Energy Division
The division targets customers in HVAC and refrigeration markets as well as process industries such as chemicals, petrochemical industry and the oil & gas industry. Focus is on increased energy efficiency, waste heat recovery and sustainable solutions.
The Energy Division consists of four Business Units: Brazed & Fusion Bonded Heat Exchangers, Energy Separation, Gasketed Plate Heat Exchangers and Welded Heat Exchangers.
| Energy Division | ||
| Consolidated | ||
| SEK millions | 2023 | 2022 |
| Orders received | 20,414 | 17,294 |
| Order backlog 1) | 10,075 | 8,517 |
| Net sales | 19,269 | 15,074 |
| Operating income 2) | 3,927 | 2,761 |
| Adjusted EBITA 3) | 3,986 | 2,927 |
| Adjusted EBITA margin 4) | 20.7% | 19.4% |
| Depreciation | 372 | 352 |
| Amortisation | 59 | 166 |
| Investments 5) | 992 | 535 |
| Assets 1) | 19,263 | 17,330 |
| Liabilities 1) | 7,433 | 6,574 |
| Number of employees 1) | 5,902 | 5,457 |
1) At end of period. 2) Excluding comparison distortion items. 3) Alternative performance measure. 4) Adjusted EBITA/net sales. 5) Excluding new leases.
* “Process industry” consists of inorganic chemicals, metals, petrochemicals and pulp & paper and “Other” mainly consists of manufacturing and mining.
Order intake
| Order bridge | ||
| Consolidated | ||
| SEK millions/% | 2023 | 2022 |
| Order intake last year | 17,294 | 13,675 |
| Organic 1) | 13.2% | 17.0% |
| Structural 1) | 0.1% | – |
| Currency | 4.7% | 9.5% |
| Total | 18.0% | 26.5% |
| Order intake current year | 20,414 | 17,294 |
1) Change excluding currency effects.
The Energy Division reported a good growth in order intake during the year compared to last year. Demand has been very strong for energy efficiency solutions and there has been a strong interest in Alfa Laval’s solutions for clean energy and circularity, which has resulted in a growing number of orders. Order intake was strong across most geographical markets. The strongest growth was in North and Latin America and in India and the Middle East.
The largest end market, HVAC* & Refrigeration, continued to grow, but towards the end of the year the growth slowed down. The biggest growth came from products for heat pumps. There was also continued investments in data centres driving demand for products for cooling. Demand from customers in the process industries grew mainly from sectors like chemicals, metals and pulp & paper. Underlaying factors included investments in production of green hydrogen and renewable chemicals. During the year prices for oil and gas have stabilized on a level that stimulates continued investments in production. As a consequence, demand for products and services in especially gas has been strong during the year. The refinery sector is recovering from low levels and grew significantly during the year.
The aftermarket grew well in the year. A positive development was seen across most industries and geographical markets.
* Heating, Ventilation & Air Conditioning.
Net sales
| Sales bridge | ||
| Consolidated | ||
| SEK millions/% | 2023 | 2022 |
| Net sales last year | 15,074 | 12,383 |
| Organic 1) | 22.7% | 12.4% |
| Structural 1) | 0.1% | – |
| Currency | 5.0% | 9.3% |
| Total | 27.8% | 21.7% |
| Net sales current year | 19,269 | 15,074 |
1) Change excluding currency effects.
Net sales grew in almost all end markets. Aftermarket sales grew somewhat faster than capital sales. There has been capacity constraints during most parts of the year, but the ability to invoice and work through the backlog has improved during the year.
Adjusted EBITA
| Income bridge | ||
| Consolidated | ||
| SEK millions | 2023 | 2022 |
| Adjusted EBITA last year | 2,927 | 2,050 |
| Volume 1) | 1,292 | 514 |
| Mix 1) | 123 | 496 |
| Costs 1) | -411 | -251 |
| Currency | 55 | 118 |
| Adjusted EBITA current year | 3,986 | 2,927 |
1) Change excluding currency effects.
The adjusted EBITA increased compared to last year. The increased net sales had a large positive volume effect. The mix effect was positive due to a higher service share, a more profitable product mix and our ability to balance fluctuations in the commodity markets. The overhead costs increased due to increased sales activities, costs related to investments and inflationary pressure. Currency had a positive impact.