors are included in the injury statistics. The LTI rate for Q4 was 0.9 (2.4). For 2021, the LTI rate was 1.1 (1.8).

AF works in a systematic and targeted manner in order to avoid work-related absence. Sickness absence for Q4 was 4.9 per cent (4.7 per cent). For 2021, sickness absence was 4.6 per cent (4.6 per cent).Absence due to illness the last two years is somewhat higher than in previous years and must be seen in connection with the ongoing infection situation in society.

“AF Gruppen will be a safe, eco-friendly, innovative and profitable contractor. We resolve key challenges in society, in combination with creating profitable business opportunities for AF Gruppen. Several of our units deliver solutions within the circular economy and recycling of natural resources, and the same units are achieving very good profitability in a market with ever-increasing demand,” Tøftum says.

 

Selected highlights from the quarter:

  • The activity level in Civil Engineering was somewhat lower in the fourth quarter compared to the same quarter last year, while the profit margin was significantly improved. Overall, the business area reported a very good result, and AF Anlegg, Målselv Maskin & Transport, Eiqon and Consolvo delivered good profitability for the quarter.
  • The Construction business area increased turnover compared to the same period last year, and delivered satisfactory profitability in the quarter. Haga & Berg, AF Bygg Oslo and Strøm Gundersen stand out with excellent results, while AF Bygg Østfold and Åsane Byggmesterforretning report good results for the quarter. Increased raw material prices have impacted the result for the year.
  • Betonmast delivered overall weak profitability in the quarter, and as expected, profitability is weaker than other operations in AF Gruppen. There was a wide variation in the earnings of the various units in Norway. Betonmast Oslo, Romerike, Østfold, Trøndelag and Buskerud-Vestfold delivered solid results in the quarter as a result of good operations and several projects in the completion phase. After the end of the quarter, an agreement has been concluded with an investor group to sell Betonmast Telemark.
  • Property enjoyed good sales during the quarter, especially for the Bekkestua Have and Rolvsrud Idrettspark project. A total of 135 (90) residential properties were sold in the quarter, of which AF’s share was 60 (37). A total of 550 (433) residential properties were sold in 2021, of which AF’s share was 256 (160). The sales ratio for commenced projects was 83%.
  • Energy and Environment increased its level of activity and delivered a very good result in the quarter. AF Decom had good profitability for both demolition and recycling at AF’s environmental centres. The environmental centres recycled a total of 344,437 tonnes (528,758 tonnes) of material in 2021. AF Energi delivered very good results in the quarter.
  • The Sweden business area, which includes AF’s Swedish operations in civil engineering, building, property and demolition, increased revenues compared to the same quarter the previous year and reported a strong result in the quarter. In the Swedish civil engineering market, Kanonaden achieved a 43% revenue growth compared to the same quarter last year and the unit continues to deliver very good results.HMB and AF Härnösand Byggreturer delivered very good results in the quarter that reflect good operations and some projects in the closing phase. AF Projektutveckling, AFs property business in Sweden, has concluded the sale of the completed Donnergymnasiet school project, which significantly impacts the result for the quarter.
  • Revenues for Offshore increased significantly compared with the fourth quarter last year and profitability was very good. AF Offshore Decom delivers solid revenue growth and significantly improved profitability compared to the corresponding quarter last year. The good result in the quarter was due to high production and good operations at AF Miljøbase Vats, as well as a successful offshore campaign. There is also ongoing preparatory work for the coming offshore campaigns and demolition at the environmental base in 2022.