Van Oord's 2016 profits halve, there's hope in offshore wind

Van Oord's cable-laying vessel Nexus working at a wind farm. Source: www.vanoord.com

March 21 (Renewables Now) - Dutch offshore contractor Van Oord NV saw its revenues and profits in 2016 fall due to various factors, including challenges in the dredging and offshore oil and gas markets, but it said offshore wind offers opportunities for growth.

The company’s performance was affected by the low oil prices, weaker growth in world trade, overcapacity of dredging and offshore equipment, and the completion of major projects.

Results in EUR 2016 2015
Net profits 90 million 169 million
Cash flow from operating activities 308 million 496 million
Net debt 79 million 68 million
EBITDA 333 million 406 million
Revenue 1.71 billion 2.58 billion
- of which offshore wind 394 million 715 million
- of which offshore oil & gas 130 million 242 million
- of which dredging 1.19 billion 1.62 billion
Order book 3.27 billion 2.35 billion

Offshore wind revenue fell because of the completion of the 600-MW Gemini park, Van Oord’s biggest project ever. Still, the company secured contracts for “a large number of new offshore wind projects” such as the 370-MW Norther offshore wind project in Belgium and Borssele III and IV in Dutch waters.

A consortium led by Royal Dutch Shell Plc (AMS:RDSA), and also including Van Oord, Eneco and Mitsubishi, won in December the tender to build Borssele III & IV, with a total capacity of 700 MW, with a bid of just EUR 54.50 per MWh. “Such low costs mean that offshore wind will form an increasingly important part of Northwest Europe’s low-carbon energy mix. We are proud to be playing a prominent role in making this happen,” said CEO Pieter van Oord.

Last year Van Oord secured EUR 2.64 billion in new projects, but it said many of these would be executed in 2018 or later so they will not bring revenue in the short term.

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Browse all articles from Tsvetomira Tsanova

Tsvet has been following the development of the global renewable energy industry for almost nine years. She's got a soft spot for emerging markets.

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