AF Gruppen — Earnings Release 2016

Aug 26, 2016

AF Gruppen reports good margins and a strong order intake

AF Gruppen reports good margins and a strong order intake

AF Gruppen (AFG) delivered very good margins in all

its business areas for the 2nd quarter. Order intake

for the quarter was NOK 4.2 billion.

AF Gruppen's revenues were NOK 3,170 million (3,490

million) in the 2nd quarter and NOK 5,877 million

(6,024 million) in the 1st half of the year. Earnings

before tax were NOK 249 million (262 million) in the

2nd quarter and NOK 435 million (397 million) in the

1st half of the year. The profit margin was 7.8 per

cent (7.5 per cent) in the 2nd quarter and 7.4 per

cent (6.6 per cent) in the 1st half of the year.

AF imposes the same strict requirements on all its

partners and suppliers as on its own employees.

Figures from the subcontractors are therefore included

in the injury statistics. The LTI rate for the 2nd

quarter was 0.7 (0.8). The LTI rate for the 1st half

of the year was 1.3 (0.4). Sickness absence for the

2nd quarter was 3.3 per cent (3.2 per cent), and so

far this year it has been 3.8 per cent (3.9 per cent).

A strong order intake during the quarter gave an order

backlog of NOK 11,626 million (11,552 million). Cash

flow from operating activities was NOK 190 million

(223 million) in the 2nd quarter and NOK 342 million

(716 million) in the 1st half of the year.

AF Gruppen has a strong financial position, and the

group had net interest-bearing receivables of NOK 300

million (94 million) as at 30 June 2016.

"I am proud of our employees who continue to

deliver solid results in all six business areas. We

have project organisations that perform well and

facilitate sound and safe operations together with our

customers, suppliers and other partners. Solid margins

for the quarter and first half of the year provide a

good foundation for the future of AF Gruppen," says

Morten Grongstad, CEO of AF Gruppen.

For further information:

Morten Grongstad, CEO, mobile +47 991 53 905

Sverre Hærem, CFO, mobile +47 952 45 167

Wibecke Brusdal, Director Corporate Communications,

mobile +47 930 93 150

www.afgruppen.no