AF Gruppen’s revenues were NOK 8,568 million (8,112 million) in the fourth quarter and NOK 31,205 million (27,868 million) in 2022. Profit before tax was NOK 502 million (635 million) in the fourth quarter and NOK 1,400 million (1,580 million) for 2022. This corresponds to a profit margin of 5.9 per cent (7.8 per cent) in the fourth quarter and 4.5 per cent (5.7 per cent) in 2022. The total order backlog was NOK 39,765 million (38,646 million) as at 31 December 2022.
AF Gruppen is in a strong financial position. Net operating cash flow was NOK - 38 million (301 million) in the fourth quarter and NOK 1,460 million (1,415 million) for the full year. As at 31 December 2022, AF Gruppen had net interest-bearing debt of NOK 329 million (-29 million). Earnings per share for 2022 were NOK 8.96 (9.60). The Board of Directors proposes a dividend for payment of NOK 6.50 (6.50) per share for the first half of 2023.
"We achieved very good profitability in large parts of the Group during the quarter, particularly within Offshore and Energy and Environment. Civil Engineering reported a double-digit profit margin, and Betonmast showed positive development and achieved a good result for the quarter. The overall profitability for Construction and Sweden was not satisfactory, despite the fact that several units in both business areas delivered very strong results. There was too much variation in the performance of the units, and we are not satisfied with overall profitability in 2022," said 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 the fourth quarter was 0.9 (0.9). For 2022, the LTI rate was 1.1 (1.1).
AF works in a systematic and targeted manner in order to avoid work-related absence. Sick leave for the fourth quarter was 4.7 per cent (4.9 per cent). For 2022, sick leave was 4.6 per cent (4.6 per cent).
“In 2022, we entered into contracts for several large, complex projects with high social benefit. Among other things, AF Gruppen has been awarded two contracts from Oslo Municipality related to new water supply in Oslo, and we are working on several wind power projects in Sweden. We have been chosen as the contractor for a new airport in Mo i Rana, for which we are still in the collaboration phase. We have also entered into an agreement to construct a new cable tunnel in Oslo for Statnett, and we perform projects within construction and rehabilitation to reuse and refine existing buildings. These projects will enable us to use our expertise and abilities to execute challenging projects. These projects are important to ensurethat we continue to attract, develop and retain the industry's best management and professional expertise," Tøftum said.
Selected highlights from the quarter:
- Civil Engineering increased the level of activity compared to the same quarter last year and delivered very good results. AF Anlegg had two major projects in production at the end of the quarter: E6 Rentvannstunnel in Oslo and Bergtunnlar Lovö in Stockholm. AF Anlegg, Målselv Maskin & Transport, Eiqon and Stenseth & RS reported very good results for the quarter, and Consolvo achieved good profitability.
- The Construction business area increased revenues compared to the same period last year, however there was significant variation in performances and results that the units reported. High construction costs and energy prices negatively impacted the profitability of the units, and the business area as a whole delivered a weak result for the quarter. AF Bygg Oslo, Åsane Byggmesterforretning and Haga & Berg reported very good results, while Strøm Gundersen and HTB achieved good results.
- Overall, Betonmast achieved a good result for the quarter. The units Betonmast Oslo, Romerike, Buskerud-Vestfold, Trøndelag, Asker og Bærum and Østfold delivered very good results in the quarter. Betonmast Røsand delivered a good result for the quarter. Since 2022, Betonmast Sweden has become part of the Swedish business area, and the comparison figures have been restated.
- The Property business area had low sales during the quarter, and sales contracts for 9 (135) homes were signed in the quarter, of which AF’s share was 3 (60). In 2022, sales contracts have been signed for 216 (550) homes, of which AF’s share is 89 (256). In the fourth quarter, 73 homes were handed over at Brøter Terrasse, an AF Eiendom project in Lillestrøm. In addition, AF Eiendom completed the Hasle Tre commercial property during the quarter. There were seven residential property projects in the production stage at the end of the quarter. A total of 940 units are in production, of which AF’s share is 438. The sales ratio for commenced projects is 76%.
- Energy and Environment delivered very good results in the quarter. AF's demolition business (AF Decom) demolishes and sorts different materials for recycling. AF Decom demolished and facilitated the recycling of 1,941 (6,860) tonnes of metal in the fourth quarter, and 17,629 (14,806) tonnes of metal for the year.The foundation for our environmental activities is that waste can to a large extent be reused, and thus be a valuable resource in a growing circular economy. AF's environmental centres receive contaminated material and are working to reuse as much as possible instead of it going to landfill.The recycling rate realised for contaminated material in the fourth quarter was 80.1%.AF Energy saw a high level of activity and delivered a very good result in the fourth quarter. Good operational performance in renewable energy projects and profits from the sale of an energy hub had positive impact on results.
- The Sweden business area, which includes AF's Swedish operations in civil engineering, construction, property and demolition, experienced yet another quarter with a large gap between the best and weakest performances, and the overall results were weak. There were further downward adjustments in the project estimates for the former Betonmast Sweden during the fourth quarter. Kanonaden, AF Härnösand Byggreturer, AF Prefab in Mälardalen and AF Bygg Syd reported very good results in the quarter. HMB delivered good results.
- Offshore revenue increased by 63% compared to the fourth quarter last year, and the business area delivered very good results. AF Offshore Decom reported very good profitability. A high level of production and good operational performance at the Environmental Base in Vats made a significant contribution towards solid results for the quarter. AF Offshore Decom sorted 90% of the structures for recycling in the fourth quarter, where metal is the main component. AF AeronMollier had a high level of activity and good profitability in the fourth quarter.