Offshore Wind Boosts James Fisher's H1 2018 Results
Offshore wind has taken one of the leading roles in James Fisher & Sons' results for the first half of 2018, as the group's Marine Support business division marked revenue growth of 21% – the highest of all James Fisher divisions – mainly powered by activities in the UK offshore wind market.
After purchasing the entire share capital of EDS HV at the end of the last year, James Fisher fully integrated the business into the group during the first half of 2018. The mother company now says the acquisition has strengthened and broadened its offering to the offshore wind sector, where its strategic goal has been to get a foothold in the emerging maintenance market.
In April 2018, James Fisher Marine Services (JFMS) signed a five-year contract to deliver Balance of Plant (BoP) Operations and Maintenance (O&M) services for London Array, currently the world’s largest operational offshore wind farm (630MW).
In 2017, project work in the UK offshore wind sector was heavily weighted towards the second half of the year, however, 2018 has seen an improved spread of work and an earlier start to the summer peak of activity, James Fisher said.
The contract to provide support services to the Galloper offshore wind farm for innogy was completed by mid-2018. The second quarter of the year also saw the commencement of work for the East Anglia One offshore wind farm for ScottishPower Renewables, which included a contract for the clearance of unexploded ordnance.
For the Galloper offshore wind farm, JFMS provided integrated marine services worth in excess of GBP 30 million, while at East Anglia One, the company is supporting the construction under a GBP 3.1 million contract.
Along with the strong performance of the Marine Support division, followed by its Specialist Technical business area, James Fisher saw growth across all divisions in the first half of 2018.
Group revenue was up by 12% and up by 14% at constant currency, due to, on average, an 8% strengthening of Sterling compared to the US Dollar. Each division grew organically in the half and the group's overall constant currency increase comprised 11% organic and 3% from businesses acquired.
Chief Executive Officer, Nick Henry, said: "We have had an encouraging first half, with particularly strong performances from our Marine Support and Specialist Technical divisions. We continue to invest in those companies with the best prospects for organic growth and to track a number of interesting acquisition prospects."