Offshore wind projects helped swell Van Oord’s order book by almost €2.64bn in 2016, up from €1.71bn in 2015, but overall company results continued to be impacted by challenges in the oil and gas market.
Last year, the Dutch company was part of a consortium that won the right to develop the 680 Borssele 3&4 offshore wind farm in the Netherlands and was chosen as balance of plant contractor for the 370MW Norther project off the coast of Belgium.
“The expanding offshore wind industry and worsening market conditions in the oil and gas sector led us to transfer a large number of employees to our offshore wind projects division,” Van Oord said.
The increased orders will not, however, contribute to the company’s revenue in the short term as most will be executed in 2018 or beyond. Therefore, Van Oord expects 2017 to be a “challenging” year.
Offshore wind revenue declined in 2016 to €394m from €715m the previous year, mainly because of the completion of the 600MW Gemini project, the company said.
The company is upgrading heavy-lift installation vessel Svanen to install monopiles of more than 2000 tonnes, while Aeolus will be enlarged and soon be able to lift up to 1600 tonnes.
Overall revenue fell to €1.71bn last year from €2.58bn in 2015, while net profit slipped to €90m down from €169m in 2015.
Van Oord chief executive Pieter van Oord said: “After two years of explosive growth, 2016 was a year of dwindling revenue and declining profits.
“Worsening conditions in the dredging and offshore oil and gas markets put revenue and margins under pressure.
“Market conditions in the maritime sector were extremely difficult in 2016.”
Image: Van Oord
