• 2021 May 22 13:57

    Royal IHC: recovery in sight after challenging year

    In 2020 IHC' revenue declined to 737.7 million euro from 1,069.7 million in 2019. Order portfolio as of Dec 31 was 450.5 million (2019 - 689.8 million) Royal IHC achieved a negative EBITDA of EUR 199 million in 2020 (2019 -111.5 million) as expected, the IHC press release said.

    NEW STRATEGY
    The first half of 2020 was dominated by the refinancing and recapitalisation of Royal IHC. A strategy was also drawn up to focus the company on its core activities and bring the size of the organisation in line with a more realistic revenue expectation. The implementation of the transition plans and the strengthening of Royal IHC's position in the maritime sector followed in the second half of 2020.

    REALISTIC SIZE
    After determining the core activities, a start was made on selling or discontinuing the non-core activities. In addition, the organisation has become more efficient. The resultant downsizing measures aim to bring Royal IHC in line with realistic revenue expectations in terms of its size. This means that there has been a reduction of 300 jobs in The Netherlands and 300 jobs abroad. In addition, there has also been a reduction of 700 temporary workers.

    CONSEQUENCES OF COVID-19
    The COVID-19 pandemic has been a dominant factor throughout the year for both order intakes and the ability to operate safely worldwide. Thanks to a clear crisis approach, the number of infections within production was limited, but Royal IHC regrets the loss of a colleague and a limited number of other colleagues were ill for a long time with COVID-19.

    ROYAL IHC ON TRACK
    Gerben Eggink, Royal IHC CEO, says: “Royal IHC is now on track after a challenging 2020. There is maximum focus this year on successfully completing a number of large and complex projects that were contracted in 2017 and 2018.

    “Although the consequences of the COVID-19 pandemic will have an impact on the 2021 results, we still expect a positive result. The prospects for the years that follow are also hopeful. There are clear signs of recovery in certain markets, and that will lead to new applications for the construction of ships and equipment in 2021 and beyond.”
     

    VARIOUS MARKET DEVELOPMENTS:
    CUSTOM DREDGERS
    The market's initial response to the COVID-19 pandemic was to delay any investments. In the second half of 2020, the recovery started to become visible. The number of applications and concrete negotiations indicate a slow but steady recovery in the dredging market. The increased demand for custom dredgers is an indication of this trend.

    STANDARD MODULAR DREDGERS
    Despite postponed investments due to the COVID-19 pandemic, a positive result (at the level of 2018) was noticeable in the second half of 2020. Due to the short lead times around the purchase and a worldwide sales market, the COVID-19 effect will lag behind in 2021 with a lower expected turnover than 2020. Due to the restructuring of the organisation and the necessary changes to improve efficiency, this business unit will again see a positive result for 2021.

    OFFSHORE ENERGY: OIL AND GAS
    In the offshore energy market for oil and gas, the negative effect of COVID-19, in combination with a very low oil price in the first half of 2020, has been enormous. Investments in capital-intensive oil and gas projects were postponed or even stopped altogether. Demand for services and refurbishments from Royal IHC remained stable, albeit at a lower level. This has led to new service contracts for pipelay vessels, refurbishment orders, a range of tandem mooring and offloading systems, and riser pull-in systems.

    RENEWABLES
    The offshore renewable energy market continued to grow in 2020. This resulted (also for IHC IQIP) in a higher turnover and order intake compared to 2019.

    MINING
    The effect of the pandemic was also noticeable in the mining market, especially with regard to large capital-intensive investments. Despite the decline in the number of smaller orders, 2020 was ultimately a good year for the Royal IHC mining cluster. Two customised dredgers and a multi-year maintenance and service contract were realised. At the end of 2020, it became clear that demand in this market will increase due to shortages in raw materials.

    DEFENCE
    In 2020 Royal IHC started to expand its activities in the global defence market. For example, contacts have been strengthened with the Dutch Ministry of Defence. This initially led to a number of engineering assignments.

    Royal IHC is now a member of the ‘HR ecosystem’ and a partner in the Maritime Capacity Alliance. This is aimed at the exchange of knowledge and innovations, and in cooperation with the Ministry of Defence in the context of the adaptive armed forces. Royal IHC also intensified its cooperation with NAVAL Group to qualify for the Walrus replacement programme.

    Royal IHC expects a worldwide increase of investment in defence equipment in the near future. In The Netherlands, this could lead to extra expenditure for, among other things, the replacement and renewal of part of the naval fleet.

    SERVICES AND PARTS
    Royal IHC's business activities surrounding the provision of services, equipment and parts remained relatively stable in 2020. This included maintenance and the improvement or renewal of installations and components. The minimum expectation is that this will also apply to 2021 across all markets in which Royal IHC is active.




2021 September 26

17:45 USCG, Japanese navy conduct exercise near Dutch Harbor
14:51 Hidden Gem’ arrives in Rotterdam to be transformed into nodule collection vessel for The Metals Company
13:21 LR projects win funding to accelerate research into maritime decarbonisation
12:28 ESVAGT takes delivery of third newbuilt SOV vessel
11:07 ABS Awards AIP to Ned Project’s wind turbine installation vessel design

2021 September 25

15:03 Rolls-Royce and Sanlorenzo add new dimension to partnership with mtu engines and integrated bridge solutions
13:27 JAX LNG and TOTE complete first renewable LNG bunkering in the United States
12:41 Babcock cuts steel for Royal Navy’s Type 31 frigate HMS VENTURER at Rosyth
11:37 Höegh LNG Partners LP announces a new long-term FSRU contract for the Höegh Gallant
10:52 MYCRANE set to launch in four more countries as franchisees are appointed

2021 September 24

18:16 ABS and HHI design optimized LNG carriers
17:59 Admiralteyskie Verfi shipyard launches the Kapitan Martynov freezer trawler
17:55 Italian terminal operator orders two Konecranes Gottwald Mobile Harbor Cranes
16:12 Three Finnish icebreakers return to service after being repaired at Turku Repair Yard
15:03 Maersk invests in electrofuels startup company
14:40 International conference “Inland waterways: strategic potential for growth” focused on INFUTURE project was held on September 20
14:13 Dredge spoil disposal system planned for fairway deepening project
13:57 LAS Vice Admiral Kulakov went to the Atlantic
13:33 Wärtsilä ensures optimal performance and minimal carbon footprint for world’s most environmentally friendly ferry
13:09 Wan Hai Lines holds online ship naming ceremony for new vessels
12:38 Sredne-Nevsky Shipyard launched unmanned research ship Pioner-M
12:10 Record mid-year cargo volumes through the Port of Vancouver in 2021
11:46 SCF Group wins sci-tech award for development in Arctic exploration
11:02 Rolls-Royce and Overmarine continue cooperation with future-oriented mtu technologies
10:07 Tallink Grupp secures another short-term charter deal for vessel Silja Europa
09:59 MPA, SSA and GCNS sign MoU to raise carbon accounting capabilities amongst maritime companies in Singapore
09:41 MABUX: Global Bunker Market may continue firm upward trend on Sept 24
09:24 Crude oil prices continue increasing
09:09 Baltic Dry Index as of September 23

2021 September 23

18:05 Maersk calls Jafza home for its first Warehousing & Distribution facility in the UAE
17:25 GTT and Deltamarin receive AiP from American Bureau of Shipping for their new design applied for LNG fueled tanker
17:05 LR grows fleet optimisation offering with GreenSteam acquisition
16:25 The Port of Rotterdam Authority helps German DeltaPort to be a regional hydrogen hub
16:15 Panama Canal joins to the Call to Action for Shipping Decarbonization
15:39 Dry cargo vessel of RSD59 design, Alexander Ivanov, leaves for sea trials
15:21 ABS grants AIP for next generation liquified CO2 carrier JDP designs
15:05 Synergy Group to take over Maersk Tankers’ technical management business
14:37 DNV and LISCR award AiP to HHI for 40,000 CBM liquefied CO2 carrier design
14:17 Kaliningrad region and FESCO to cooperate in the field of logistics
13:48 Damen can build icebreaking ships for Russia’s Arctic projects within short timeframes
13:25 Sweden’s largest port solar cell system inaugurated at Stockholm Norvik Port
13:15 MABUX: Bunker Weekly Outlook, Week 38, 2021
12:56 Keel-laying of Damen tug series for Atomflot held in Saint-Petersburg
12:51 MSC invests in new efficiency solution to reduce emissions from fleet
11:00 13th Annual Capital Link Shipping & Marine Services Forum took place with great success on September 13, 2021
11:00 Rolls-Royce and Sea Machines sign partnership to cooperate on smart ship and autonomous ship control solutions
10:34 APM Terminals partners with Siemens for energy optimisation and emission reduction at terminals
09:58 Torqeedo and Fassmer Shipyard announce the CIT-E Ferry - a passenger ferry for public transport
09:46 MABUX: Global Bunker Market may demonstrate firm upward evolution on Sept 23
09:29 Crude oil prices continue increasing
09:14 Baltic Dry Index as of September 22

2021 September 22

18:05 ClassNK joins as signatory to Call to Action for Shipping Decarbonization
17:47 Localization level of LK-60 icebreakers estimated at 92% in finance terms
17:20 Torvald Klaveness joins over 150 industry leaders and organizations in call for decisive government action to enable full decarbonization of international shipping by 2050
16:55 SC Zvezda counts on signing contracts for 10 tankers under Vostok Oil project in October 2021
16:31 Transition to unmanned navigation and navigation with reduced crews will be possible in Russia in three years
16:30 LR, HHI and KSOE sign MoU to develop digital twin technology for an LNG carrier
16:10 APM Terminals Pipavav marks 1,000 days of safe operations
15:39 Wärtsilä and SHI agree to collaborate on ammonia fuelled engines for future newbuilds
15:14 NAVTEK proves first zero-emissions tugboat performance