Semco Maritime saw a stable business development in 2020 despite the historically difficult market conditions caused by the COVID-19 pandemic and very volatile oil prices. Accelerating its order intake, the Group secured a historically large order book in the Renewables business area, which in the coming years will represent a growing proportion of revenue in accordance with Semco Maritime’s strategy.
Revenue was relatively stable, totalling DKK 1,879 million (2019: DKK 1,905 million) despite the difficult market conditions in 2020. After a high level of activity during the first few months of the year, the COVID-19 pandemic weighed on revenue due to travel restrictions and an abrupt slowdown in the service business as well as slower decision-making processes by customers.
“Our ability to deliver good results was attributable exclusively to an exceptional effort by all employees of Semco Maritime. In recent years, we have created an organisation capable of seamlessly switching between projects in Renewables and Oil & Gas, and the agility and flexibility of our employees have proven decisive for our ability to serve our customers in a satisfactory manner. In fact, we delivered all projects on time and to budget although the versatile environment placed heavy demands on our innovative capabilities along the way. We owe a sincere thanks to our dedicated employees in this regard,” says CEO Steen Brødbæk.
Semco Maritime reported a sharp order intake increase of 29% to DKK 3,114 million (2019: DKK 2,412 million) from a strong starting point. By the end of the year, the order book had thus risen to DKK 2,278 million (2019: DKK 1,043 million) with the positive developments driven especially by the conclusion of major strategic contracts in the Renewables business area.
Semco Maritime held its gross margin at 61% (2019: 61%) despite the negative consequences of COVID-19 in 2020 owing to strong project execution and cost management. The Group significantly improved its earnings, lifting EBITDA to DKK 71 million (2019: DK 53 million) and the EBITDA margin to 3.8% (2019: 2.8%) before special items.
“Overall, Semco Maritime emerged stronger from 2020, which was in many ways a year of extensive learning. We learned that we can be efficient, adapt and perform by working remotely – but also that, longer term, we rely on fruitful cooperation with colleagues, customers and business partners to create the quality projects that Semco Maritime is known for. Our customers continue to have confidence in us, securing a historically large order book of DKK 2.3 billion, with Renewables accounting for 76% and Oil & Gas for 24%. This makes us expect the high level of activity will continue in 2021, as we intend to increase our revenue and consolidate earnings, although we will also be investing heavily in creating continued growth in our Renewables business in particular,” says Steen Brødbæk.
Based on sound business developments in the first quarter, Semco Maritime expects a higher level of activity as well as higher revenue and earnings in 2021. The outlook is subject to considerable uncertainty due to COVID-19.