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DEME, a leading player in the offshore energy and dredging sectors, has reported a remarkable performance for the first half of 2024. With key financial metrics showing significant improvement, the company has demonstrated robust growth and solid operational efficiency across its segments. Here’s a closer look at DEME's financial highlights and what the future holds.
DEME’s turnover surged to €1.9 billion in the first half of 2024, marking a 30% increase year-over-year. This impressive growth reflects solid performance across all its contracting segments. The Offshore Energy segment, in particular, experienced a notable 37% revenue increase, driven by high demand and expanded fleet capacity. The Dredging & Infra segment also contributed to this growth with successful maintenance and capital dredging projects worldwide.
The company’s EBITDA reached €345 million, representing 18.0% of turnover. This is a significant improvement from the €222 million EBITDA (15.0% margin) reported in the first half of 2023. The strong gains in EBITDA were primarily driven by exceptional performance in the Offshore Energy and Dredging & Infra segments. As a result, EBIT rose to €150 million, or 7.8% of turnover, up from €57 million (3.9%) in the same period last year.
Net profit saw a substantial increase, climbing to €141 million from €30 million in the first half of 2023. This improvement was largely due to stronger profit performance and favorable financial results.
DEME's capital expenditure for the first half of 2024 totaled €167 million, down from €216 million in the same period last year. The investments were focused on expanding the company's fleet, particularly in the Offshore Energy segment, and capitalized maintenance.
A standout achievement was the strong free cash flow generation, which amounted to €278 million compared to a negative €178 million in the first half of 2023. This dramatic turnaround, a €456 million improvement, was driven by increased profitability, favorable working capital impacts, and reduced investment levels. As a result, DEME’s net financial debt was halved to €352 million from €715 million a year ago. The net financial debt-to-EBITDA ratio improved significantly to 0.5 from 1.4, and total cash increased to €509 million from €309 million.
Looking ahead, DEME’s CEO, Luc Vandenbulcke, expressed confidence in the company’s strategic positioning. He highlighted the company's ability to drive the energy transition, tackle environmental challenges, and ensure marine trade reliability. The company is poised to continue delivering strong, sustainable, and profitable outcomes.
DEME has revised its full-year revenue growth guidance to approximately 20%, reflecting the strong first-half performance and progress ahead of schedule. The company also expects an EBITDA margin similar to 2023. Capital expenditure estimates for the year remain between €300 and €350 million. For the coming years, DEME anticipates maintaining a turnover level comparable to 2024, with an EBITDA margin projected to range between 16% and 20%.
Check the full article here- https://www.deme-group.com/news/2024-half-year-results-2024