7 Apr 2023

Damen revenue reaches 2.5 billion euros for the first time

In 2022, Damen Shipyards Group’s revenue reached 2.5 billion euros for the first time.

Rick van de Weg

In 2022, Damen Shipyards Group’s revenue reached 2.5 billion euros for the first time. This achievement was 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 euros dating from year-end 2021. EBITDA increased slightly to approximately 85 million euros (81.5 million in 2021); the net profit rose from 1 to 15 million euros.

“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 Kherson 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 – the 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.”

 Steps in strategy

“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.”

 From Cape Town to Den Helder

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. Major progress was made on large orders such as four F126 frigates for the German navy and the Combat Support Ship Den Helder for the Royal Netherlands Navy. The volume of repair and conversion orders rose slightly to 1,127.

 The order book continues to be well filled thanks to strong order intake across all divisions. A striking development was the growth in the segment of vessels for 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. “But the sale of sixteen vessels of our new 3850 type also deserves a mention. The fact that these ships consume 25 percent less fuel than their conventional counterparts has certainly been a contributory factor in that success.”

 Arnout Damen: “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.”