Damen Shipyards Group publishes annual report for 2023

2023 was a positive year for the largest shipbuilding group in the Netherlands, Damen Shipyards Group. It had the highest revenue ever for the second year in a row and the largest order book for the third consecutive year. Revenue passed the 3 billion euro mark for the first time. The order book rose from 8.8 billion to 11.3 billion euros. EBITDA ended at 157 million euros (2022: 85 million). The net result rose from 15 to 43 million euros.

Unfortunately, even though Damen is doing well overall, there are still business units facing exceptionally challenging conditions. “I am thinking above all of our Ukrainian colleagues. Every day, they are still suffering the terrible consequences of the war in their homeland, even though we have moved our branches,” explains CEO Arnout Damen. “Thanks to our Damen Support Foundation, we are helping them, as well as their families and friends. It is heartening to see the successes of the foundation, in part because of donations from colleagues and suppliers. This collective approach demonstrates the strength of the family culture at our company and the positive impact it has.”

From dry dock to expedition yacht

Once again, the number of repair orders increased slightly: from 1,123 to approximately 1,200. The number of completed vessels was in line with last year: close to one hundred. They ranged from twelve Combi Freighter 3850 coastal freighters, a second locally built patrol vessel for the South African navy and the first 75-meter Yacht Support vessel, to a large dry dock for Djibouti, three cutter suction dredgers for Mexico and seven LNG-powered inland vessels (via our subsidiary Concordia Damen). The 58-meter expedition yacht Pink Shadow and many working vessels and tugs also found their way to their new owners last year, including, for example, ASD tugs for Multraship of Terneuzen and Muller Dordrecht.

Damen was also very active in the field of ‘refits’ in 2023. For instance, the complex mid-life upgrade of H.M.S. Johan de Witt for the Dutch Royal Navy was completed. At Damen Maaskant in Stellendam, the trawler Scintilla Maris was converted into an exploration yacht and there was a ‘green retrofit’ of shellfish dredger YE-118 Noordland, with one of the two diesel engines being replaced with an electric motor.

E3 label

Arnout Damen: “We are seeing how, in an increasing proportion of our new builds, as well as refits, sustainability is an important factor. That’s a good development. By 2030, we want half the solutions we sell to have our E3 label: Environmentally Friendly, Efficient in Operation, and Economically Viable. The most striking change in this area in 2023 was the introduction of a wide range of sustainable products and solutions in offshore, such as the all-electric Multi Cat workboat.”

So our order book includes more and more ‘green’ ships. For example, the Port of Antwerp-Bruges ordered an all-electric harbor tug (RSD-E) in 2023. This will make Antwerp-Bruges the first European port with an all-electric tug with 70 tons of bollard pull in its fleet. That is one reason the order book increased by more than 25 percent last year.

Six NATO navies

Another important element in this growth was the order from the Belgian and Dutch navies for the construction of four ASW frigates. Arnout Damen continues: “We are also very proud of the order for a multi-purpose vessel (drone carrier) for the Portuguese navy. It means that we are currently building, or have recently delivered, ships for six NATO navies.”

“I would also like to mention offshore wind. This is a strong growth market in Europe, the USA, and Southeast Asia. In this specific area, we have secured quite a lot of contracts (for crew transfer vessels (CTVs) and (commissioning) service operation vessels (C)SOVs)), but we are also seeing this segment generating strong demand for other workboats such as our Multi Cats and Shoalbusters. This market is also expected to continue generating significant amounts of work for our repair yards as a result of conversions, upgrades, and mobilization projects.”

Methanol

“In addition, I would like to draw attention to the segment we call ‘Harbour and Terminal’. We have been the global market leader in tugs for quite a while now. This is a relatively stable market that is becoming one of the sustainability front runners. A gradual shift to low- or zero-emission tugs has started. We are well positioned with the introduction and stock building of electrical power tugs and we have started the development of the first methanol tug. I therefore see ample opportunities to further expand our position.”

Refinancing

The successful refinancing of Damen Shipyards for the next three years led to a delay in the publication of the 2023 figures. “But with a very positive outcome. In addition to our existing and loyal financial partners, several leading national and international financial institutions have come on board to join us in investing in, and building on, our ambitions and those of our clients.”

Thanks in part to that confidence, then, Damen is looking to the future with optimism. “In many markets where we operate, demand is strong and interest in sustainable ships is increasing. The lights for the future are on green.”