Damen hits record revenue of €2.5 billion

Dutch shipbuilder Damen Shipyards Group posted a revenue of €2.5 billion for 2022 for the first time in the company’s history.

The shipbuilder said that the achievement was made despite the effects of the war in Ukraine, which had, and continues to have, a significant impact on business operations.

The order book matched the company record of €8.8 billion dating from year-end 2021. EBITDA increased slightly to approximately €85 million (81.5 million in 2021); the net profit rose from €1 to 15 million.

“Overall, we are happy with 2022,” says CEO Arnout Damen. “Obviously, this does not apply to the situation in Ukraine, where we have had to close our locations in Cherson and Mykolayiv. We are still deeply affected by the situation of our colleagues there and we are supporting them whenever possible.”

“We are seeing how our focus on making our vessels more sustainable is gaining traction and appreciation,” Damen continues.

“Last year, we delivered the world’s first, full-electric, harbour tug – Sparky– to the Port of Auckland in New Zealand. This RSD-E Tug 2513 was immediately voted ‘Tug of the Year’ at the International Tug & Salvage Awards 2022, and it also appeared on TIME Magazine’s Best Inventions List. Our revolutionary Fast Crew Supplier 7011 Aqua Helix was named Offshore Energy Vessel of the Year for 2022 by Offshore Support Journal.”

“Our mission is still to become the most sustainable shipbuilder in the world. So we are working actively on major innovation projects, for example in the field of methanol as a fuel, battery capacity and alternative energy storage systems on board. But we also made strong advances in other areas of our strategy last year, such as the start of the expansion of our yard in Gorinchem, the opening of our eleventh service hub, in Panama City, and the introduction of a completely new range of cutter suction dredgers.”

Despite the fact that the number of completed vessels fell to 104, in part because of the sanctions against Russia, the production value reached a record 2.5 billion euros. The figure in 2021 was still 2.4 billion euros.

The completed vessels included the first eleven vessels under a major order for LNG-powered inland vessels by Concordia Damen and a patrol vessel built by Damen Shipyards Cape Town for the South African Navy. The volume of repair and conversion orders rose slightly to 1,127.

Damen said that the order book continues to be well-filled thanks to strong order intake across all divisions, including offshore wind applications, for which five divisions received orders. These include two vessels from the new generation of ‘service operation vessels’ developed by Damen for this sector, which are partly powered by hydrogen.

“So we are looking to the future with considerable confidence. Demand remains strong in virtually every market where we operate. We expect the rising trend in terms of financial results that we began in 2020 to continue in 2023,” Damen said.

Damen operates 35 shipyards and 20 other businesses in 20 countries, with a workforce of more than 12,000 people.