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Annual report 2023

Letter of the CEO and Chairman

 

2023 demonstrates that DEME is firmly on track. The year was defined by geographic expansion, new vessels, significant growth, and several wins. We delivered outstanding results, generating a 24% growth in turnover and a 26% increase in EBITDA.

We accomplished so much in 2023, but that’s not to say it was easy. Why? Because we push boundaries. Just in 2023 alone, we entered the US offshore wind market and started constructing a wind farm in Taiwan – two new territories for DEME. We introduced revolutionary new vessels - ‘Viking Neptun’ and ‘Green Jade’ - and new offshore installation concepts, new technologies... We have again dared to be a pioneer while mastering the risks.

 

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We remain fully convinced of the enormous potential that offshore wind offers to achieve the green energy transition. We believe in this industry and always have done.

Luc Vandenbulcke
CEO DEME Group

Company profile

 

DEME is a world leader in the specialised domains of dredging, marine infrastructure, solutions for the offshore energy market, environmental works and concessions. We can build on almost 150 years of knowhow and experience, having embraced a pioneering approach throughout our history, being a front runner in innovation and new technologies.

While DEME’s roots are in Belgium, the company has established a strong presence across all the seas and continents worldwide. Our vision is to contribute to a sustainable future by providing solutions to global challenges: climate change, a growing population and urbanisation, increasing maritime trade and environmental issues. With a team of over 5,300 skilled professionals and a fleet of over 100 specialised vessels, DEME is equipped to deliver innovative solutions to help build a better, liveable world.

 

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DEME in numbers

 

  • Almost 150 years of knowhow and experience 

  • Over 5,300 highly skilled employees 

  • A fleet of 100+ vessels 

  • Active in more than 90 countries 

  • 14k MW total installed capacity 

  • Over 1200 MW contributed capacity 

Key Financials 2023

  • Orderbook
    € 7,582 m
  • Turnover
    € 3,285 m
  • CapEx
    € 399 m
  • Free Cash Flow
    € 62 m
  • EBITDA
    € 596 mln (18.2% margin)
  • EBIT
    € 241 m (7.3% margin)
  • Net profit
    € 163 m (5.0% margin)
  • Dividend
    € 2.1 / share

Highlights 2023

Securing dredging contracts across continents

DEME expands its footprint in Asia, Middle-East, Africa and Europe with several dredging and coastal protection contract awards.

‘Green Jade’ joins the fleet

Following the groundbreaking ‘Orion’, ‘Green Jade’ becomes DEME’s second vessel introducing an innovative floating installation method to the offshore wind market.

Building the world’s first energy island

DEME’s involvement in the construction of the world’s first energy island in the Belgian North Sea underscores our expertise in complex marine engineering projects.

Belgian offshore energy pioneers and EU leaders unite at North Sea Summit

The Ostend Declaration sees nine European countries pledging to transform the North Sea into the world’s largest green energy power hub.

Coastbusters spearheads sustainable coastal protection

After several years of research, the Coastbusters 2.0 project has introduced a self-growing mussel reef method as a sustainable and effective solution to coastal erosion.

Contracts for two offshore wind farms in France

Proven installation technologies developed by DEME will be deployed for the construction of the Noirmoutier and Dieppe Le Tréport offshore wind farms.

Tunnel element construction at Fehmarnbelt in full swing

The first of 89 elements for the world’s longest immersed tunnel emerged from the factory hall.

First steel in the water in the US

DEME makes history in the US energy transition by installing the first foundation at Vineyard Wind 1, the nation’s first commercial offshore wind farm.

Dredging for the port of the future in Saudi Arabia

A consortium including DEME has been selected for the second phase of transformation work for the Port of NEOM, Saudi Arabia. The new port provides access to northwest Saudi Arabia and is adjacent to the nearby Suez Canal.

Strategic cooperation advancing deep sea mineral harvesting

DEME’s deep-sea experts GSR and Transocean, a global offshore drilling leader, enter into a partnership to accelerate deep-sea mineral harvesting.

Reopening of the Condé- Pommeroeul Canal

Following a five-year construction period involving DEME, a 6-km section of the Condé-Pommeroeul Canal has reopened, representing France’s largest inland dredging project.

Strategy

 

DEME builds a better, liveable world by offering solutions at the interface of land, water and energy. We specialise in Offshore Energy, Dredging, Marine Infrastructure, Environmental projects and Concessions. We deliver these projects in a safe, sustainable and efficient way.

DEME’s leadership and growth are based on a combination of:

01. The best people

DEME has a seasoned, highly skilled and committed workforce, making the company a reliable solution provider which clients can trust.

02. The right assets

DEME has the right assets to deliver projects. Its state-of-the-art fleet and equipment enable DEME to take on the most challenging projects. We understand what is needed and combine the right set of assets to deliver our clients’ projects on time and within budget.

03. Technical leadership

Innovation and investments give DEME the competitive edge and positions the company as a front runner. For almost 150 years we have pushed boundaries to excel in the markets we serve. DEME’s unwavering commitment to break ground has propelled it to the forefront of industry trends. The company relentlessly explores cutting-edge technologies, embracing innovation to tackle the most complex marine challenges and to continue to deliver on the most demanding projects.

04. Economies of scale and scope

Today, the company is organised around optimising its operational excellence and this is set to continue. At the same time, the company wants to balance its resource allocation (capital investments and human capital development) and as a result, wants to wisely spend the available resources and invest in the right initiatives to fuel growth and further strengthen the leadership position of DEME.

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How DEME is organised

 

DEME has evolved into a global provider of sustainable marine solutions, structured into four distinct segments, each serving a specific market and operating with its own unique assets, revenue model, and growth strategies.

Offshore Energy

 

The Offshore Energy segment provides engineering and contracting services globally in the offshore renewables and non-renewables industry. These activities are carried out with a fleet of specialised offshore vessels. In offshore renewables, the segment is involved in full EPCI contracts for offshore wind farms. This includes the engineering, procurement, construction and installation of foundations, inter-array cables, export cables and substations. 

In the non-renewables industry, the segment performs landfalls and civil works,rock placement, heavy lift, umbilicals, as well as installation and decommissioning services. Furthermore, the segment also provides geoscience services and the installation of suction pile and anchors.

Dredging & Infra

 

Across the globe, DEME carries out a comprehensive range of dredging activities, including capital and maintenance dredging, land reclamation, soil improvement, port construction and coastal protection. These activities are executed with a fleet of specialised dredging vessels, various types of auxiliary vessels and earthmoving equipment. The segment also provides contracting services for marine infrastructure projects. 

This includes the engineering, design and construction of complex marine structures such as jetties, port terminals, locks and weirs, infrastructure works such as bored and immersed tunnels, foundation and marine works for bridges or other constructions in a marine or fluvial environment and civil works for harbour construction, dams and sea defences, canal construction, revetment works, quay wall construction and shore protection. 

In addition, DEME is active in the marine aggregates business, which includes the extracting, processing, storage and transport of aggregates. Finally, DEME provides maritime services for port terminals

Environmental

 

The Environmental segment focuses on innovative environmental solutions for soilremediation and brownfield redevelopment, environmental dredging, sediment treatment and water treatment. The segment primarily operates in the Benelux, France, and across other European countries on a project-by-project basis.

Concessions

 

The Concessions segment, unlike the contracting segments, invests in and develops projects in offshore wind, port infrastructure, green hydrogen and other special projects. It operates through participations in special purpose companies – greenfield and brownfield. In addition to creating economic value on its projects and generating equity returns on its investments, the company also aims to secure contracting activities for the Group in the EPC phases ofits projects. 

Under the umbrella of this segment, DEME also holds concessions of seabed areas which contain polymetallic nodules and develops a technology to collect and process these polymetallic nodules containing nickel, cobalt, manganese and copperfrom the deep ocean floor.

Sustainability strategy

 

At DEME, it is our ambition to fundamentally contribute to sustainable solutions for the global environmental, societal and economic challenges facing our world today. While addressing these challenges, we continually strive to improve the sustainability of our own operations. This has led to our two-dimensional strategy for sustainable performance – we aim to ‘Explore’ and to ‘Excel’. This strategy will help us to create sustainable value for our customers, DEME and society. 

DEME’s eight sustainability themes are linked to the 17 UN Sustainable Development Goals (SDGs). It is undeniable that the world is facing multiple global challenges that could have a serious impact on society and the environment unless we act now. With its 17 SDGs, the UN has identified its priorities for creating a better world by 2030. 

At DEME, we are fully committed to helping achieve the SDGs. These goals have helped us to understand the economic, environmental and social impact of our operations as we move towards a project portfolio with a strong sustainable focus. DEME does not contribute to all of the goals equally, instead we focus on those where we can make the most impact. We have bundled the 17 SDGs into eight sustainability themes with each of them having their own ambition.

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Demonstrating our three sustainability strategies on ‘Yellowstone’


01. Operational efficiency 

We are continuing with the modernisation and upscaling of ourfleet with the conversion of a bulk carrierinto a DP2 fallpipe vessel. The payload of the new FPV is more than double that of DEME’s existing largest vessel. On projects with long sailing distances, this not only brings great economies of scale but also fewer trips are required,resulting in substantialfuel savings. Furthermore, the long and slender hull and highly efficient propulsion make ‘Yellowstone’ a champion ofreduced fuel consumption per km.

02. Technical efficiency 

The vessel will have a hybrid power plant, consisting of a smart power management system and a battery pack, which stands by as a power and energy reserve, allowing the FPV to keep only well loaded engines running, making it possible to achieve 10-15% in fuel savings, especially in DP mode. As well as this, it will be equipped with a waste heat recovery system.

03. Fuel shift 

‘Yellowstone’ will be the first vessel in the fleet prepared for(green) methanol. The first pilots willrun during the course of 2024.

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