AF Gruppen’s revenues were NOK 7,485 million (6,465 million) in Q4 and earnings before tax was NOK 614 million (388 million), which corresponds to a profit margin of 8.2% (6.0%). Revenues totalled NOK 27,025 million (22,612 million) for the year. Earnings before tax was NOK 1,447 million (1,317 million) for 2020. This corresponds to a profit margin of 5.4% (5.8%). The total order backlog was NOK 30,617 million (28,200 million) as at 31 December 2020.
AF Gruppen is in a strong financial position. Net operating cash flow was NOK -86 million (784 million) in Q4 and NOK 1,189 million (1,508 million) for the full year. As at 31 December 2020, AF Gruppen had net interest-bearing receivables of NOK 90 million (-163 million). Earnings per share for 2020 were NOK 9.29 (8.51). The Board of Directors proposes a dividend for payment of NOK 6.50 (6.00) per share for the first half of 2021.
“We achieved an excellent result in the quarter, mainly due to good project operations and solid efforts by the organisation over time. The projects deserve great credit for creating value during a period that has been particularly demanding due to strict infection control measures. At the same time, we recognise a significant potential for improvement in HSE," says Amund Tøftum, CEO of AF Gruppen.
AF imposes the same strict requirements on all its partners and suppliers as on its own employees. The goal is zero serious injuries and work-related absence. Figures from subcontractors are included in the injury statistics. The LTI rate for Q4 was 2.4 (1.5). For 2020, the LTI rate was 1.8 (1.2).
AF works in a systematic and goal-oriented manner to avoid work-related absence. Sickness absence for Q4 was 4.7% (4.4%). For 2020, sickness absence was 4.6% (3.8%), with some of the increase compared to previous periods due to the ongoing infection situation. The Covid-19 outbreak and associated restrictions creates challenges and impacts all projects, but most projects have still managed to maintain good performance during the quarter.
“Today, AF Gruppen is presenting its corporate strategy for the period up to 2024. The goal is zero serious injuries and work-related absence, combined with continued profitable growth and a position as the Nordic region's most profitable contractor. The strategy builds on AF Gruppen's established business model and ownership strategy, and defines four strategic initiatives for the period: Disciplines and management, customers and suppliers, climate and the environment as well as innovation.
The new group strategy stakes out a common path for the organisation. AF Gruppen will be a safe, eco-friendly, innovative and profitable contractor. Strong entrepreneurial spirit and drive will continue to characterise the business and create a foundation for delivering profitable growth over time,” says Tøftum.