Van Oord books record high revenue in 2023 and saw recovery of offshore wind market

Dutch marine contractor Van Oord announced its financial figures for 2023. The year 2023 was exceptionally busy for Van Oord which resulted in strong results. Compared to 2022, revenue increased by 42%, to a new record level for Van Oord, while profitability more than doubled.

After facing challenging market conditions for over 5 years, Van Oord witnessed a clear market recovery in 2022 which continued in 2023. Climate adaptation, the energy transition and corresponding need for marine infrastructure are the drivers of this recovery, the company says.

The recovery is reflected in Van Oord’s revenue growth across both its business units. In 2023, Van Oord carried out a strategic repositioning to sharpen its focus on its core markets, which involved the consolidation of 4 separate business units – Dredging, Netherlands, Offshore Wind and Offshore – into the 2 robust business units Dredging & Infra and Offshore Energy.

Key figures

In 2023, the total revenue increased with 42% to EUR 2,866 million from EUR 2,021 million in 2022, marking a record year for the company. Net profit doubled to EUR 127 million from EUR 60 million in 2022. A strong operating cash flow enabled Van Oord to improve its net debt to EUR 152 million (2022: EUR 178 million), despite a high investment level.

The award volume was balanced between the 2 business units. The Dredging & Infra business unit grew its revenue to EUR 1,442 million (2022: EUR 1,214 million) including amongst others the Fehmarnbelt Fixed Link project and Afsluitdijk. The Offshore Energy business unit saw a recovery of the offshore wind market. The unit booked EUR 1,424 million in revenue (2022: EUR 807 million) due to the Saint-Brieuc, Hollandse Kust Noord and Sofia offshore wind projects. The conventional offshore activities were more negatively affected by a loss-making project in 2023. In 2023, we took on new projects totalling a net amount of EUR 3.0 billion, signalling a clear and strong recovery of our markets.

The total order book of EUR 4,429 million at year-end 2023 increased compared to 2022 (EUR 4,300 million) as revenue was slightly below the award volume including variations. The operational cash flow of EUR 381 million (2022: EUR 62 million) was higher than Van Oord’s investment cash flow of EUR 317 million (2022: EUR 187 million). This enabled the company to reduce net debt from EUR 178 million in 2022 to EUR 152 million in 2023. This net debt improvement was achieved despite a high investment level of EUR 316 million (compared to EUR 187 million in 2022).Equity amounted to EUR 1,075 million (2022: EUR 985 million) and solvency was 32.5% (2022: 32.4%). , which is well within the terms and conditions of Van Oord’s credit facilities. The financing cash flow amounted to EUR -84 million (2022: EUR 143 million). Leverage ratio was 0.5. The company’s return on capital employed (ROCE) of 11.4% indicates a positive trajectory towards acceptable return levels.

Van Oord’s number of employees also increased in 2023 as a result of the recovery of its markets. By the end of the year, Van Oord employed 5,766 FTEs. Over the past 3 years, our workforce has expanded by nearly 1,400 FTEs.

Looking ahead, Van Oord says it remains optimistic about its markets and expects it order book to increase further this year. The company’s margins will continue to improve barring any unforeseen events.

‘In April 2024, after more than 15 years as CEO, I am pleased to hand over this company to a new generation and entrust my cousin Govert van Oord with the leadership of Van Oord. The transition from the fourth to the fifth generation of the Van Oord family marks an important milestone in our company’s history. I would like to thank our colleagues around the world for their commitment and contribution to this successful year, and for the last 30 years in helping me to make Van Oord a successful company. After a difficult period, we have proven that with resilience and hard work, we are able to meet our clients’ expectations and return to healthy margins.’

Pieter van Oord, CEO

Read Van Oord’s fulll financial report.

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