Skip to main content

AI assistant

Sign in to chat with this filing

The assistant answers questions, extracts KPIs, and summarises risk factors directly from the filing text.

Sign up Log in

AF Gruppen Interim / Quarterly Report 2016

Feb 14, 2017

3522_rns_2017-02-14_f40ed713-8a50-45ac-922a-995db5772d09.pdf

Interim / Quarterly Report

Open in viewer

Opens in your device viewer

February 14th 2017

Q4 2016 AF Gruppen ASA

Highlights

Solid margins and strong order intake

  • Very good overall margins in AF
  • Revenues: NOK 2,892 million (3,509) in Q4 vs. NOK 11,876 million (12,398) in 2016.
  • EBT: NOK 340 million (382) in Q4 vs. NOK 1,040 million (1,004) in 2016.
  • EBT margin: 11.8 % (10.9 %) in Q4 vs. 8.8 % (8.1 %) in 2016.
  • Historically high order intake in Q4. Order backlog stands at NOK 15 332 million (11 183)
  • Solid financial position: Net interest bearing receivables of NOK 606 million (593)
  • Dividend proposal for 1st half-year 2017 of NOK 5.00 (5.00).

Safety

Lost-time injury frequency (LTIF)

Number lost-time injuries per million hours worked. Measuring of LTIF also includes injuries by subcontractor employees.

Total recordable injury frequency (TRIF)

Number of lost-time injuries, injuries involving substitute work and medical treatment injuries per million hours worked. Measuring of TRIF also includes injuries by subcontractor employees.

Reported unwanted incident frequency (RUIF)

Number of reported unwanted incidents per man-year.

Revenues

Q4 revenues by business area:

Revenues 2016: NOK 11,876 million (12,398)

Earnings before tax

  • Very high profitability in Q4 and 2016
  • EBT Q4: NOK 340 million (382)
  • EBT % Q4: 11.8 % (10.9 %)
  • EBT 2016: NOK 1,040 million (1,004)
  • EBT % 2016: 8.8 % (8.1 %)

Return on capital employed

12 month rolling average

*AF's target is to achieve a return on capital employed above 20 %.

Cash flow statement

O
N
K
i
l
l
i
m
o
n		 Q
4
2
0
1
6		 Q
4
2
0
1
5		 2
0
1
6		 2
0
1
5
E
B
I
T		 3
2
8		 3
7
9		 1,
0
3
4		 1,
0
1
0
D
i
i
i
i
d
i
i
t
t
t
t
e
p
r
e
c
a
o
n
s,
a
m
o
r
a
o
n
a
n
m
p
a
r
m
e
n
z		 3
9		 3
3		 1
7
7		 1
4
2
C
h
i
k
i
i
l
t
t
a
n
g
e
n
n
e
w
o
r
n
g
c
a
p
a		 4
3		 3
0
4		 2
1
6
-		 7
8
9
O
/
h
d
j
i
d
t
t
t
t
e
r
a
s
m
e
n
s
a
e
s
p
a
u
x		 -1
0
4		 3
2
1
-		 1
7
3
-		 5
2
1
-
C
h
f
l
f
i
t
a
s
o
w
r
o
m
o
p
e
r
a
o
n
s		 3
0
6		 3
9
5		 8
2
2		 1,
4
1
8
N
i
t
t
t
e
n
e
s
m
e
n
s
v		 1
4		 6
2		 1
3
-		 4
7
C
h
f
l
f
i
l
i
i
i
t
t
t
a
s
o
w
r
o
m
c
a
p
a
a
c
v
e
s		 -1
6
5		 1
9
3
-		 7
5
5
-		 7
8
7
-
I
i
d
d
h
i
i
b
i
d
b
t
t
t
t
t
n
e
r
e
s
p
a
a
n
c
a
n
g
e
n
n
e
r
e
s
e
a
r
n
g
e		 -4
2		 2
3
-		 1
5
-		 3
3
2
N
d
(
i
)
i
h
d
h
i
l
t
t
e
e
c
r
e
a
s
e
n
c
r
e
a
s
e
n
c
a
s
a
n
c
a
s
e
q
u
v
a
e
n
s		 1
1
2		 2
4
2		 3 3
2
7
N
h
d
h
i
l
b
i
i
f
i
d
t
t
t
e
c
a
s
a
n
c
a
s
e
q
u
v
a
e
n
s
a
e
g
n
n
n
g
o
p
e
r
o		 3
9
5		 2
2
0		 4
9
5		 9
1
C
h
i
h
d
h
i
l
i
h
h
f
f
t
t
t
t
a
n
g
e
n
c
a
s
a
n
c
a
s
e
q
u
v
a
e
n
s
w
o
u
c
a
s
e
e
c		 -2 2
-		 7 4
-
i
f
i
N
h
d
h
l
d
d
t
t
e
c
a
s
a
n
c
a
s
e
q
a
e
n
s
e
n
o
p
e
r
o
u
v		 4
6
9		 4
5
9		 4
6
9		 4
5
9

Net interest bearing receivables

Net interest bearing receivables as of 31 December is NOK 606 million (593).

Equity ratio

Health and environment

Sick leave Source separation rate

A total of 101,519 (67,125) tonnes of waste has been sorted in the 4th quarter, and a total of 507,198 (319,225) tonnes has been sorted year-todate.

Very good results

N
O
K
i
l
l
i
m
o
n		 Q
4
2
0
1
6		 Q
4
2
0
1
5		 2
0
1
6		 2
0
1
5
R
e
e
n
e
s
v
u		 7
4
5		 1,
1
0
6		 3,
3
6
8		 3,
7
6
0
E
B
I
T		 1
9
3		 1
5
2		 4
6
1		 3
3
9
E
B
T		 1
9
7		 1
5
4		 4
7
5		 3
3
9
E
B
I
T
%		 2
5.
9
%		 1
3.
7
%		 1
3.
7
%		 9.
0
%
E
B
T
%		 2
6.
5
%		 1
4.
0
%		 1
4.
1
%		 9.
0
%
  • Good performance and very good results for AF Anlegg and Målselv Maskin & Transport in the 4th quarter and in 2016.
  • Pålplintar delivers weak results in the 4th quarter. New organisational changes have been carried out in the quarter.
  • AF Anlegg was awarded the company's largest contract ever: E18 Tvedestrand Arendal, value NOK 3,200 million.
  • Acquisition of Kanonaden Entrepenad AB closed in February 2017
  • Order backlog: NOK 5,589 million (3,402)

Environment

High activity level

O
N
K
i
l
l
i
m
o
n		 Q
4
2
0
1
6		 Q
4
2
0
1
5		 2
0
1
6		 2
0
1
5
R
e
v
e
n
u
e
s		 1
2
7		 1
6
2		 2
9
7		 6
8
7
E
B
I
T		 1
0		 1
0		 4
2		 4
5
E
B
T		 1
0		 1
0		 4
2		 4
6
E
B
I
T
%		 %
5.
7		 6.
2
%		 8
%
5.		 6.
6
%
E
B
T
%		 %
5.
7		 6.
2
%		 %
5.
7		 6.
%
7
  • High activity level and satisfactory results for AF Decom in Q4. The unit is experiencing a good supply of new projects.
  • Härnösand Byggreturer shows good profitability and delivers good Q4 and annual results.
  • High activity level and good operational performance at Rimol Miljøpark in Q4.
  • Order backlog: NOK 212 million (216)

Building

Good results and high order intake

N
O
K
i
l
l
i
m
o
n		 Q
4
2
0
1
6		 Q
4
2
0
1
5		 2
0
1
6		 2
0
1
5
R
e
v
e
n
u
e
s		 1,
8
3
6		 1,
8
9
8		 6,
6
8
8		 6,
6
7
8
E
B
I
T		 1
5
7		 1
2
8		 4
8
5		 4
7
9
E
B
T		 1
6
0		 1
3
3		 4
9
8		 4
8
5
E
B
I
T
%		 8.
5
%		 6.
8
%		 7.
3
%		 7.
2
%
E
B
T
%		 8.
7
%		 7.
0
%		 7.
4
%		 7.
3
%
  • AF Bygg Oslo, AF Byggfornyelse, LAB and the companies in Strøm Gundersen all deliver very good Q4 results.
  • AF Bygg Østfold delivers good results. AF Bygg Sverige delivers satisfactory results.
  • AF Nybygg established as new business unit in Q4. The unit will target public and residential projects in the greater Oslo area.
  • AF in exclusive negotiations with Oslo S Utvikling on the development of Bispevika in Oslo.
  • Order backlog: NOK 8,467 (5,947)

Property

High activity level and very good sales

N
O
K
i
l
l
i
m
o
n		 Q
4
2
0
1
6		 Q
5
4
2
0
1		 2
0
1
6		 5
2
0
1
R
e
e
n
e
s
v
u		 1
0		 5 4
8		 2
5
E
B
I
T		 1
0		 5
4		 4
4		 6
9
E
B
T		 8 5
0		 3
0		 5
7
E
B
I
T
%		 1
0
2.
3
%		 1,
1
9
4.
6
%		 9
2.
0
%		 2
7
6.
8
%
E
B
T
%		 7
5.
1
%		 1,
1
1
7.
8
%		 6
2.
4
%		 2
3
0.
5
%
  • 174 (80) apartments were sold in Q4. AF's share is 105 (34). 688 (438) apartments sold in 2016. AF's share is 316 (178).
  • Eight housing projects with 1,006 apartments in the production phase (AF's share 456).
  • Land and development rights in progress: 2,054 (2,367) residential units. AF's share is 848 (997)
  • AF has 107,310 (122,717) m2 gross area of urban premises under development. AF's share is 51,213 (59,272).

Energy

Good operational performance and good results

N
O
K
i
l
l
i
m
o
n		 Q
4
2
0
1
6		 Q
5
4
2
0
1		 2
0
1
6		 5
2
0
1
R
e
e
n
e
s
v
u		 5
9		 5
7		 1
7
7		 2
2
5
E
B
I
T		 7 6 1
8		 1
9
E
B
T		 7 7 1
6		 2
1
E
B
I
T
%		 1
2.
8
%		 9.
6
%		 1
0.
0
%		 8.
3
%
E
B
T
%		 1
2.
8
%		 1
2.
2
%		 8.
9
%		 9.
4
%
  • Good operational performance for AF Energi & Miljøteknikk in ongoing projects. The unit delivers good Q4 results.
  • Stable demand for energy services. The unit has a high volume of tender calculations and a slowly rising order backlog
  • Order backlog: NOK 108 million (90)

Offshore

Good results and high tender activity

O
N
K
i
l
l
i
m
o
n		 Q
4
2
0
1
6		 Q
4
2
0
1
5		 2
0
1
6		 2
0
1
5
R
e
v
e
n
u
e
s		 2
1
1		 1
9
9		 1,
0
1
4		 1,
1
8
7
E
B
I
T		 9 2
1		 1
0
7		 1
0
4
E
B
T		 1
3		 1
5		 9
4		 8
3
E
B
I
T
%		 4.
3
%		 1
0.
%
7		 1
0.
%
5		 8.
%
7
E
B
T
%		 6.
2
%		 7.
8
%		 9.
3
%		 7.
0
%
  • Very high tender activity and many tenders out for AF Offshore Decom. No offshore campaign for AF Offshore Decom in Q4, but the unit still delivers good Q4 results.
  • AF Offshore AeronMollier has succeeded in adapting its operations to more demanding market conditions. The unit delivers positive results for Q4 and for 2016. The unit has a high activity level at the Johan Sverdrup project
  • Order backlog: NOK 550 million (1,182)

Order backlog

Q1 Q2 Q3 Q4

Order backlog

Order backlog per business area

The Norwegian civil engineering market

NOK 90 billion in annual infrastructure investments 2014 - 2023

Kilde: Nasjonal Transportplan, Studie fra Norsk Vann, SSB, NVE, Statnett

Market characteristics:

  • Stable high investment level going forward
  • Contracts are getting bigger
  • More players and tough competition
  • New bidding processes and various contract forms:
  • Engineering, procurement and construction (EPC)
  • Best value procurement (BVP)
  • Public Private Partnership (PPP)

  • Client segments:

  • Follo line

  • Inter City
  • Ringerike line

Our market approach

  • A large and mobile civil engineering organisation that focuses on the large and complex projects throughout Norway
  • With the increasing activity in the greater Oslo area, Northern Norway and Western Norway we also see a need for a strong regional presence
  • Target areas:
  • Road construction
  • Tunnels: new building and maintenance
  • Power and energy
  • Oil and gas facilities
  • Initiatives in the market in and around the large cities in Southern Sweden
  • Niche markets:
    • Concrete work
    • Water and sewerage plants
    • Groundwork and foundation work
    • Rock blasting

Effective units

Our companies: Effect:

Competense within large projects

Local knowledge

Professional and technical expertise

Internal working partnerships

Good results over time

Civil Engineering in AF performing well over time

Success factors have been:

  • Large and complex projects over 30 years
  • Risk management
  • High technical expertise
  • Capacity to take on projects on own account
  • Building leaders and teams that performs on a high level as a group
  • HSE and quality

Curiosity and a will to seek improvements:

  • Productivity improvement
  • Technical expertise
  • New technology

County Road 32 Gimlevegen - Augestadvegen

Competitive dialogue

County Road 32 Gimlevegen - Augestadvegen

NOK 230 million excl. VAT.

The Norwegian Public Roads Administration, EPC

Challenging soil mechanics. The NPRA asked for the contractors' proposals for technical solution.

E18 Tvedestrand - Arendal

Giant EPC project

E18 Tvedestrand - Arendal

NOK 3 200 million excl. VAT

Nye Veier AS, EPC

10 bidders, 4 was pre-qualified

Bekkelaget water treatment plant

Bekkelaget water treatment plant

NOK 450 million excl. VAT

Oslo municipality VAV, principal contract

Complicated concrete and steel constructions

The scope of the work performed inside the cavern

Vamma hydro power plant

Hydro power for more than 30 years

Vamma hydro power plant

NOK 370 million excl. VAT

Hafslund Produksjon AS, Principal contract

The expanded hydro power plant will be one of Norway's biggest run of river power units with a production of 1,000 Gwh per year.

The first fully digitalized project

Summary

O
N
K
i
l
l
i
m
o
n		 Q
4
2
0
1
6		 Q
4
2
0
1
5		 2
0
1
6		 2
0
1
5
R
e
v
e
n
u
e
s		 2,
8
9
2		 3,
5
0
9		 1
1,
8
7
6		 1
2,
3
9
8
E
B
I
T		 3
2
8		 3
7
9		 1,
0
3
4		 1,
0
1
0
E
B
T		 3
4
0		 3
8
2		 1,
0
4
0		 1,
0
0
4
E
B
I
T
%		 1
1.
3
%		 1
0.
8
%		 8.
7
%		 8.
1
%
E
B
T
%		 1
1.
8
%		 1
0.
9
%		 8.
8
%		 8.
1
%
  • Good operational performance and very good results
  • Record high order backlog of NOK 15,332 million gives a good foundation for further growth
  • Strong financial position makes both acquisition and dividend possible.
  • Dividend proposal of NOK 5.00 (5.00) for the 1st halfyear.

Q1 2017: May 12th 2017

More from AF Gruppen

M&A Activity 2026
May 21
M&A Activity 2026
May 21
Director's Dealing 2026
May 19
Director's Dealing 2026
May 19
Director's Dealing 2026
May 19
Director's Dealing 2026
May 19
Notice of Dividend Amount 2026
May 15
Notice of Dividend Amount 2026
May 15
AGM Information 2026
May 13
Declaration of Voting Results & Voting Rights Announcements 2026
May 13
View all filings →