SKSBF - Skanska AB (publ) (SKSBF) Q4 2023 Earnings Call Transcript
2024-02-09 16:30:20 ET
Skanska AB (publ) (SKSBF)
Q4 2023 Earnings Conference Call
February 09, 2023 04:00 AM ET
Company Participants
Antonia Junelind - SVP, IR
Anders Danielsson - President & CEO
Magnus Persson - CFO
Conference Call Participants
Stefan Andersson - Danske Bank
Graham Hunt - Jefferies
Arnaud Lehrmann - Bank of America
Gregor Kuglitsch - UBS
Nicolas Mora - Morgan Stanley
Presentation
Antonia Junelind
Good morning, and welcome to the Presentation of Skanska's Fourth Quarter and Year-end Report for 2023. I'm Antonia Junelind, Senior Vice President, Investor Relations here at Skanska. And on stage today, I have President and CEO, Anders Danielsson and Group CFO, Magnus Persson. Shortly, they will take you through a business and financial and market update. And after their initial presentation, we will have time for questions. You can ask your questions either if you are here in the room with us by raising your hand or if you are watching, you can join the telephone conference.
So with that short introduction, let's begin the presentation, Anders.
Anders Danielsson
Thank you, Antonia. And good to see you all. Before we jump into the figures, I want you to look at this picture. It's the George Washington Bridge in New York and it's one of the bridges that we have been on and off working for decades. And right now we are renovating the cables on this beautiful bridge. So let's go into the fourth quarter in 2023.
If I start with construction, it's solid performance. We had an operating margin of 4.4% in the quarter and so that is really, really strong. And the order backlog is also on a historical high level close to SEK230 billion. On the property, asset values were impacted by weak market, and a few weeks back, we communicated impairment charges of the market values of SEK2 billion in the isolated quarter.
And therefore the return in the project development is on the negative side due to that. And also the return on equity is down to 5.8%. But we have continued to have a robust financial position, very strong financial position. And we also have a proposed dividend of SEK5.5 per share to the AGM later this year. And we also managed to reduce the carbon emission further during the year. So right now we are at 60% reduction compared to the baseline year of 2015. I will go into each and every stream now.
Overall, I'll start with construction. The revenue is pretty much flat down in local currencies with 3%. We have order bookings on a healthy level, I would say strong order bookings overall SEK44 billion, which gives us an order booked to build of 103%. So we are in a healthy place, SEK230 billion as I mentioned. And I think the order backlog right now is healthy, good quality in the order backlog....
Skanska AB (publ) (SKSBF) Q4 2023 Earnings Call Transcript