The AF Group in good shape
Corrected segment reporting in quarterly report
Enclosed is corrected quarterly report for Q2 2012.
There are no changes to the company's total balance
The allocation of EBITDA has been corrected between
the segments Civil Engineering and Other segments In
the segment report of the business areas.
The AF Group (AFG) showed strong growth and reported
healthy earnings for Q2 2012. The focus on efficient
operations and HSE is yielding results.
The AF Group saw massive revenue growth of 47 % in
Q2, compared with last year. In addition, earnings
before tax rose 45 % in the period. Operating
revenues in Q2 were NOK 2,503 million (NOK 1,701
million) and earnings before tax were NOK 117 million
(NOK 81 million). This is equivalent to a profit
margin of 4.7 % (4.7 %).
The AF Group is seeing an increase in new orders and
has an ample order backlog. Total order backlog as at
30 June was NOK 10,100 million (NOK 9,115 million).
Return on average invested capital was 34.5 % (32.6
%) for the first six months.
The focus on HSE has resulted in fewer injuries, low
sickness absence and increased profitability. The LTI
rate for the AF Group as a whole was 0.8 in Q2 (1.3).
Total sickness absence in the quarter was 2.6 % (3.1
The AF Group is in a strong financial position. A new
three-year financing agreement was signed during the
quarter with a credit limit of NOK 1,200 million. As
at 30 June, the AF Group had net interest-bearing
liabilities of NOK 2 million (NOK -634 million).
During the quarter, the AF Group entered into an
agreement to acquire 90 % of the shares in 5D Group
AS. The 5D Group is a supplier to the offshore
industry, with emphasis on engineering, electrical
systems and instrumentation, as well as steel
"The AF Group keeps going from strength to strength.
We are in a solid financial position, providing a
firm foundation for future growth in all our business
areas. Rapid growth must not be at the expense of
HSE. It is therefore pleasing to see that our
dedicated employees are healthier than ever and that
the injury rate is constantly decreasing", says Pål
Egil Rønn, CEO of the AF Group
For further information, contact:
Pål Egil Rønn, CEO, mobile +47 909 57 713
Sverre Hærem, CFO, mobile +47 952 45 167
Wibecke Brusdal, Director Corporate Communications,
mobile +47 930 93 150