IHC Merwede Reveals Healthy Profit Margin

Press Release
Thursday, April 04, 2013
Photo: IHC Merwede

IHC Merwede has revealed a healthy net profit margin of 4.1% in 2012 and a positive sales forecast for the year ahead.

 

The company develops and builds vessels, equipment and life-cycle support services for the dredging, mining and offshore industries, which have been performing well – despite the global economic situation and the knock-on effect for the maritime industry.


In 2012, IHC Merwede reached a revenue of €895 million and a net profit of €37 million. After the exceptional years of 2010 and 2011, the revenue and profitability were lower last year. The main reason for lower profitability is the increased competition in IHC Merwede’s markets of dredging, mining and offshore. Despite this competition, it is encouraging to see that IHC Merwede has managed to keep a healthy profit margin, with profit figures expected to be on the rise again in 2013.


With sales amounting to €679 million, IHC Merwede assured itself of an encouraging order book of €1 billion – the equivalent of approximately one year’s workload, which is the company’s target. A lack of readily available finance for customers delayed many sales agreements. IHC Merwede has now bridged this gap with a definitive list of finance options on offer, thanks to the help of banking consortium and government-driven initiatives. IHC Merwede continued to invest strongly in product development, its worldwide networks, and marketing and sales capacities in 2012, and intends to pursue these in the years ahead. With regard to the company’s high-end equipment, it is developing technology on an ongoing basis to enhance its position as the technology innovator. However, it also recognises that many customers require more standardised and less expensive products in the current economic
climate.


Therefore, IHC Merwede is developing a complete new range of cost effective vessels and equipment for the more substantial medium-specification markets. In the dredging sector, the company introduced the IHC Beagle and Easydredge, while in offshore, it launched the IHC Packhorse platform supply vessel. Market developments The dredging market has been moderate in 2012. The big players in this field were hesitant to invest due to the financial crisis, but there was a healthy level of interest in smaller to mediumsized equipment from dredging companies in Asia, South America, Africa and the Middle East. For 2013, IHC Merwede expects a much more buoyant dredging market.


The mining market is now definitely showing signs of growth, with companies becoming more convinced of wet mining solutions and getting ready to invest in this type of advanced equipment. IHC Merwede’s integrated package of dredge-mining vessels and mineral processing is unique – and therefore an attractive proposition to customers. The pipelaying vessels ordered by SapuraKencana and Subsea 7 in early 2012 were also a major breakthrough in the offshore market. This is the first time that an advanced, completely integrated pipelaying vessel has been ordered from one supplier – IHC Merwede is not only building the vessel, but also developing, constructing and integrating the advanced mission equipment. With the Brazilian project booming, Petrobras will continue to invest and IHC Merwede is in a strong position to win more business in the near future.
 

Offshore wind is still a priority in the renewable energy sector thanks to government funding. IHC Merwede is now developing more sophisticated equipment in response to this demand. The company also acquired Wave Rotor technology from Ecofys in 2012, as it believes that tidal energy is a promising market for the future. Strategy IHC Merwede’s four strategic priorities remain as: internationalisation; growth; product and process development; and internal and external cooperation. These subjects have underlined the company’s business development programme during the past year and will continue into 2013. A key part of this successful strategy is the establishment of regional headquarters to rationalise its local presence and secure building capacity in partner shipyards. “There is certainly room for optimism due to an encouraging list of prospective projects and potential new orders,” says IHC Merwede’s President Govert Hamers. “IHC Merwede will continue to invest in the development of the company as a whole and aim to further increase its portfolio of products and services. “Examples of future new activities include start-up ventures and the acquisition of technology companies, as well as more sophisticated financial packages and other services. The intention is to continue to strengthen the company’s position by offering an even more integrated package to customers.”

Maritime Reporter February 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

First Subsea Achieves API 17L1 Certification for Bend Stiffener Connectors

Connector technology developer First Subsea has received APL 17LI certification for its bend stiffener connectors from the American Petroleum Institute, the company announced today.

Gulf of Mexico Sees First LNG-powered OSV

A special Offshore Supply Vessel (OSV) has been delivered to Shell for its deepwater operations in the Gulf of Mexico.   The vessel, Harvey Energy, is chartered

Bestobell Bags Hat Trick Order in China

Bestobell Marine, part of the President Engineering Group, has received its third order in the past 12 months from Hudong Zhonghua shipyard in China. The deal

Offshore

Maersk Oil Hires Ampelmann Gangway System

After having performed a walk to work (W2W) campaign in the summer of 2014, Motion Compensation Gangways (MCG) developer Ampelmann has again been awarded a contract

Lamprell Delivers Jackup Rig to Greatship

Lamprell announced it has completed construction on jackup drilling rig Greatdrill Chaaru, delivering the rig to Greatship Global Energy Services Pte. Ltd.    Greatdrill

Ensco Announces Cash Tender Offer

Ensco plc announced today that it has commenced a cash tender offer to purchase any and all of its outstanding 3.25% Senior Notes due 2016 (CUSIP No. 29358QAB5).

Finance

Stronger Panamaxes Boost Baltic Sea Freight Index

The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, made minor gains on Thursday on higher rates for the panamax and smaller vessel segments.

Egypt: Suez Canal Zone to Make Up 30-35% of Economy

Egypt expects a planned economic zone near the Suez Canal to eventually make up about a third of Egypt's economy, the country's investment minister said on Thursday.

Australia Announces Patrol Boat Tender

Tender announced for Pacific Patrol Boat Replacement Project   The Australian Government announced a Request for Tender (RFT) to replace the Pacific Patrol Boats

Marine Equipment

First Subsea Achieves API 17L1 Certification for Bend Stiffener Connectors

Connector technology developer First Subsea has received APL 17LI certification for its bend stiffener connectors from the American Petroleum Institute, the company announced today.

Maersk Oil Hires Ampelmann Gangway System

After having performed a walk to work (W2W) campaign in the summer of 2014, Motion Compensation Gangways (MCG) developer Ampelmann has again been awarded a contract

Bestobell Bags Hat Trick Order in China

Bestobell Marine, part of the President Engineering Group, has received its third order in the past 12 months from Hudong Zhonghua shipyard in China. The deal

 
 
Maritime Contracts Navigation Offshore Oil Pipelines Port Authority Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1959 sec (5 req/sec)