Jan De Nul Group posts 2019 results
Jan De Nul Group continues to sail a steady course, combining solid financial figures with targeted investments, the company said in its release. This pays off and is reflected in an order book of 3.4 billion euro at the end of 2019.
KEY FIGURES
Turnover exceeding 2 billion euro
EBITDA amounting to 342 million euro or 17% of turnover
Net profit of 61 million euro
An exceptionally high solvency ratio of 68% thanks to a sustained policy of complete profit reinvestment
No net debt for the sixth year in a row
Stable order portfolio of 3.4 billion euro
Extensive ongoing investment programme, particularly in the offshore renewable energy industry
Renewed syndicated credit facilities amounting to 550 million euro, including a green loan of 300 million euro
ACTIVITIES IN 2019
Throughout 2019, the maritime dredging and offshore sector remains the cornerstone of Jan De Nul Group’s activities with 77% of the total turnover of the Group.
In 2019, Jan De Nul Group was active in major coastal protection projects such as in Benin, where Jan De Nul Group was responsible for the design and construction of a submerged dike to protect against coastal erosion. Furthermore, Jan De Nul Group also executed port dredging works. In India it helped to deepen and widen the access channel to the Jawaharlal Nehru Port in Mumbai. In Mauritania, the Group executed works for deepening and widening the large port in Nouadhibou for the export of iron ore. In Argentina, Jan De Nul deepened the port of Quequén to -15 metre. In Vietnam, the Group executed dredging works for the port facilities for the Long Son Petrochemicals Complex at Long Son Island and in Qatar for the widening of the access channel to Old Doha Port.
The offshore division was once again involved in the construction of several offshore wind farm projects in and outside Europe. In Belgium, Jan De Nul installed Northwester 2 and in Germany, the Trianel offshore wind farm. Outside Europe, more specifically in Taiwan, Jan De Nul Group constructed two offshore wind farm projects: Changhua and Formosa 1 Phase 2. For the contracts Northwester 2 and Formosa 1 Phase 2, Jan De Nul Group was also responsible for the subsea cable installation works. In 2019, Jan De Nul Group was awarded the Formosa 2 project. The construction of the offshore wind farm with 47 Siemens turbines of 8 MW each and a total capacity of 376 MW, will start in 2020. The installation of offshore wind turbines in the United States is in full preparation and will be carried out in 2020.
Furthermore, the offshore division executed general offshore services, amongst other things, the preparation of the shore approach in Italy and Albania for an undersea trans-Adriatic pipeline, as well as trenching and rock installation works for a pipeline for the BP Tangguh Expansion Project in Indonesia. In Hainan, China, Jan De Nul executed rock installation works to protect a power cable between the continent and Hainan Island. In Korea, Jan De Nul Group did the same for the protection of a power cable between the islands Jeju and Jindo.
With 20% of the Group’s total turnover, the civil activities remain a stable and constant part of Jan De Nul Group. The range of civil construction and maintenance projects is very diverse and includes residential buildings, school infrastructure, health care institutions, road infrastructure, viaducts, quay walls and locks. In Belgium, Jan De Nul Group contributed to the renovation of the Leopold II tunnel in Brussels. In the Netherlands, the Beatrix lock in Nieuwegein was successfully completed and in Luxembourg city, Jan De Nul Group widened and renovated the historical Pont Passerelle.
Envisan, the environmental division of Jan De Nul Group, focuses on environmental technology solutions. The environmental activities keep a stable 3% of the Group’s total turnover. To support these activities, Jan De Nul Group owns and operates six soil and sediment treatment centres in Belgium and France. As in previous years, the environmental segment works closely together with the maritime and civil activities, and in particular with the project development partner of the Group, PSR Brownfield Developers, who are specialists in the redevelopment of brownfield sites.
In the financial year 2019, Jan De Nul Group maintained its high solvency level with a ratio of 68%. The capital and reserves increased from 2,859 million euro in 2018 to 2,941 million euro in 2019, thanks to a sustained policy of complete profit reinvestment.
Since 2014, Jan De Nul Group is completely net debt-free. This is pretty unique, especially considering the group’s strong investment-DNA. Our net cash position continued to improve in 2019 and amounted to 465 million euro (376 million euro in 2018). This solid balance sheet is a major asset of Jan De Nul Group within the scope of the current economic volatility, future investments and our competitive strength.
Although the world is its market, Jan De Nul Group continues to have a strong presence in Europe: 45% of its turnover was realised across European countries. Jan De Nul’s activities, however, grew fastest in Asia and the Middle East. The share of this region in the Group’s turnover increased from 18% in 2018 to 27% in 2019. This increase is mainly due to Jan De Nul Group’s activities for the construction of the three major offshore wind farms in Taiwan. Furthermore, Jan De Nul Group was active in 2019 in America (17%), Africa (7%) and Australia (4%).
The very comprehensive and diverse expertise of Jan De Nul Group is highly appreciated by customers and is reflected in the stability and even slight increase of its order book, which amounted to 3.4 billion euro at the end of 2019 and compared to 3.3 billion euro at the end of 2018. The order book of Jan De Nul Group includes several major projects, a small selection of which is presented below:
- In Ecuador, Jan De Nul Group signed in 2018 the concession agreement for the deepening and maintenance of the 95-kilometre access channel to the port of Guayaquil. In 2019, Jan De Nul Group completed the deepening works in the existing access channel. The maintenance and operation of the channel for the remaining 24 years can now start.
- In the port of Takoradi, Ghana, Jan De Nul Group will further expand the port facilities for Ibistek. In Benin, Jan De Nul Group is building an underwater dike and replenishes beaches in order to protect the coastline. In early 2020, Jan De Nul Group completed the maintenance dredging works in the Port of Maputo, Mozambique, for the Maputo Port Development Company. Also in 2020, Jan De Nul will remain present in Mozambique, executing dredging works in Palma for the development of an LNG terminal.
- The offshore department also has a geographically well spread order book. In Denmark, Jan De Nul Group has been awarded the transport and installation of the offshore wind turbines in the Kriegers Flak Offshore Wind Farm. Furthermore, Jan De Nul Group signed its first offshore wind contract in France: it will be responsible for the transportation and installation of 80 offshore wind turbines for the Saint-Nazaire Offshore Wind Farm. The offshore installation vessel Vole au vent will set course to the United States in 2020 for the construction of the Virginia Coastal Wind Farm.
- In April 2020, Jan De Nul Group and its partner signed the contracts for the supply and installation of high-voltage cables that will connect the Dutch offshore wind farms ‘Hollandse Kust Noord’ and ‘Hollandse Kust West Alpha’ to the onshore electricity grid. The offshore installation works will be executed in 2022-2023.
- In 2019, Jan De Nul Group successfully completed the construction of the 120 MW Formosa 1 Phase 2 Offshore Wind Farm. Today, the Group is constructing its second Taiwanese offshore wind farm: the Changhua Offshore Wind Farm with an installed capacity of 109 MW. Jan De Nul Group is responsible for the design, fabrication and installation of the foundations, the installation of the wind turbines and the supply and installation of the cables. The execution will mainly take place in 2020 and will be followed by a 5-year maintenance contract.
Jan De Nul Group's third offshore wind farm in Taiwan, the Formosa 2 Offshore Wind Farm, will have 47 Siemens turbines of 8MW each and a capacity of no less than 376MW. Jan De Nul Group will act as EPCI contractor and be responsible for the design, supply and installation of jacket foundations and subsea cables. Construction work is planned to start in 2020 and the wind farm is scheduled to be operational by the end of 2021.
The Formosa 2 wind farm is located at 3.8 to 9.5 km off the coast and at 40 nautical miles from the port of Taichung, in the province Miaoli (Northwest Taiwan), next to the Formosa 1 Phase 2 wind farm, built by Jan De Nul Group in 2019. The Changhua wind farm is situated further south.
In planning Formosa 2 OWF, Jan De Nul Group will draw on its offshore wind experience gained during the current execution of the neighbouring projects Formosa 1 Phase 2 OWF and Changhua OWF. Furthermore, the Group builds on years of experience in Europe, with offshore wind projects in Belgium, England, Sweden, Denmark, Finland and Germany.
COVID-19
At the time of publication of Jan De Nul Group’s financial results, the world is facing the consequences of the COVID-19 virus. Obviously, the effects of this pandemic are not visible in the financial results of 2019. Jan De Nul Group is highly committed to warrant the safety and health of its employees worldwide, optimise its cost structure and uphold its excellent operating capital position. As already mentioned above, we’ve set up a committed Green Term Loan in 2019 to finance the major investments in vessels in the coming years. Moreover, Jan De Nul Group has an excellent balance sheet profile and an order book worth 3.4 billion euro.
