AF Gruppen reports record-high order backlog and good earnings
AF Gruppen continues to grow profitably with a record-high order intake and profit margin of 7.5% for the quarter. Sickness absence has at the same time never been lower.
AF Gruppen's revenues were NOK 3 347 million (3 170 million) in the 2nd quarter and NOK 6 009 million (5 877 million) for the 1st half of the year. Earnings before tax were NOK 250 million (249 million) in the 2nd quarter and NOK 393 million (435 million) for the 1st half of the year. Profit margin was 7.5% (7.8%) in the 2nd quarter and 6.5% (7.4%) for the 1st half of the year.
AF imposes the same strict safety requirements on its partners and suppliers as on its own organisation. Figures from the subcontractors are therefore included in the injury statistics. The LTI rate for the 2nd quarter was 1.4 (0.7). The LTI rate for the 1st half of 2017 was 1.2 (1.3).
Sickness absence was 2.8% (3.3%) in the 2nd quarter, and 3.2% (3.8%) for the 1st half of the year.
A strong order intake during the quarter gave an order backlog of NOK 18 928 million (11 626 million) as at 30 June 2017. Net operating cash flow was NOK 203 million (190 million) in the 2nd quarter and NOK 619 million (342 million) for the 1st half of the year.
AF Gruppen has a strong financial position, and the group had net interest-bearing receivables of NOK 698 million (300 million) as at 30 June 2017.
“AF Gruppen reported a solid quarterly result. The strong order intake and the Group’s financial standing provides a good foundation for realisation of its growth strategy towards 2020. Our record-high order backlog shows that our expertise and services are in demand by our customers.
The ability to be curious and look for opportunities is part of the AF Culture. It is our entrepreneurial spirit and execution capability that gives AF Gruppen its competitive advantage and makes us an attractive employer. During the last half of the year we have welcomed many new members to our team, and AF now has approximately 3 600 employees. The ability to communicate our core values will be decisive for maintaining a strong and clear culture and achieving profitable growth at the same time.
A key element of the AF Culture is our work with health, safety and the environment. This forms the basis of all our operations. Therefore it is inspiring to see that we both deliver solid financial results and preserve the health of our employees. The focused work on good, preventive safety and health shall be just as clear in our future creation of value”, says CEO Morten Grongstad of AF Gruppen.