Epiroc Says It Increased Revenue While Fostering Sustainability

The Swedish heavy equipment supplier Epiroc published its sustainability report for 2022, which revealed strong growth in received orders and an increase in post-sale services. The company highlighted the incorporation of cleaner solutions like electric units that will offer more sustainable extraction methods to its clients. 

The company reported some challenges in 2022 like the war in Ukraine, which led to deliveries in Russia being halted and several supply-chain disruptions. Epiroc said that it also experienced high demand as orders increased by 17% to a record high of over US$5 million, supported by large equipment orders and a strong aftermarket strategy. 

Epiroc increased its revenues by 11% to US$4.7 million, also a record. Similarly, operating profit reached yet another record as it reached US$1.05 million, a 22.4% increase. Operating cash flow for 2022 stood at US$534,000, supported by higher operating profit but offset by a build-up of working capital due to the strong growth and supply chain disruptions.

Epiroc reported that it put effort into innovation in 2022, resulting in benefits for the company as well as the environment. The company said that it collaborates with customers, universities and industry leaders. A partnership with the steel manufacturer SSABB to use fossil-free steel in the production of underground mining equipment was among the most important. Epiroc also reported innovations in SmartROC T35, the first ever electric surface drill rig; Boltec ABR, a fully mechanized bolt reloading safety that improves safety; V-Cutter, a cutter that revolutionizes trenching and reduces energy consumption by 40% and the Powerbit X, a drill bit with diamond-protected buttons that prolong the replacement intervals. 

According to Epiroc, the regions that represent most of its revenue was Asia-Australia with 28%, North America with 26%, Europe with 17%, Africa and the Middle East with 15% and South America with 14%. 

The company highlighted that over two-thirds of its income came from post-market solutions, which extend the lifespan of its products to reduce the use of raw materials. Similarly, Epiroc also incorporates automation and electrification into its products, which contributed to more sustainable operations.

Epiroc issued US$188.7 million in green bonds. These resources will be used to finance sustainable projects.