Van Oord's wind revenue up in 'difficult' year

NETHERLANDS: Offshore contractor Van Oord's revenue from wind power increased slightly, while its overall results fell year-on-year.

Van Oord completed the installation of 87 foundations at Ørsted’s 659MW Walney Extension in August
Van Oord completed the installation of 87 foundations at Ørsted’s 659MW Walney Extension in August

The Dutch company’s offshore wind division made €403 million last year, up from €394 million the previous year, according to its annual results.

Its overall revenue, meanwhile, fell 10.5% year-on-year from €1.71 billion to €1.53 billion, and its operating profit (Ebitda) dropped 12.9% from €333 million to €290 million.

The company reduced its net debt by 45% from €79 million to €43 million due to a positive net cash flow amounting to €36 million.

Van Oord stated the fall in revenue was due to an historic low for its dredging division (€923 million down from €1.18 billion the previous year).

CEO Pieter van Oord also noted that despite "difficult market conditions" in the oil and gas sector, the business unit’s revenue rose from €130 million to €204 million due to a "number of major projects in niche markets".

He added: "The year 2017 was dominated by the difficult market conditions in the dredging and oil and gas sectors.

"The volume of work in offshore wind was stable, and the market dynamic in the offshore wind sector will generate a lot of opportunities for years to come.

"The transition to renewable energy is taking shape and the construction of offshore wind farms is a growing market in which we have a strong reputation."

The company added that its order book for offshore wind was "almost full" and that it had "started working on major new projects".

Van Oord installed 87 foundations at Ørsted’s 659MW Walney Extension and installed 60 monopiles at E.on and Statoil’s 385MW Arkona project and completed the acquisition of engineering firm Bilfinger’s offshore wind installation business last year.

It also won contracts to install three-legged jacket foundations at ScottishPower Renewable’s 714MW East Anglia One project and to build Northland Power’s 252MW Deutsche Bucht last year.

Van Oord added that "the new Dutch government is committed to the Paris carbon reduction targets" and so the Netherlands would continue to build offshore wind farms, providing "good prospects" for the company over the next decade.

The Netherlands has targeted 4.5GW of offshore wind capacity by 2023 — the same year the government has vowed to provide 16% of its energy from renewable sources.

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