Royal HaskoningDHV delivers solid performance in 2016
Royal HaskoningDHV has seen another year on year improvement in operational performance delivering a net result of €12.1 million in 2016. The company’s strategy to focus and build on its leading positions and increase efficiency in operations has helped to further improve profitability to 4.1%.
CEO Erik Oostwegel: “We are pleased to report a solid performance in 2016, an improvement of our net result and a healthy order book of €281 million. Our company continues to drive positive change, helping clients use resources more efficiently and creating solutions which connect with people to make their lives easier, happier and safer.”
Royal HaskoningDHV has focused on achieving leading positions in selected markets, geographies and clients, improving project management and building the best teams to deliver services across the world. The global themes of urbanisation, water, mobility, resource scarcity and technology linked to the company’s leading services enabled it to bring future-proof solutions to its clients. During 2016, the company increased business with leading clients and maintained high scores in client satisfaction.
The company’s operational performance further improved in 2016 which continues the solid progress of the past three years. The net result ended at €12.1 million compared to €11.8 million in 2015, profitability (EBITA margin, recurring) improved to 4.1%. The results were delivered on the back of significant growth and margins in Maritime & Aviation and strong margins in Transport & Planning. Overall Royal HaskoningDHV recorded an 8% reduction in revenue of which 3% was caused by exchange rate differences and 5% was caused by less work subcontracted out. The company’s added value remained equal to 2015 adjusted for exchange rate differences. The company recorded a negative growth in the Netherlands but the country remains by far its largest region. The United Kingdom showed a clear recovery and grew its revenue again after a challenging 2015.
The net result was negatively impacted by €2.5 million restructuring costs – well below 2015. Divestments in 2016 were in line with the company’s strategy to focus on leading market positions and included the sale of small operations in Asia and the Middle East to strategic local partners with healthy growth ambitions.
Working capital management continued to require attention, the work in progress positions improved whereas outstanding debtors increased. Together with relatively high income tax payments as an effect of the sale of our office buildings in 2015, a slightly negative free cash-flow resulted. With a very strong balance sheet, the financial position of the company remains healthy.
Looking forward, Royal HaskoningDHV intends to accelerate growth, building on innovative and future-proof solutions that enhance society. The company is embracing technology and digitalisation and creating a culture to foster innovation, collaboration and meaningful work.
CFO Nynke Dalstra: “Our achievements during 2016 give us optimism for the years ahead. Our business has inherent strengths – great clients, people and projects – which create a sound and stable base.”
- During 2016 Royal HaskoningDHV delivered flexible future-proof solutions for clients and worked with governments to bring about sustainable transition, for example in energy and the circular economy. Highlights include:
- Royal HaskoningDHV carried out the design and evaluation of the Dutch platooning test with more than fifty semi-autonomous vehicles on the A2 motorway. As part of an initiative with Aon and other partners, the test demonstrates a significant step in improving road safety. It also highlighted the need for further developments and collaboration to create the ecosystem for the connected car.
- Dutch Water Authority Rijn en IJssel is developing the world’s first organic alginate factory in Zutphen. The alginate will be extracted from the residual water of nearby FrieslandCampina dairy plants after treatment using Royal HaskoningDHV’s Nereda technology. The project is a great step towards a circular economy with wastewater treatment plants that produce valuable resources instead of waste.
- Royal HaskoningDHV is supporting leading European energy company Vattenfall in developing the Norfolk Vanguard offshore wind farm. The company’s Environment Team in the UK is managing the Impact Assessment process to better understand the environmental and socio-economic impacts and identify local opportunities. The wind farm has the potential to generate electricity for 1.3 million homes a year.
- Royal HaskoningDHV, in consortium with Hyundai, has been selected to design the world’s largest maritime yard of its kind in Saudi Arabia. The King Salman International Complex for Maritime Industries and Services project combines four different yards, creating significant opportunities for economies of scale and enhancing the country’s economic development.
- 2016 saw the opening of Eskom’s Ingula Power Station in South Africa that now generates 1332 MW electricity, significantly improving energy supply to many homes in times of peak demand. Royal HaskoningDHV’s involvement in the Ingula pumped storage scheme started in 2005 as part of the Braamhoek Consultants Joint Venture responsible for design and construction supervision of Ingula’s main underground works, two dams, roads and buildings.
- Royal HaskoningDHV designed and managed the construction of the ultra-modern feed factory for De Heus Animal Nutrition that opened 1 October 2016 in Myanmar. The factory is located near Yangon and will mainly focus on producing feed for poultry which is a growing sector in the country. Besides feed De Heus will also organise knowledge seminars and training courses for the farmers to support them in the further professionalisation of their businesses.
- The Civil Aviation Authority of Singapore contracted Royal HaskoningDHV company NACO to carry out a Climate Change Resilience Study for airports including Singapore Changi Airport, one of the world’s busiest. The study showed which airport assets are vulnerable to sea level rise and intense rainfall and includes advice on what actions are needed in order to protect the airport against the risk of climate change and maintain uninterrupted operations.
Royal HaskoningDHV is an independent international engineering and project management consultancy. Our 6,000 professionals operating from across the world are committed to our promise to enhance society together. Throughout our 135-year history we have made strong coalitions with our stakeholders and connected our work to the reality of the daily lives of people in the communities in which we work. We are driving positive change through innovation and technology, helping clients use resources more efficiently and creating smart solutions for a more sustainable future. Enhancing society together.