Order situation
Implementation of IFRS 15 Revenue from contracts with customers entails new disclosure demands which will be presented in the Annual Report 2018. One of the disclosure demands refers to remaining performance obligations, more often called order backlog. In quarterly reports Peab has previously chosen to present information on orders received and order backlog in business areas Construction, Civil Engineering and Project Development. As of 2018 Industry will also present orders received and order backlog for product areas Asphalt, Construction System and part of Rentals. In the other product areas in Industry contracts are usually short and therefore orders received and order backlog are not presented for them. Comparable figures regarding orders received and order backlog have been recalculated for 2017.
Orders received for the first quarter 2018 amounted to SEK 12,906 million compared to SEK 12,429 million for the same period last year. The level of orders received has risen in business area Construction and Project Development but contracted in Industry. The level of orders received in business area Civil Engineering was relatively unchanged. The orders received in the first quarter 2018 are well spread geographically and there is good product diversity.
Order backlog yet to be produced at the end of the period increased to SEK 43,055 million compared to SEK 38,149 million at the end of the same period last year. Of the total order backlog, 42 percent (40) is expected to be produced after 2018 (2017). Swedish operations accounted for 84 percent (83) of the order backlog.
Orders received
| MSEK | Jan-Mar 2018 | Jan-Mar 2017 | Apr-Mar 2017/2018 | Jan-Dec 2017 | |
| Mkr | Jan-mar 2018 | Jan-mar 2017 | Apr-mar 2017/2018 | Jan-dec 2017 | |
| Construction | Bygg | 8,144 | 7,865 | 29,559 | 29,280 |
| Civil Engineering | Anläggning | 3,859 | 3,800 | 14,250 | 14,191 |
| Industry | Industri | 1,546 | 1,760 | 4,938 | 5,152 |
| Project Development | Projektutveckling | 2,061 | 1,375 | 9,182 | 8,496 |
| Eliminations | Elimineringar | -2,704 | -2,371 | -8,453 | -8,120 |
| Group | Koncernen | 12,906 | 12,429 | 49,476 | 48,999 |
Order backlog
| MSEK | 31 Mar 2018 | 31 Mar 2017 | 31 Dec 2017 | |
| Mkr | 31 mar 2018 | 31 mar 2017 | 31 dec 2017 | |
| Construction | Bygg | 28,428 | 25,716 | 26,805 |
| Civil Engineering | Anläggning | 11,889 | 10,052 | 10,832 |
| Industry | Industri | 3,563 | 3,459 | 2,533 |
| Project Development | Projektutveckling | 8,275 | 6,705 | 8,198 |
| Eliminations | Elimineringar | -9,100 | -7,783 | -8,163 |
| Group | Koncernen | 43,055 | 38,149 | 40,205 |
We received several major contracts and agreements during the first quarter, including:
- Construction of 135 apartments in Esbo. The customer is the Kojamo Group Lumo-Kodit Oy, Finland’s largest private landlord. The contract is worth around EUR 14 million.
- Construction of an elementary school in Karleby, Finland. The customer is Karleby Municipality and the contract is worth EUR 11 million.
- Construction of a new stretch of E22 between Sätaröd and Vä in the middle of Skåne. The customer is The Swedish Transport Administration and the contract is worth SEK 629 million.
- Peab is developing and building new offices in Malmö and will invest around SEK 200 million in the first stage of a total of five buildings planned for in the project The Gate. Peab’s own contract work stands for SEK 122 million in the first stage and is included in orders received for business area Construction. The order has been eliminated on Group level.
- Construction of Björknäs Retirement Home in Boden. The customer is Hemsö Norrbottenfastigheter KB and the contract is worth SEK 198 million.
- Construction of the second stage of Vuorestalo School in Tammerfors. The customer is Tammerfors Municipality and the contract is worth EUR 13 million.
- Construction of a new baggage garage, security control and hotel at Landvetter Airport in Gothenburg. The customer is Swedavia AB and the contract is worth SEK 454 million.
- Renovation and extension of a juvenile detention facility in Hässleholm. The customer is Specialfastigheter Sverige AB and the contract is worth SEK 193 million.
- Renovation of 470 apartments at Munkhöjden in Helsinki. The customer is Asunto Oy Ulvilantie 29 and the contract is worth EUR 16 million.
- Renewed responsibility for the operation and maintenance of federal roads in the operational area Dalsland. The customer is The Swedish Transport Administration and the contract is worth SEK 193 million.
- Construction of Alta Senior Housing in Northern Norway. The customer is Alta Municipality and the contract is worth NOK 591 million.
- Renovation and extension of the town hall in Uppsala. The customer is Uppsala Municipality, Förvaltningsfastigheter AB and the contract is worth SEK 840 million.