AF Gruppen ASA

AF Gruppen reports high growth, varying profitability and a solid financial position


AF Gruppen recorded growth of 18% for Q3 2022. Revenues amounted to NOK 7,537 million and profit before tax amounted to NOK 263 million in the quarter.

Illustration: AF Offshore Decom
Illustration: AF Offshore Decom

AF Gruppen's revenues were NOK 7,537 million (6,358 million) in the third quarter and NOK 22,638 million (19,756 million) year to date. Profit before tax was NOK 263 million (344 million) in the third quarter and NOK 898 million (945 million) year to date. This provided a profit margin of 3.5% (5.4%) in the third quarter and 4.0% (4.8%) year to date. The order backlog was NOK 39,716 million (40,391 million) at the end of the quarter.

AF Gruppen is in a strong financial position. Cash flow from operating activities was NOK 272 million (380 million) for the third quarter of 2022. Net operating cash flow was NOK 1,498 million (1,114 million) year to date. As at 30 September 2022, AF Gruppen had net interest-bearing receivables of NOK 254 million (-26 million). Earnings per share for the quarter were NOK 1.46 (NOK 2.08). The Board of Directors has proposed a divided of
NOK 4.00 (4.00) per share for the second half of the year.

“We've had a quarter marked by varying performance. In the third quarter, the offshore business delivered solid growth and very good profitability, and in demolition, environment and energy we also recorded very good results. We have adjusted the project estimates significantly for the Swedish Betonmast units, so overall we did not deliver profitability at the AF level,” says Amund Tøftum, CEO of AF Gruppen.

AF imposes the same strict requirements on all partners and suppliers as for own employees. Figures from subcontractors are included in the injury statistics. The LTI rate for Q3 was 0.9 (0.8). So far this year, the LTI rate was 1.2 (1.1).

AF works systematically to avoid work-related absence. Sick leave for Q3 was 4.0% (4.2%). So far this year, sick leave has been 4.5% (4.6%).

“In today's market, it is important to have robust organisation, active risk management and the ability to choose the right projects. We have a strong market position and recently we have signed a number of solid contracts where we will contribute to solving important societal challenges within infrastructure, removal and transport. We are also well positioned within rehabilitation, refurbishment and extensions,” says Tøftum.


Selected highlights from the quarter:

  • Civil Engineering has high revenues, and the profit margin is good, despite high prices on energy and raw materials. AF Anlegg has three major projects in production, E6 Kristiansand vest–Mandal øst, Bergtunnlar Lovö in Stockholm and E39 Rentvannstunnel i Oslo. Målselv Maskin & Transport and Consolvo continue to deliver very good results.
  • The Construction business area has a high level of activity, and a wide variation in earnings of the units. Overall, profitability was unsatisfactory. Profitability is negatively impacted by the price development for building materials. AF Bygg Oslo, Strøm Gundersen Vestfold and Haga & Berg are distinguished by very good results in the quarter.
  • Overall, the profitability of Betonmast is unsatisfactory. Betonmast Romerike delivered a very good result in the quarter. The units Betonmast Oslo, Betonmast Trøndelag, Betonmast Asker and Bærum and Betonmast Østfold delivered good results in the quarter.
  • The Property business area had low sales in the quarter, and the reduced demand after the summer is a result of what we see as a shift in sentiment in the market. In the quarter a total of 89 (158) sales contracts were signed, of which AF's share is 34 (77) units. So far this year 210 (428) sales contracts have been signed, of which AF’s share is 88 (202) units. Rolvsrud Arena, was the project that signed the most sales contracts in the quarter. There were seven residential property projects in the production stage at the end of the quarter. A total of 793 units are in production, of which AF’s share is 369. The sales ratio for commenced projects was 83%.
  • Energy and Environment delivered a very good result in the third quarter. AF Decom, which demolishes and sorts various materials for recycling, still has somewhat low activity, but also reports very good profitability in this quarter. The AF Energy unit delivered a very good result in the third quarter. There is increased demand and good market prospects for their energy-efficient solutions for buildings and industry.
  • The Sweden business area delivered a negative result overall in the quarter, affected by adjustments to project estimates in the former Betonmast Sweden. A review of the project portfolio of these units has been carried out. The review has resulted in major downward adjustments to the profit expectations for certain projects, mainly related to increased costs, both as a result of increased material prices and own performance. Organisational changes were made in the former Betonmast Sweden during the quarter. Kanonaden and AF Härnösand Byggreturer continue to deliver very good results in the quarter. HMB performed well and delivered good results for the quarter.
  • Offshore had revenue growth of 84% compared to the 3rd quarter last year, and very good profitability also this quarter. There has been high production with good operational performance at the Environmental Base at Vats, and successful execution of the offshore campaign in the quarter. AF Offshore Decom was awarded a major removal and recycling contract for TotalEnergies EP Nederland in the quarter.



Illustration: AF Offshore Decom
Illustration: AF Offshore Decom

About AF Gruppen ASA

AF Gruppen ASA
AF Gruppen ASA
Innspurten 15
0603 Oslo

+47 22 89 11 00

AF Gruppen is a leading contracting and industrial group that was formed by an entrepreneurial spirit and execution capabilities. The group has 5,400 employees and revenue reached NOK 27 billion in 2021. AF Gruppen is listed on Oslo Stock Exchange (AFG).

We provide a broad range of services with seven operational business areas: Civil Engineering, Building, Betonmast, Property, Energy and Environment, Sweden and Offshore.

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Latest releases from AF Gruppen ASA

TotalEnergies EP Nederland and AF Offshore Decom sign major contract for the removal and recycling of installations in the North Sea13.10.2022 10:03:52 CEST | Press release

We refer to public announcement September 21st 2022. TotalEnergies and AF Offshore Decom have signed a contract for the engineering, preparation, removal, transportation, dismantling and recycling (EPRD) of 10 production platforms from the L7 field in the Dutch sector of the North Sea. The total weight of these installations is around 17.000 metric tons, and the objective is to recycle up to 98% of all materials. The scope also includes installation work and preparations for redevelopment of infrastructure for the future use for carbon capture and storage (CCS). The structures will be prepared for removal and lifted by selected, fit for purpose vessels from local supply chain and transported to the purpose-built recycling facility for oil and gas infrastructure, the AF Environmental Base Vats in Norway. This execution strategy is fulfilling our joint ambition to deliver a sustainable project that is cost and energy efficient, safe, and predictable. We are part of the circular economy a

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