Van Oord yearly profit slumps on renewables play; "climate change" to remain a core focus for CEO
Van Oord's net profit for the 2024 financial year plummeted by two thirds from €127 ($144 million) to €42.5 million as the company's big bet on offshore wind backfired spectacularly.
Revenue fell 21 per cent to €2.4 billion based on 229 delivered projects in 39 countries.
Negative growth in the dredging and infrastructure business was less pronounced, achieving €1.36 billion in revenue, down from €1.44 billion in 2023.
In the offshore energy business unit, revenue sank to €1.08 billion from €1.42 billion, which the company attributed largely to the Sofia Offshore Wind project in the United Kingdom, where CEO Govert van Oord blamed "unfavourable contract conditions and operational challenges" for substantial losses.
Van Oord didn't let the poor results deter the company's climate-centric strategy, claiming that the Sofia project is in, "every other respect [a] significant positive contribution to the energy transition and society."
"We are also increasingly confronted with the effects of climate change. It is happening and it is real," van Oord added. "Van Oord is uniquely positioned to contribute to these challenges, and we are taking responsibility by focusing on the energy transition and climate adaptation with sustainable marine solutions."
Outlook for 2025 is mixed, with revenue for the dredging and infrastructure business unit expected to be lower, according to van Oord, who claims the offshore energy unit is expected to see an increase in revenue driven by high fleet utilisation, while admitting unforeseen circumstances in an increasingly uncertain offshore wind market may affect this.
