Despite the relative uncertainty created by the financial crisis, IHC Merwede remained stable and continued to strengthen its position within the maritime industry. The dredging sector performed better than anticipated which resulted in a worldwide demand for dredging equipment.
As a result, IHC Merwede has been able to maintain its revenue and increase its profitability. The company is expecting to achieve a further growth of at least five per cent in turnover during 2011. In 2010, revenue reached € 1.01 billion, which may be attributed to successful sales towards the end of 2009 – a trend which continued in 2010 with sales reaching € 1.02 billion.
Explanation
There is a clear explanation for the increased net profit figure. The most important factor is that the sales agreements with customers were concluded in a busy market, while the purchases made by IHC Merwede to satisfy these orders were made during the decline of 2009.
General Market Developments
The outlook for the offshore sector is also positive. Oil prices have risen again and look set to increase further. The offshore industry is expected to pick up in 2011 and should lead to an increase in capital expenditure. The order intake for IHC Merwede offshore equipment has been strong in the past year and this will continue in 2011. The expectation is that this will also be the case for offshore vessels.
Deep-Sea Dredging
The development of deep-sea dredging and mining continues to gather pace following studies from the Organisation for Economic Co-operation and Development (OECD). The research highlights the potential for this emerging area of the market and IHC Merwede’s expertise in dredge mining and mineral processing will help it to capitalise on these developments.
Life-Cycle Support
The two latest areas of development for new ships are: the expansion of life-cycle support to be sold as an integral part of the vessel package; and the introduction of finance arrangements. This will complete IHC Merwede’s offering of innovative vessels, advanced equipment and life-cycle support.
Strategy
IHC Merwede has four strategic priorities: internationalisation; growth; product and process development; and cooperation. These priorities have underlined IHC Merwede’s business development programme during the past financial year and will continue into 2011.
It will invest € 35 million in product and process development in 2011.
