Van Oord remains positive about offshore wind after drop in 2019 revenue

Turbine installation at Deutsche Bucht OWF. © Van Oord

Van Oord recorded a revenue of 1.64 billion Euro in 2019, 12 procent less than 2018. While its business units Nederland and Offshore reported a light growth, the Dredging and Offshore wind units showed a decrease in revenue.

With 3.61 billion Euro, Van Oord’s order book remained more or less at the same level of 2018 (3.68 billion Euro). The net profit in 2019 (46 million Euro) was almost half of the profit realised in 2018 (92 million Euro).

The maritime contractor speaks of a challenging year, especially in its main market dredging. As a response to this, Van Oord is implementing the ‘Reinventing Dredging 2030’ strategy this year which should lead to a recovery of the profitability and realisation of growth.

Offshore wind
The offshore wind unit experienced a busy year in 2019, however, the projects were viewer and smaller in size of projects under construction, leading to a lower revenue (571 million Euro vs 706 million Euro in 2018) compared to 2018. A milestone in 2019 was the completion of the activities in the Belgian offshore wind farm Norther in a record time of 9 months. At the end of 2019 it was awarded its first cable installation contract in Taiwan, for the 900 MW Greater Changhua offshore wind farms. Van Oord also invested in the Deep Dig-it, a trencher that will be used this summer for the offshore connection for the Hollandse Kust Zuid wind farm.

The company remains positive about offshore wind with high tender volumes in view. At the same time the company sais that the risk profile is increasing, driven by technical and environmental challenges, price pressure, new competitors and complex supply chains.

Also, the global outbreak of the corona virus (COVID-19) creates uncertainty for Van Oord. However, market experts remain very positive about the global offshore wind market and expect required capacity to increase substantially over the next two decades the company said.

 

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