Offshore dredging and rock installation projects, heavy transport, lift and installation work, diving and ROV services in support of the development, construction, maintenance and dismantling of oil and LNG import/export facilities, offshore platforms, pipelines and cables and offshore wind farms.
(in EUR million)
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Result from JVs and associates
Operating result (EBIT)
Order book at year end
Revenue in the Offshore Energy segment was practically stable at EUR 1,233 million (2014: EUR 1,239 million), partly helped by a strong US dollar.At Subsea Contracting the substantial Ichthys Gas Export Pipeline project in Australia was completed in early 2015. In addition, projects in countries including Azerbaijan (Shah Deniz), Germany (DolWin2), the Philippines (Malampaya) and Argentina (Vega Pleyade) contributed to the revenue.
Marine Contracting, which as of 2015 comprises both the long-term Heavy Marine Transport activities and the Dockwise Transport & Installation projects, had a busy year. The most important projects were the first part of the Veja Mate offshore wind farm, the transport of the Goliat FPSO (Floating Production Storage and Offloading unit) to Norway, and the commencement of the transport and installation of modules for the Hebron and Clair Ridge projects in Canada and the United Kingdom, respectively. With an increase in the number of projects for the decommissioning of old offshore platforms the expertise of Salvage is also increasingly being used in this division.
Logistical Management concluded an exceptionally busy year with the execution of a large number of transports for the Ichthys and Wheatstone LNG projects in Australia.
At Marine Services, which as of 2015 also comprises Fairmount and the Dockwise short-term Heavy Marine Transport activities, the consequences of the deteriorated market conditions were clearly evident. There was pressure on margins and utilization levels within wet towage in particular but also for the Dockwise vessels. Contracts worth mentioning include the eight transports for the mobilization and demobilization of dredging equipment for the Suez Canal project and the transport of the Armada Intrepid FPSO from Rotterdam to Indonesia.
As a result of the low oil price and deteriorated market conditions Subsea Services activities continue to be under pressure with corresponding implications for utilization rates and earnings. This was partially offset by deploying equipment on own decommissioning, offshore wind and unexploded ordnance clearance projects in Europe.
In 2015 the Dockwise fleet achieved a utilization rate of 76% (2014: 84%). The new Dockwise vessel White Marlin, with a deadweight of 72,000 metric tons, was named and taken into service in mid-February. The N-class and fallpipe vessels saw similar utilization levels to those of the Dockwise fleet. In early 2016 the multifunctional N-class vessel Ndeavor was converted in the Netherlands from a side stone-dumping vessel to a cable laying vessel. Along with the Ndurance the ship will be deployed on projects undertaken by VBMS.
In 2015 EBITDA for the Offshore Energy segment amounted to EUR 418.4 million and the operating result was EUR 239.2 million (2014: EUR 387.8 million and EUR 236.1 million, respectively).
Given the deteriorated market conditions in the oil and gas sector the division achieved an exceptionally good result, which was even slightly higher than the previous year. Across the mix of activities the margin on balance remained at a similar level to 2014, despite strong differences in results and margins between the various activities. The segment result of Subsea and Marine Contracting was at a similar and good level as in 2014. At Marine Services the short-term focused wet towage and short-term Heavy Marine Transport activities are coming under increasing pressure and at Subsea Services in particular an important part of the demand has fallen away amid a sharp increase in competition. The contribution to the result from Logistical Management was substantially higher than in the previous year, in line with the sharply higher revenue.
The result includes our stake in the net profit of joint ventures and associated companies, mainly VBMS and Asian Lift. The contribution from these activities was EUR 7.0 million (2014: EUR 15.1 million). VBMS had a relatively quiet year, which led to a lower result than in 2014. Asian Lift in Singapore in particular had a difficult year, with declining demand and lower-than-expected utilization.
At the end of 2015 the order book, excluding our share in the order books of joint ventures and associates, stood at EUR 975 million (end-2014: EUR 1,207 million).
In 2014 EUR 1,001 million of new work was acquired on balance. In joint venture with VolkerWessels a large contract was won for the construction of the Veja Mate offshore wind farm. In addition, variation orders were agreed on a number of existing contracts and several smaller platform decommissioning contracts were acquired, as well as a wide variety of long and short-term transport contracts.