Posted on September 2, 2024
Highlights 1H24
- Orderbook stands at 7.6 billion euro, matching the peak levels of the last four quarters
- Group turnover grew 30% year-over-year to 9 billion euro, with solid growth in all contracting segments
- EBITDA amounted to 345 million euro, or 18.0% of turnover, up from 222 million euro, or 15.0% of turnover in the first half 2023
- Net profit amounted to 141 million euro, compared to 30 million euro a year ago
- Capital expenditure amounted to 167 million euro, compared to 216 million euro for the first half in 2023
- Strong free cash flow generation in the first half of the year, amounting to 278 million euro compared to -178 million euro a year ago; resulting in a halving of net financial debt to 352 million euro from 715 million euro a year ago
Quote ofthe CEO
“I’m delighted with the remarkable performance delivered by the entire DEME team in the first half of 2024. We sustained the momentum from the latter half of 2023 and achieved very solid results that reflect high activity levels and strong operational performance in all contracting segments and across all geographies where we operate.” said Luc Vandenbulcke, CEO of DEME.
“DEME remains strategically well-positioned to drive the energy transition, to tackle environmental challenges, and to ensure reliable, open access of marine trade,” added Luc Vandenbulcke. “Driven by our strategic investments in the world’s most advanced fleet and the support of top-tier professionals, DEME is set to continue delivering robust, sustainable, and profitable outcomes. Given the strong first half results, with progress ahead of schedule and despite a challenging 2H23 comparison base, we are raising our topline guidance for the full year to approximately 20%, bringing the annual turnover to a record level.”
Executive summary
DEME delivered a strong performance for the first half of 2024. Turnover grew 30% to more than 1.9 billion euro and profitability grew compared to the first half of last year, reflecting continued effective project execution across all contracting segments. With a strong conversion of backlog into revenues and an equivalent fill rate of new orders, DEME’s orderbook remained stable the last quarters.
Revenue for the Offshore Energy segment grew 37% year-over-year, driven by continued solid demand, expanded fleet capacity and robust project execution in the UK, France, Taiwan and the US. The Dredging & Infra segment performed well on a mix of projects including maintenance and capital dredging works across the globe and continued work on major infrastructural projects in Europe. The Environmental segment advanced its long-term projects in Belgium, the Netherlands, UK and Norway.
DEME generated an EBITDA of 345 million euro, or a 55% increase compared to the first half of 2023. The EBITDA margin was 18.0%, up from 15.0% for the first half of 2023, mainly due to strong gains at the Offshore Energy and Dredging & Infra segments.
As a result of the increase in EBITDA, EBIT grew from 57 million euro for the first half in 2023, or 3.9% of turnover, to 150 million euro for the first half in 2024, equivalent to 7.8% in turnover.
The net profit for the Group was 141 million euro up from 30 million euro for the first half of 2023, mainly driven by the strong profit performance and favourable financial results.
In line with the capital expenditure budgeted for the year; investments for the first half amounted to 167 million euro compared to 216 million euro a year ago. Capital expenditure was mainly allocated to the expansion of DEME’s fleet capabilities, primarily in its Offshore Energy segment, and to capitalised maintenance investments.
Free cash flow for the first half of the year was 278 million euro, compared to a negative 178 million euro in the same period last year. This 456 million euro improvement is due to the significant increase in DEME’s profitability, positive impact of working capital and a lower investment level. Net financial debt amounted to -352 million euro, essentially half of the -715 million euro level a year ago. As a result, the net financial debt over EBITDA ratio is 0.5, compared to 1.4 a year ago1. Total cash amounted to 509 million euro compared to 309 million euro at the end of the first semester last year.
Outlook
The following statements are forward looking, and actual results may differ materially.
Building on the strong results in the first half, management has raised its turnover outlook for the full year and now anticipates revenue growth of around 20% with an EBITDA margin comparable to 2023.
CapEx estimates for the year remain unchanged, between 300 and 350 million euro.
For the next few years, management expects the topline to be in line with 2024, taking into account the current project schedules in the backlog and pipeline for new projects along with vessel capacity, with the EBITDA margin to range between 16 and 20%.
