Van Oord Reports 30% Higher Profit
Van Oord had a better year in 2013 than in 2012. The year closed with an almost equal turnover of EUR 1,641 million (2012: EUR 1,676 million).
At EUR 130 million, the net profit was considerably higher than in 2012 (EUR 98 million), and the company’s order portfolio was similar to the previous year. The net profit was positively affected by the settlement of a number of outstanding claims in Dubai from 2005-2008. Higher operating revenues considerably decreased the net debt.
The Offshore Wind division recorded limited turnover in 2013. The year was dominated by preparations for two major projects, Luchterduinen and Gemini. The Luchterduinen wind farm is being constructed 23 km off the Dutch North Sea coast for energy company Eneco.
2013 was a key year for the Gemini project, a 600 MW wind farm that will be constructed 60 km north of the West Frisian island of Schiermonnikoog. New shareholders with responsibility for financing have taken over the project from the developer. Gemini is a socalled non-recourse construction finance. The construction contract is executed by Van Oord and Siemens. ‘We will own 10% of the project’s equity capital’, says Pieter van Oord. ‘We expect the project to reach financial close in April. Construction will proceed in 2015 and 2016.’
Prospects for 2014
‘The global economy will make a cautious recovery in 2014’, predicts Peter van Oord. ‘Growth in ‘emerging economies’ is expected to slow. This will lead to major regional differences in growth and market opportunities. With oil prices remaining high, we are optimistic about growth opportunities for our Offshore (oil & gas) business unit. The Dutch energy transition agreement and plans by other European countries to build offshore wind farms mean we can expect growth in our Offshore Wind Projects business unit. All in all, then, we anticipate considerable growth for the company in 2014. One ongoing point of concern is finding enough technically skilled employees. Our low net debt and healthy cash flow mean that we will have enough financial leeway in 2014 to take a number of investment decisions.’
Press release, March 12, 2014; Image: van oord