AF Gruppen: Company Market Research Report

Company Overview

• Name: AF Gruppen

• Mission: No information is available.

• Founded: No exact founding date is available, but AF Gruppen has been operational since 1994 in offshore operations.

• Founders: No information is available.

• Key People in the Company:

• Amund Tøftum: Group CEO

• Anny Øen: Group Director Finance/CFO

• Knut Ekern: Communications Director

• Peter Ek: CEO, Kanonaden Entreprenad Mälardalen AB

• Bård Frydenlund: Group Director, Sweden

• Headquarters: No specific headquarters location is provided, but AF Gruppen operates primarily in Norway and Sweden.

• Number of Employees: Approximately 6,000 across Norway, Sweden, Lithuania, and Germany.

• Revenue:

• 7,445 MSEK (Sweden)

• 30,530 MNOK (overall AF Gruppen)

• Known For: Construction and civil engineering services, including building, demolition, energy, environmental services, and offshore operations. Known for sustainable solutions in construction and energy sectors.

Products and Services

• Construction Services:

• Building: Projects ranging from housing, commercial buildings to large-scale infrastructure.

• Civil Engineering: Major infrastructure projects like road tunnels, bridges, and wind farms.

• Project Development: Development of residential, commercial, and environmental projects.

• Environmental Services: Demolition, environmental cleanup, and waste recycling across Scandinavia. High expertise in safe demolitions and recycling of building materials.

• Offshore Services:

• Offshore Decommissioning: Leading European player in the removal and recycling of offshore installations, with a recycling rate of up to 98% of platform steel.

• HVAC Services: Complete HVAC solutions for offshore facilities, land installations, rigs, and ships.

Recent Developments

New Projects and Partnerships

1. Kanonaden Entreprenad Mälardalen's Project for Svenska Kraftnät:

• Partnership with Hitachi Energy Sweden.

• Installation of up to ten new series compensation stations to modernize Sweden's transmission network, enhancing the grid's capacity for renewable energy transfer.

• Order value: Approximately SEK 3 billion (Kanonaden's stake worth SEK 900 million).

2. Energy and Environmental Initiatives:

• Increasing activities in energy projects, notably in bioenergy through the acquisition of 70% of ETA Norge shares.

• Enhancements to the electrical grid capitalization using Hitachi Energy’s high-voltage technology to improve transmission capacity by 50%.

Financial Performance

• Third Quarter 2024:

• Revenue: 7,204 MNOK

• Profit before tax: 289 MNOK, profit margin at 4.0%

• Order backlog: 36,442 MNOK

• Second Quarter 2024:

• Revenue: 7,651 MNOK

• Profit before tax: 21 MNOK, profit margin at 0.3%

• Order backlog: 38,253 MNOK

Operational Highlights

• Increased Activity in Civil Engineering:

• Significant growth in civil engineering with several large-scale ongoing projects and a 40% increase in activity noted during the third quarter.

• Offshore Challenges:

• Notable downward adjustments in profit forecasts for a specific offshore project affecting quarterly earnings.

Safety and Health

• Consistent application of high safety standards across all operations, including collaborators and subcontractors.

• Continued focus on minimizing work-related absenteeism, maintaining a low sickness absence rate.

Market Positioning and Goals

• Committed to continuous improvement in sustainability, particularly through developing efficient construction and energy solutions.

• Maintaining a strong operational presence in Scandinavia and expanding capabilities in environmentally friendly construction practices.

Conclusion

This report outlines AF Gruppen's comprehensive involvement in construction and engineering sectors across Scandinavia, highlighting recent achievements and strategic expansions, particularly in sustainable energy. Notable projects and financial performance indicate AF Gruppen's influential role and commitment to growth and sustainability within its industry.