AF Gruppen's order volume grew and the company delivered a good
result for Q1. Orders in hand are record high and the company's
financial position is strong.
Turnover in Q1 was NOK 2,662 million (2,707). Earnings before tax
were NOK 142 million (186 million) in Q1, corresponding to a profit
margin of 5.4 per cent (6.9 per cent) for the quarter.
AF Gruppen's order backlog as at 31/03/2017 was NOK 15,984 million
(10,623 million). Net operating cash flow was NOK 415 million (152
million) in the 1st quarter.
AF imposes the same strict requirements to safety 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 1th quarter was 1.1 (2.1). Total sickness absence
for Q1 was 3.5 % (4.3 %).
AF Gruppen has a strong financial position, and the group had net
interest-bearing receivables of NOK 1,063 million (705 million) as
at 31/03/2017.
The agreement to acquire 70 per cent of the shares in Kanonaden
Entreprenad AB was concluded on 9 February 2017. Kanonaden
Entreprenad AB and its subsidiaries reported revenues of SEK 708
million in 2016 and had 188 employees.
"AF Gruppen reports good earnings for Q1. An increased contract
volume and numerous interesting contracts from existing and new
customers has resulted in a record high order backlog.
A milestone in the quarter was the start of Norway's largest
construction project E18 Tvedestrand-Arendal. As the first project
under the auspices of Nye Veier, the project will be closely
monitored, not least locally. After a fast mass-mobilization of both
the project organization and equipment, the construction work is
fully operative.
Activity is also at a peak at AF Miljøbase Vats near Haugesund. The
facility specializes in sorting waste from decommissioned offshore
installations and is proof that environmental and safe disposal of
old installations can be carried out industrially and efficiently.
Our strong financial position allows us to distribute a dividend to
our shareholders while also strengthening our positions through
acquisitions. With the acquisition of Kanonaden Entreprenad, AF's
strategy in Sweden is materializing. The acquisition proves that our
model of local co-ownership is attractive for well run and
profitable businesses.
Our team comprises skilled project teams and associates who want to
succeed along with the customers," says CEO Morten Grongstad of AF
Gruppen.
For further information, contact:
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