High activity and improved performance in Q3

15 Nov 2024 07:00 CET

AF Gruppen (AFG) recorded NOK 7,204 million revenue in the third quarter. Profit
before tax amounted to NOK 289 million. Several business areas performed
strongly, and the positive trend in safety work continued in the quarter.

AF Gruppen's revenue amounted to NOK 7,204 million (6,907 million) in the third
quarter and NOK 22,043 million (22,152 million) for the year to date. Profit
before tax amounted to NOK 289 million (103 million) for the third quarter and
NOK 496 million (408 million) for the year to date. This represents a profit
margin of 4.0% (1.5%) for the third quarter and 2.2% (1.8%) for the year to
date. The total order backlog amounted to NOK 36,442 million (41,864 million) at
the end of the quarter. Contracts worth NOK 11,727 million were reported to the
stock exchange after the end of the quarter.

AF Gruppen has a strong financial position. Cash flow from operating activities
amounted to NOK 348 million (494 million) in the third quarter of 2024. Net
operating cash flow amounted to NOK 1,137 million (697 million) for the year to
date. As of 30 September 2024, AF Gruppen had net interest-bearing debt of NOK
780 million (1,381 million). Earnings per share for the quarter were NOK 1.85
(0.43).

“AF Gruppen delivered a stable quarter, with strong performances in several
business areas. The Group’s revenue increased in the quarter, and Civil
Engineering achieved revenue growth of 40% compared with the corresponding
quarter in 2023. Energy and Environment also delivered strong results, and the
positive trend in safety work continued,” says Amund Tøftum, CEO of AF Gruppen.

AF imposes the same strict safety requirements on all its partners and suppliers
as it does on its own employees. Figures from subcontractors are included in the
injury statistics. The
LTI-1 rate for the third quarter was 0.5 (0.0). The LTI-1 rate for the year to
date is 0.5 (0.8).

AF takes a systematic and targeted approach to avoiding work-related absences.
The sickness absence rate was 3.8% (3.9%) for the third quarter. The sickness
absence rate for the year to date is 4.0% (4.1%).

“The construction industry uses a variety of input factors, with concrete being
central to all our construction and civil engineering projects. Concrete is one
of the most widely used construction materials in the world, and Norway is a
pioneer within the development of robust concrete. Over time, AF Gruppen has
built up strong specialist environments within this segment, and we are
experiencing increased demand for both expertise and capacity. A significant
effort is being made to develop increasingly eco-friendly solutions, both to cut
costs and to cut greenhouse gas emissions,” says Tøftum.


Selected highlights from the quarter:

• The Civil Engineering business area saw a high level of activity in the third
quarter with revenue growth of 40% compared with the same quarter last year. AF
Anlegg saw a high level of activity and delivered a good result for the quarter.
AF Anlegg has a solid project portfolio with several major projects in
production, and in general there is a consistently high level of activity and
good operational performance in the projects. Målselv Maskin & Transport, VSP
and Stenseth & RS reported very good profitability in the third quarter.

• The Construction business area reported revenue decrease of 12% compared with
the same quarter last year. AF Bygg Østfold, Strøm Gundersen, Haga & Berg and
ÅBF delivered very good results for the third quarter. AF Byggfornyelse
delivered a good result. The order backlog in Construction increased in the
quarter.

• Betonmast’s activity was on a par with the same quarter last year, and
profitability improved in the quarter. Betonmast Asker og Bærum delivered a very
good result for the quarter. The Betonmast Trøndelag, Røsand, Innlandet,
Buskerud-Vestfold and Østfold units delivered good results for the quarter.

• A challenging property market with high interest rates and uncertain market
sentiment continued to contribute to low sales figures for Property in the third
quarter. Sales contracts for 22 (5) homes were signed in the quarter, of which
AF’s share is 11 (2). In the third quarter, a total of 179 homes were handed
over, mainly in the Skårersletta MIDT, Bekkestua Have and Rolvsrud Arena
projects. A total of 368 units are in production, of which AF’s share amounts to
184. The sales ratio for commenced projects is 63%.

• Energy and Environment saw revenue on a par with the same quarter last year
and delivered a good result. AF Energi saw significantly increased levels of
activity compared with the same quarter last year, and high activity and good
operations in several projects ensured a good result for the third quarter. AF
Decom delivered a good result.

• The results in the Sweden business area still vary greatly. AF Prefab in
Mälardalen reported very good results in the third quarter. Kanonaden and HMB
delivered good results for the quarter. The former Betonmast Sweden companies
had negative results also this quarter.

• Offshore increased its revenue compared with the same quarter last year. Aeron
increased its level of activity significantly compared with the same quarter
last year and delivered a good result for the quarter. AF Offshore Decom, which
dismantles and facilitates the recovery of offshore installations, maintained a
level of activity on a par with the same quarter last year and 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

More information:
Access the news on Oslo Bors NewsWeb site

632321_AF Gruppen Quarterly Report Q3 2024.pdf