Damen boasts order record, F126 project may shift to German parties

Financially, 2024 was a positive year for Damen Shipyards Group, the Netherlands’ largest shipbuilding group. The order book was filled with a record EUR 5.9 billion in new orders, rising to EUR 10.4 billion. Responsibility for the F126 project may revert to German parties, which will result in Damen focusing its defence business on the Royal Netherlands Navy.

Revenue remained just above 3 billion euros. Net profit rose from EUR 43 million to EUR 58 million. Damen expects 2025 to be another financially positive year.

‘We are pleased with the amount of work we accomplished last year and the resulting financial performance,’ says CEO Arnout Damen. ‘As a shipbuilder, we are doing well, as is our entire ecosystem of suppliers, innovative smaller companies, and knowledge institutions. Together with them, we are creating technological innovation and high-standard employment opportunities. In this way, we are strengthening the Dutch maritime manufacturing industry, a key pillar of our economy.’

Also read: Serco orders 24 Damen vessels to support Royal Navy

146 vessel deliveries

In 2024, Damen delivered no fewer than 146 new vessels to clients. This included the Volta 1 and the Bu Tinah. The former is Europe’s first fully electric tug, which has been put into service by the Port of Antwerp-Bruges in Belgium. The Bu Tinah is the first fully electric tug delivered in the United Arab Emirates and deployed by SAFEEN Marine Services.

Damen: ‘We see Damen’s profits continue to rise. However, this won’t happen on its own. There is fierce competition internationally, and the rising costs of materials and personnel make profitability a priority. Because we operate in various markets, and do so around the world, we have a robust business model. We are less vulnerable to sector-specific economic cycles and local instability. Plus, together with the entire Dutch maritime ecosystem, we remain fully committed to sustainable solutions in areas such as ports, offshore (wind) energy, and passenger transport.’

World leader in tug market

At its ship repair yards, the number of completed orders in 2024, at nearly 1200, was virtually the same as in 2023. In terms of newbuilds, tugs remain the largest category, with more than sixty delivered to clients last year, followed by cutter suction dredgers (CSDs), with fifteen deliveries. The top five newly delivered vessels also include fast crew suppliers (thirteen deliveries), cargo vessels for short sea shipping (eleven Combi Freighters), and eight Multi Cat workboats, the so-called maritime “Swiss Army knives”.

Notable projects completed last year include a second patrol ship (Offshore Patrol Vessel (OPV) 2600) for the Pakistani navy (PNS Yamama) and a floating landing platform for the New Glenn rockets of space company Blue Origin (Jacklyn).

Also read: Damen builds Offshore Support Tugs for Chomex Marino

F126 project could shift to German parties

In the naval sphere, the navies of Lithuania and Colombia, among others, trusted Damen with orders last year. However, the focus was primarily on orders in Western Europe. The finalisation of the 2024 annual figures took longer due to ongoing discussions surrounding the construction of the German F126 frigates.

Damen is still in constructive discussions with the German client regarding the progress of this project. They are exploring whether primary responsibility for the project can be shifted to German parties, with Damen remaining an essential partner. These discussions are expected to continue for several more months.

During the course of these discussions, it became clear that the Dutch Government’s commitment to support the F126 project with a temporary bridging loan of EUR 270 million did not need to be pursued further. Although no longer required, the company highly appreciates the Dutch Government’s willingness to provide this temporary financial support to the project.

Damen, in close collaboration with the Ministry of Defence of the Netherlands, now wants to focus even more on the ambitious fleet renewal plans of the Royal Netherlands Navy and the Belgian Navy for the strengthening and readiness of their navies.

Also read: Dutch government to vote on financial support for Damen

Electric and hydrogen

In the non-defence sectors, a notable feature was orders for fully electric-ready ferries in Canada, four for BC Ferries, and two for the City of Toronto.

Damen also received an order from Windcat for a sixth Commissioning Service Operation Vessel (CSOV). These vessels will transport personnel to and from offshore wind farms, serving as floating accommodation and workshops. They will be equipped with dual-fuel hydrogen technology, significantly reducing CO2 emissions.

Also read: VIDEO: Damen launches another ferry for BC Ferries

Legal proceedings

Damen is preparing for a lawsuit for allegations of fraud related to several projects between 2006 and 2016, ten to twenty years ago. A second case concerns allegations of violations of sanctions legislation. Damen is confidently awaiting the outcome of these proceedings.

Damen states it has invested substantially in its compliance programme and has established a robust and certified framework to support its global operations. No details can be provided about the content of ongoing legal proceedings, other than to say that they have no impact on the company’s current financial position and are not expected to affect the financial outlook in the long term.

Also read: Damen Shipyards prosecuted for bribery and sanction violations

Outlook

‘We expect results for 2025 will at least equal those of 2024,’ states Damen. ‘Our order book will continue to be strong in 2026 and beyond. Damen is a sustainable and innovative shipbuilder and maritime solutions provider, and in the coming years, we can strengthen our position in Europe and beyond. Together with all our colleagues in the Netherlands and abroad, we aim to be the most innovative and sustainable shipbuilder in Europe. I sincerely thank our employees, clients and subcontractors for their tireless, daily commitment.’

Picture: Damen Shiprepair Botlek (photo by Boaz Timmermans).