Despite another net loss over 2024, Royal IHC’s operating result turned positive. At the same time, the Dutch shipbuilder’s order book is growing, making CEO Derk te Bokkel positive about the future now that ‘customers’ confidence in the future of Royal IHC is returning.’
According to Royal IHC, the year 2024 marks a turning point. The positive results of the strategic review and restructuring in 2023 have created the foundation for further growth.
Revenue increased with forty per cent in 2024 to EUR 436.4 million (2023: EUR 312.3 million). Although the year ended with a net loss of EUR 33.4 million, the operating result (EBITDA) turned positive at EUR 1.4 million (2023: EUR -31.2 million, excluding IQIP). At the end of 2024, the order book stood at approximately EUR 400 million.
As such, the maritime technology company is taking an important step towards net profitability and controlled growth. ‘In 2024, we transitioned from restructuring to building the organisation,’ says Te Bokkel. ‘Our operational and financial results are improving, the organisation is more agile.’
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Significant backlog
The improved financial stability is the result of the new direction, restructuring and favourable market conditions.
Te Bokkel: ‘This combination inspires confidence among our stakeholders, despite global geopolitics and macro-economic uncertainty. This is reflected in our order book, with growing flow business and recent orders such as the mega hopper for Boskalis, the medium-class hoppers for USACE and Dutra, the hopper for DCI and the engineering for an electric cutter for QMM. A further increase is expected in the near future once the contracts for the cable lay vessel for OMS and our future contribution to the four Dutch submarines become effective.’
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Building ships in the Netherlands and abroad
The strategy introduced in 2023, with shipbuilding in the Netherlands, shipbuilding abroad, design and equipment and the flow business, has been well received by the market. In the Netherlands, Royal IHC focuses on complex projects with shorter lead times and orders for the navy.
The partner shipyard in Vietnam is taking on projects with a lower risk profile and more flexibility in planning, with the aim of building larger and more complex ships there in the future. Te Bokkel: ‘After completing the two cutter suction dredgers for Kenmare, we will soon start building a Beagle 8 for Vishwa Samudra in Kinderdijk. In Vietnam, the construction of a 2300-m3 hopper for Baggerbedrijf De Boer-Dutch Dredging is proceeding according to plan. This will be followed by the cable lay vessel for OMS.’
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Refinancing enables contracts for larger, complex vessels
Another important step towards sustainable profitability is the further growth of the flow business, including smaller (standard) dredgers and mining vessels, services, maintenance, spare parts, automation and modification projects, the sale of design and equipment packages and the development of cost-effective construction propositions for the replacement market.
In addition, the recently completed new financing structure is important for supporting future orders. Te Bokkel: ‘Our new financing was not a rescue; Royal IHC currently has sufficient work. The new financing enables establishment of new guarantee facilities, including from Atradius, which are essential for entering into contracts for the construction of larger and more complex vessels.’
‘We are very grateful for the confidence that our employees and external stakeholders have placed in our business operations and new financing structure. These positive developments would not have been possible without their commitment. We look to the future of Royal IHC with confidence,’ concludes Te Bokkel.
Picture by Royal IHC.
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