Belgium: CFE Dredging Division Reports Strong Increase in Revenue

DEME’s revenue was up sharply at €1,801 million, representing 28% growth over the €1,403 million recorded in 2009. The strong increase in revenue generated in Europe is attributable to the execution of major contracts, including the construction of the London Gateway container terminal in the United Kingdom and wind farms.

Operating profit increased 19% to €177 million, compared with €147 million in 2009. The slightly lower margin is due to the fact that some works were executed as a general contractor and therefore include supplies, and to the need to resort to renting vessels. The company’s fleet occupation rate remained high.

Due to growth in financial expense related to its on-going investment programme and higher tax expense, DEME’s net profit was €116.5 million, compared with €103 million in 2009. DEME’s order book remained high, standing at €1,935 million compared with €2,122 million at January 1, 2010. Significant orders were booked during the year in the group’s various business lines and geographical locations, confirming the relevance of its diversification strategy.

In addition, at the beginning of 2011, DEME recorded new orders totalling €500 million.

The investment programme continued as planned.

Several vessels are under construction: trailer suction hopper dredger Breughel, jack-up vessel Neptune and sea-going rock cutter dredgers Ambiorix and Amazone.

Others are under construction and already launched: fall pipe vessel Flintstone, gravel trailer Victor Horta, the Next Generation Plus megatrailer Congo River (30,000 cubic metres) as well as the cutter suction dredger Al Jarraf. These vessels will all be operational in 2011-2012.

During the year, DEME continued to apply its strategy of early involvement in innovative projects such as wave and tidal energy.

The DEME figures reported are at 100%; CFE owns 50% of DEME’s share capital.

More info: CFE

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Source: cfe, February 25, 2011