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 presents orders received and order backlog for product areas Asphalt, Construction System and part of Rentals as well. 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.
October- December 2018
Orders received for the fourth quarter 2018 amounted to SEK 10,451 million compared to SEK 13,039 million for the last year. The orders received are well spread geographically and there is good product diversity.
January – December 2018
Orders received for 2018 amounted to SEK 51,087 million compared to SEK 48,999 million for the last year. The level of orders received has risen in business area Construction and Civil Engineering but contracted in Project Development. Included in orders received for business area Construction is the office project Platinan in Gothenburg for Vasakronan worth SEK 2,100 million. Included in orders received for business area Civil Engineering is the extension of the west Sweden railroad system at Olskroken in Gothenburg, worth SEK 2,900 million, for the Swedish Transport Administration. There have been fewer orders received in business area Project Development as a result of fewer housing production starts. The Group’s orders received in the period are well spread geographically and there is good product diversity.
Order backlog yet to be produced at the end of the year increased to SEK 45,819 million compared to SEK 40,205 million at the end of the last year. Of the total order backlog, 33 percent (34) is expected to be produced after 2019 (2018). Swedish operations accounted for 84 percent (86) of the order backlog.
Orders received
| MSEK | Oct-Dec 2018 | Oct-Dec 2017 | Jan-Dec 2018 | Jan-Dec 2017 | |
| Mkr | Okt-dec 2018 | Okt-dec 2017 | Jan-dec 2018 | Jan-dec 2017 | |
| Construction | Bygg | 6,202 | 7,775 | 31,007 | 29,280 |
| Civil Engineering | Anläggning | 2,751 | 3,393 | 16,349 | 14,191 |
| Industry | Industri | 1,549 | 1,401 | 5,111 | 5,152 |
| Project Development | Projektutveckling | 2,102 | 2,941 | 6,681 | 8,496 |
| Eliminations | Elimineringar | -2,153 | -2,471 | -8,061 | -8,120 |
| Group | Koncernen | 10,451 | 13,039 | 51,087 | 48,999 |
Order backlog
| MSEK | 31 Dec 2018 | 31 Dec 2017 | |
| Mkr | 31 dec 2018 | 31 dec 2017 | |
| Construction | Bygg | 29,776 | 26,805 |
| Civil Engineering | Anläggning | 13,620 | 10,832 |
| Industry | Industri | 2,246 | 2,533 |
| Project Development | Projektutveckling | 7,134 | 8,198 |
| Eliminations | Elimineringar | -6,957 | -8,163 |
| Group | Koncernen | 45,819 | 40,205 |
We received several major contracts and agreements during the fourth quarter, including:
- Construction of 115 apartments in Östersund. The customer is Östersundshem and the contract is worth SEK 145 million.
- Reinforce the ground in city block Tora, which is the first stage of street work in Bromstensstaden in Spånga. The customer is the City of Stockholm and the contract is worth SEK 116 million.
- Construction of apartments and commercial space in Årnes, northeast of Oslo. The customer is Årnes Kvartalet AS and the contract is worth NOK 176 million.
- Renovation of Gudlav Bilder School in Sollefteå. The customer is Sollefteå Municipality and the contract is worth SEK 177 million.
- Renovation and expandation of Helgedal School in Kristianstad. The customer is Kristianstad Municipality and the contract is worth SEK 133 million.
- Construction of a garage for combat vehicles, a multifunctional building as well as a gym and exercise room at Tofta training camp and target range on Gotland. The customer is the Swedish Fortifications Agency and the contract is worth SEK 330 million.
- Construction of 31 apartments in Ålesund in northwestern Norway. The customer is Mostein Boligutvikling and the contract is worth NOK 109 million.
- Construction of an office and apartment building in Jyväskylä, Finland. The customers are Järvi-Suomen Asunnot Oy and Royal-House Oy and the contract is worth EUR 21 million.
- Commission to build a new section of highway 1053, Flygplatsvägen, outside Rörbäcksnäs in Malung-Sälen Municipality. The customer is the Swedish Transport Administration and the contract is worth SEK 117 million.
- Construction of a healthcare center in Hamnvik in Northern Norway. The customer is Ibestad Municipality and the contract is worth NOK 122 million.
- Construction of a new museum for Hurtigruten in Stokmarknes in Northern Norway. The customer is Vernebygg AS and the contract is worth NOK 127 million.
- Construction of a part of Service Building 57 on Malmö hospital grounds. The customer is Region Skåne and the contract is worth SEK 132 million.