A strong 2018 prepares Semco Maritime for the future

Source: press release, 5 April 2019

In 2018, Semco worked on more than 25 offshore wind farms
In 2018, Semco worked on more than 25 offshore wind farms (photo: Semco Maritime)

Semco Maritime grew revenue and earnings in 2018 driven by a number of offshore wind projects and a significantly higher activity level for the Group’s international oil and gas business, which generated particularly strong growth in the UK and Norway. Results and order intake both surpassed expectations and form a solid foundation for continued progress in the coming years.

In 2018, revenue grew by 45% to DKK 2,041 million in a market where customers continued to focus strongly on reducing costs and displayed a growing interest in areas such as optimisation, digitalisation and efficiency improvement where Semco Maritime can assist with innovative solutions that pave the way for increasing profitability in the industry.

“We contributed to a number of large projects in 2018, working on more than 25 offshore wind farms, delivering more than 3.3 million man-hours and receiving 14 rigs at our own facilities in Esbjerg, Hanøytangen and Invergordon. Our efforts during the year boosted revenue and allowed us to more than double earnings and lay a solid foundation for the Group’s continued development,” says CEO Steen Brødbæk.

Based on the positive developments in activity level and revenue, Semco Maritime improved earnings significantly and increased EBITDA by 110% to DKK 54 million, corresponding to an EBITDA margin of 2.6%. Profit for the year increased to DKK 28 million, and Semco Maritime reduced debt and improved the equity ratio to above 22%.

“We have created a strong market position, which we will leverage in the coming years as customers’ efforts to reduce costs will continue. Competition is fierce in the oil and gas sector as well as on offshore wind projects, which are more and more often launched on market conditions with no prospect of government subsidies or grants. We have built an organisation able to switch smoothly between projects within these business areas – and that is the recipe for generating growth and strengthening profitability for our customers and Semco Maritime alike,” says Steen Brødbæk.

At end of February, Semco Maritime’s order book totalled DKK 897 million, which forms the foundation for a continued high activity level in 2019. Semco Maritime therefore expects to maintain the high 2018 revenue level and increase earnings (EBITDA) further driven by efficiency improvement initiatives and continued focus on strong project management as well as tight control of the Group’s working capital and liquidity.