There has been a severe slowdown in the growth of the global economy including the BRICS countries and in addition, oil prices reached unprecedented lows. The conditions in which Jan De Nul Group had to deliver a strong result, were – to put it mildly – quite challenging. However, thanks to diversification, with respect to both its activities and geographically, the group more than met the expectations.
The traditional dredging market showed limited growth. In addition, the share of the free market reached a historical low decreasing to approximately 50% of the normal dredging volume. One positive was the large volume dredging for the Suez Canal project in Egypt. A total of 263 million m³ was dredged by six contractors, of which Jan De Nul Group took on 93 million m3 or 35.4%. An exceptional achievement given the operational risks and time pressure. The successful completion of this project contributes significantly to the strong results of the group in 2015. Furthermore, the group also diversified its activities to the African market with the signing of a number of major dredging contracts.
Within its civil works division, Jan De Nul Group extends its activities geographically in the Benelux and beyond to the international market. The Belgian public contracts market is currently suffering from a climate of limited investments in infrastructure. Fortunately, the civil division has a number of private projects in its portfolio, among others in the health care and residential building industry. As for the PPP market, the group is continuing the works for the highway project A11 Bruges-Knokke. At the end of 2015, we also took our first steps in the Netherlands with the award of the project for the construction of the third chamber of the Princess Beatrix lock and for broadening the Lek canal. In 2016, the Group started the construction works for a viaduct in Luxemburg, Irbich Clervaux.
The civil division of Jan De Nul Group is also active outside of Europe, delivering integrated projects in cooperation with the dredging division, including the construction of quays in Ghana (Takoradi) and for PSA (Port of Singapore Authority) in Panama.
In 2015, the environmental division successfully maintained its market share in Belgium, supported by further growth of PSR Brownfield Developers. Furthermore, important steps were taken abroad with projects in Sweden and Norway. In response to the growing sediment treatment market, we opened a new soil and sediment treatment centre in France near Toulon and started the construction of a new centre in Belgium (Liège).
The gas and oil-related offshore market felt the pressure of a shrinking market. However the implementation of a Jan De Nul Group diversification policy with the delivery of the cable-laying vessel Isaac Newton and the acquisition of the jack-up vessel Vole au vent for the installation of wind turbines has generated overal growth in our Offshore Services. With these steps, Jan De Nul is gaining a foothold within the renewable energy market, stimulated by the climate conference of Paris and the 20-20-20 objectives of the European Union.
Growing turnover and record EBITDA
Compared to 2014, the turnover increased by almost 10% to 2,244 million Euro, thus exceeding for the fifth year in a row the 2 billion Euro mark. This increase in turnover is largely the result of the successful delivery of a number of major projects: the construction of the Suez Canal in Egypt, port extension works in Ghana (Takoradi), the development of a port terminal in Panama, the extension of the Brisbane airport in Australia and the construction of a port for an oil refinery in Nigeria. In addition the EBITDA ratio showed a significant increase and reached the record amount of 632 million Euro. Expressed as a percentage of the turnover, the EBITDA thus increased to 28%, which is well above the company’s objective of 20%-25%. Parallel with this, the net profit increased to 265 million Euro.
In 2015, Jan De Nul Group generated its turnover for 72% from its dredging and offshore activities, for 25% from its civil activities and for 3% from its environmental activities.
From a geographical perspective, Jan De Nul Group realised in 2015, as in earlier years, about 1/3rd of its turnover in Europe. 2015 was a very good year for us on the developing African market with projects in, among others, Egypt, Nigeria, Ghana, Ivory Coast and Morocco so that Africa’s share in the group’s turnover increased from 9% in 2014 to 24% in 2015.