Earnings Release • Nov 22, 2022
Earnings Release
Open in ViewerOpens in native device viewer
DEME Group NV, Zwijndrecht, November 22, 2022, 7:00 am – CET Today DEME (Euronext: DEME.BR) announced topline metrics for the third quarter ended September 30, 2022.
Quarter-over-quarter comparison
| (in million euro) | 3Q22 | 2Q22 | 1Q22 | 4Q21 |
|---|---|---|---|---|
| Group orderbook | 5,950.4 | 5,620.0 | 5,830.4 | 5,905.2 |
Strong demand in all segments continued to fuel orderbook growth for an increase of more than 300 million euro compared to June 30, 2022. The orderbook reached a record level at quarter-end with the addition of major long-term projects in South-East Asia (amongst others in Taiwan and Australia) and Europe.
| (in million euro) | YTD22 | YTD21 | YTD22 VS YTD21 |
|---|---|---|---|
| Offshore Energy | 754.7 | 596.5 | +27% |
| Dredging & Infra | 1,097.4 | 1,064.6 | +3% |
| Environmental | 138.6 | 121.3 | +14% |
| Concessions | 0.3 | 1.2 | -75% |
| Total turnover of segments | 1,991.1 | 1,783.6 | +12% |
| Reconciliation 1 | -25.8 | -52.8 | -51% |
| Total turnover as per financial statements | 1,965.2 | 1,730.8 | +14% |
Top line grew 14% year-to-date compared to the same period last year, reflecting solid growth in both the Offshore Energy and Environmental segments.
Based on the 3Q results, DEME remains on track to achieve its outlook for the full year, which calls for a slightly higher turnover than in 2021, EBITDA similar to 2021 and net results slightly lower than a year ago.
CAPEX for the year still targeted around 500 million euro.
1The reconciliation between the segment turnover and the turnover as per financial statement refers to the turnover of joint ventures. They are consolidated according to the proportionate method in the segment reporting but according to the equity consolidation method in the financial statements.
Please find below a description of the DEME operating segments.
The Offshore Energy segment top line grew 27% year-to-date, fueled by solid project execution.
Milestones for Q3 included the completion of the XL monopile Arcadis Ost 1 project (Germany), and the drilled monopiles in solid rock for the Saint-Nazaire project (France), both of which were industry first accomplishments and illustrative for DEME's technical leadership. In addition the segment installed intake and outfall heads for the Hinkley nuclear plant (UK) and the foundations, cables and wind turbine installation works for the Kaskasi project (Germany). The segment kicked off the Dominion project in the US and is preparing to start the Vineyard Wind project (East Coast US) in Q1 2023.
During the quarter, new contract awards further boosted the orderbook with project deployments over the next several years, including sizeable project wins in Australia and Taiwan.
DEME Offshore Energy continues to expand and strengthen its organisation and fleet (amongst others an additional DP fallpipe vessel) in anticipation of future business growth.
Dredging & Infra reported a turnover of 1,097 million euro year-to-date, 3% higher than a year ago. Turnover was affected by a high number of dockings in combination with redeployments of vessels due to the Russia-Ukraine conflict to new projects in Europe, Africa and Asia.
Large ongoing projects in Infra include the first phase of the Fehmarnbelt Fixed Link project (Denmark), the start-up phase of Port-la-Nouvelle (France), as well as the Blankenburg project in the Netherlands.
Noteworthy orderbook additions in the third quarter include the new container terminal port of Gdansk (Poland) and land reclamation works at the container terminal in Sri Lanka.
The Environmental segment continued its steady growth increasing the top line 14% yearto-date. Deployments of soil remediation and water treatment projects continued in France (Condé-Pommeroeul), Belgium (Blue Gate), the Netherlands (GoWa), the UK at both on site treatment solutions and DEME treatment centres.
Orderbook also continued its steady growth with new contract wins in Norway, France and follow-on projects in Belgium.
The Concessions segment is involved in offshore concessions 'in operation', good for more than 1 gigawatt of wind energy, generating stable recurring income while building a funnel of more than 2 gigawatt projects including projects in Scotland and additional opportunities in Europe, Asia & Latin America. For dredging and infra, the segment continues to focus on projects both in the portfolio and under construction for amongst others Blankenburg (the Netherlands) and Port-La Nouvelle (France), while expanding the footprint in the port of Duqm (Oman). Long-term green hydrogen projects, including the flagship project in Oman, continue to advance.
| 27/02/2023 | Annual results 2022 |
|---|---|
| 16/05/2023 | Quarterly results Q1 2023 |
| 17/05/2023 | General Assembly |
| 29/08/2023 | Half year 2023 results |
| 22/11/2023 | Quarterly results Q3 2023 |
The information given in this press release has not been reviewed by the statutory auditor.
DEME (Euronext Brussels: DEME) is a leading contractor in the fields of offshore energy, environmental remediation, dredging and marine infrastructure. DEME also engages in concessions activities in offshore wind, marine infrastructure, green hydrogen, and deepsea mineral harvesting. The company can build on more than 145 years of experience and is a front runner in innovation and
new technologies. DEME's vision is to work towards a sustainable future by offering solutions for global challenges: a rising sea level, a growing population, the reduction of emissions, polluted rivers and soils and the scarcity of mineral resources. DEME can rely on about 5,000 highly skilled professionals and operates one of the largest and most technologically advanced fleets in the world.
www.deme-group.com
This press release may contain forward-looking information. Forward-looking statements describe expectations, plans, strategies, goals, future events or intentions. The achievement of forward-looking statements contained in this press release is subject to risks and uncertainties. Consequently, actual results or future events may differ materially from those expressed or implied by such forward-looking statements.
Should known or unknown risks or uncertainties materialise, or should our assumptions prove inaccurate, actual results could vary materially from those anticipated. DEME undertakes no obligation to publicly update or revise any forward-looking statementsprove inaccurate, actual results could vary materially from those anticipated. DEME undertakes no obligation to publicly update or revise any forward-looking statements.
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.