Even though oil and gas prices increased during the year, the majority of 2017 was characterised by continued low activity and tough competition in the oil and gas industry. Towards the end of the year, demand from customers increased in this business area, which remains important to Semco Maritime. The hesitant market and continued price pressure in all business areas of the group entailed revenue of DKK 1,408 million in 2017 against DKK 1,598 million in 2016.
Despite the lower revenue and significant price pressure in 2017, Semco Maritime generated a positive operating result against an operating loss of DKK 127 million in 2016. This development was driven by cost adjustments completed in 2016 as well as improved project execution, which entailed a significant improvement of the gross margin to 68% from 60% in the previous year. The result of ordinary activities after tax improved by DKK 120 million to a modest loss of DKK 8 million against a loss of DKK 128 million in 2016.
“In 2017, we saw real tangible results of the hard work that has been done to adjust the business to the very dynamic market conditions, and our improved ability to execute on projects across the group generated progress. Despite continued challenging conditions, we have been able to generate a positive operating result after three unusual years. Despite the improvements in 2017 compared to recent years, the result for the year was not satisfactory, but we are well-positioned to ensure further progress in the coming years,” says CEO Steen Brødbæk.
Semco Maritime’s strategy towards 2020 still aims to ensure greater independence of the oil and gas business by strengthening the group with Semco Maritime’s products and competencies within other market segments than oil and gas – especially within Offshore Wind.
”We are intensifying our focus on Offshore Wind, and even though German auctions have postponed the installation of a lot of projects, our efforts in this business area are already generating results. We are building stronger positions in the most important global wind markets. The oil and gas business is and will continue to be an important business area, and we will continue the efforts to ensure a balancing of the group’s offering and secure a high quality level and sharp execution for all customers,” says Steen Brødbæk.
Semco Maritime expects a higher activity level in 2018 based on continued stabilization of the oil price following a long period of uncertainty and low visibility. The market for Offshore Wind is expected to grow further as wind farms at several locations will be erected with limited or no state aid. In total, the group expects to report positive results of recent years’ adjustments in the form of a higher activity level and improved results of operation in 2018.