AvH: 60% (control: 100%)

(€ 1.000) 2017 2016
Turnover 2,365,678 1,978,194
EBITDA 456,209 450,145
EBIT 222,623 217,584
Net result 155,055 155,584
Shareholders equity (part group) 1,321,842 1,220,638
Net financial posisition -296,203 -154,639
Balance sheet total 3,572,399 3,312,389
Order book 3,520 3,800
Capex (€ mio) 614 195
Personnel 4,488 4,284

(1) Proportial, not in line with IFRS 10/11

Key figures




Beneficial interest AvH: 60% (control: 100%)
AvH Contact: Koen Janssen

DEME is one of the largest marine construction companies in the world. From its core activities, dredging and civil works on water, the group has developed complementary 'offshore' activities in the field of renewable energy, oil and gas, and in the field of soil and sludge remediation, and the extraction of aggregates and minerals.

Information from the 2017 annual report

Financial overview 2017

DEME realized a solid increase in (economic) turnover to 2,365.7 million euros in 2017, compared with 1,978.2 million euros in 2016. For the first time, renewable offshore wind accounted for more than one billion euros of that figure. This favourable development is the result of DEME’s strategic decision many years ago to focus fully on the development of offshore wind energy. This choice and the many years of sustained investment in human resources and equipment underpin the strong market position which GeoSea (DEME 100%) has acquired. DEME was able to offset the temporary downturn in its traditional dredging activity by the diversification of its turnover into offshore wind energy, environmental activities, the extraction of sand and gravel at sea as building materials, marine civil engineering and concessions.

Despite the change in its mix of activities, DEME realized an EBITDA of 456.2 million euros. This EBITDA margin of 19.3% is entirely in line with the historical average of 16-20%. The 155.1 million euro net result was virtually the same as that of 2016.



Fleet investment programme

The fleet investment programme of DEME is primarily aimed at further increasing efficiency, in terms of both productivity and environmental performance. In the past year, the fleet was expanded with the 'Minerva' and the 'Scheldt River'. These two trailing-suction hopper dredgers represented a world first, because they are the first in their category to be equipped with dual-fuel engines, and can also be powered by LNG. This reduces the emissions of sulphur, NOx and micro-particles.

In addition, 6 new vessels are under construction, and will be put into operation in 2018-2020. With the 'Bonny River' (15,016 m³), DEME is investing in a new generation of trailing-suction hopper dredgers. The fleet is also being extended in 2018 by the multipurpose dredger ‘Living Stone’, which, among other things, is specialised in the laying of submarine cables, and the self-propelled lifting vessel ‘Apollo’. The self-propelled crane vessel 'Gulliver' (4,000 tons) will also be taken into use at Scaldis in 2018.

The first steel plate for the 'Spartacus' (44,180 kW) was cut in September 2017, which marked the official starting shot for the construction of this mega cutter-suction dredger. The ‘Orion’, another mastodon in which DEME is currently investing, will be primarily used for the offshore wind market. The 216.5 m offshore installation vessel is equipped with a crane with an exceptional lifting capacity of 5,000 tons.

Operational overview 2017

Dredging and land reclamation

In Belgium, DEME has continued with the implementation of several long-term contracts for maintenance dredging work in the major national waterways and in the North Sea. At the beginning of 2017, the company won a four-year contract for maintenance dredging and the treatment of contaminated sediments in the Ghent-Terneuzen Canal. Later in the year, DEME was responsible for the supplementation of sand in Bredene and the raising of the beach at Nieuwpoort. DEME also took care of dredging, trenching and backfilling work for the cables of the Rentel offshore wind farm (309 MW) in the Belgian North Sea.

In the Netherlands, de Vries & van de Wiel, working together with DEME Infra Marine Contractors (DIMCO), renovated the flood defences in the Lower Rhine (Nederrijn) and the Lek. A maintenance dredging programme for rivers in the west of the Netherlands was supplemented by the deepening and widening of the Meuse and the development of Kooyhaven in the port of Den Helder. In France, Société de Dragage International (SDI) won a contract for maintenance dredging work in the ports of Boulogne-sur-Mer and Calais, the Gironde and the access channel for the port of Gravelines. SDI also took care of the deepening of the Seine at Courval-Duclair, and was involved in the construction of a heavy-load terminal in the port of Brest.

In Germany, Nordsee Nassbagger- und Tiefbau was awarded contracts for maintenance dredging work in the Elbe and in the Weser. In October 2017, Nordsee finalised the complete dredging and land reclamation work for the expansion of the Europakaai (Europe Quay) in Cuxhaven.

NewWaves Solutions, DEME’s subsidiary in the United Kingdom, carried out the dredging work and the raising of the beach as part of the Dawlish Warren Beach Management Scheme in 2017. Furthermore, the ‘Reynaert’ was deployed for a number of essential dredging operations in the Portsmouth entrance channel and inner harbour. DEME was also active in port projects in Barcelona (Spain), Livorno (Italy) and Naples (Italy).

In Turkey, DEME dredged the foundations for the Çanakkale Bridge, the largest suspension bridge in the world.

In the meantime, the container terminal of the enormous Tuas Terminal Phase 1 port project in Singapore is now beginning to take shape. 143 of the 222 caissons were already let to water up to December 2017 for the construction of the future quay wall. In the meantime, 33.7 million m3 of the 70 million m3 large platform has also been filled. In August 2017, DIAP won an important Design & Build contract for a land reclamation project to expand the island of Jurong by 35 hectares. The works for the Jurong Island Westward Extension project are on schedule, and are expected to be completed in 2018. 2017 was also marked by the twentieth anniversary of the Lower Ok Tedi project in Papua New Guinea. The project includes the removal of potentially contaminated sediments in the river.

In Qatar, the port of Hamad was officially inaugurated in September 2017. DEME's subsidiary, the Middle East Dredging Company (MEDCO), has been responsible for the dredging and land reclamation work for almost three years. MEDCO also obtained the contract for the redevelopment of the old port in Doha in August 2017.

In Nigeria, DEME continued the maintenance dredging in the channel for the LNG terminal in Bonny and in the ports of Onne and Harcourt. The third phase of the land reclamation work for Eko Atlantic has been successfully completed in the meantime, and DEME is ready for the fourth phase. The main dredging work in the Lagos Deep Offshore Base was also completed in April 2017. The dredging and land reclamation works for the island of Elegushi in the Lagos lagoon has been started, and will be completed in 2018. Maintenance dredging work was also carried out in the port of Conakry and in the container section of Kamsar on behalf of the Guinea Alumina Corporation. The dredging work for the extension of the minerals quay of the Compagnie des Bauxites de Guinea in the port of Kamsar was completed early 2017.

In 2017, DEME was also active in Dubai (La Mer Jumeirah Open Beach), Panama (access channel on the Atlantic side), Brazil (Port of Santos, Sepetiba Bay), Sierra Leone (port terminal in Freetown), Ghana (extension of the Tema port, power plant in Kpone), Congo (Congo River), Benin (Cotonou coastline), Liberia (free port of Monrovia), India (seaport of Kakinada, commercial port of Kamarajar, civil port of Karwar, port of Dhamra), La Réunion (Nouvelle Route du Littoral), the Maldives (lagoon of Emboodhoo, Rah Falhu Huraa and Hulhumalé) and Mauritius (Port Louis). Finally, new contracts were also granted for the ports of Able Seaton, Harwich and Felixstowe (United Kingdom), Soyo (Angola) and Yuzhny (Ukraine).


Marine & offshore solutions

In August 2017, GeoSea completed the acquisition of A2SEA, the market leader in the transportation and installation of offshore wind turbines. The strong order backlog and experience in the installation and maintenance of turbines is a good addition to the activities of GeoSea, which is mainly specialised in foundations and EPCI contracts. GeoSea also became the main shareholder (72.5%) of G-tec, a Belgian contractor specialising in offshore geotechnical and geological site research and deepsea engineering, and which owns the unique offshore geotechnical research vessel 'Omalius'.

The installation of the foundations for the offshore wind farms Race Bank and Galloper in the United Kingdom were successfully completed by GeoSea in 2017. A number of major projects were launched for offshore wind farms in 2017: Hornsea Project One (UK, 174 foundations), Merkur (Germany, 396 MW), Rentel (Belgian North Sea, 309 MW) and Horns Rev 3 (Denmark, 406.7 MW). In addition, GeoSea has won several contracts, including Triton Knoll (860 MW, 90 wind turbine generators), Moray East (about 100 wind turbine foundations, 3 offshore platforms and foundations for substations), Hohe See (497 MW, 71 turbine foundations) and Albatros (112 MW). Pending their financial close, Triton Knoll and Moray East have not yet been included in the order backlog. Hohe See and Albatros already started in 2017.

DEME and COSCO Shipping joined forces in a joint venture to develop offshore wind energy in China. The first turbine for the Binhai H2 offshore wind farm for CDNE was installed in December 2017. The project includes the installation of 60 turbines with a total capacity of 400 MW. GeoSea also concluded a cooperation agreement for the Taiwanese offshore wind market with CSBC Corporation, the largest shipyard in Taiwan. In the next step, GeoSea and CSBC will set up a joint venture for the transport and installation of the foundations and wind turbines for these wind farms. Subject to the approval of the regulatory authorities, the joint venture will be set up in Taipei mid 2018.

Eversea won a contract for the dismantling of 7 satellite platforms in the North Sea.

As member of a joint venture, Tideway acquired all the pre-trenching and backfilling work for the offshore gas facilities of Aramco Hasbah in Saudi Arabia. Contracts were concluded for the Moheshkali project in Bangladesh (floating LNG terminal), for the Leviathan project in Israel and for Elia's Modular Offshore Grid in the North Sea (including delivery, installation and maintenance of the submarine power cables). Tideway also won all the inter-array cable work for the offshore Merkur wind farm, in addition to the cable installation, the pre-trenching, the backfilling and the placement of rubble for Hornsea One, the world's largest offshore wind farm. In 2017, Tideway installed all the inter-array cables and the export cable for the Rentel offshore wind farm, and completed work on the Burullus power plant in Egypt. The placement of rubble to protect the cables of the Caithness-Moray interconnection in Scotland was also started.

DEME Blue Energy (DBE) is the market leader in the development of blue energy, and focuses on energy projects that use waves and tides. DEME Concessions has acquired a minority stake in Tidal Power Scotland Limited (TPSL), a Scottish developer who, with the MeyGen project, has the world's first tidal power station with connection to the grid under its wing. The four gravity foundations for Phase 1A (1.5 MW per foundation) were installed at the end of 2016 and have become fully operational in the meantime. As the British government did not give a green light to a separate support mechanism for energy projects based on waves and tides, Phase 1B of MeyGen was postponed. In addition to the minority interest in TPSL, DBE is also collaborating in the West Islay Tidal Energy Park (30 MW) in Scotland and Fair Head Tidal Energy Park in Northern Ireland (100 MW).

Combined Marine Terminal Operations Worldwide (CTOW) won a contract extension for the LNG terminal of Bonny Island to operate two new ASD tugs (60 tons) for Nigeria LNG (NLNG). After the award of a second contract by NLNG, the fleet was expanded in November 2017 with the CTOW Eli, a pilot model of the Stan Tender 1905. In Onne (Nigeria), CTOW continued its towing activities to the container terminal in the port. Two additional, brand new tugs will strengthen the fleet in Bonny in 2018.

In the oil and gas market, Scaldis installed the L13-FI unmanned gas platform for NAM and took care of the decommissioning of the Horne & Wren platform and three Perenco gas platforms. In the offshore renewable energy segment, Scaldis won a contract for the transport and installation of the Rampion substation for EON. Finally, WPD turned to Scaldis for the installation of the first substation with bolt fastening for the offshore Nordergründe wind farm.


Maritime infrastructure solutions

DIMCO won a contract for the Rijnlandroute. COMOL5, the joint venture of which DIMCO is a part, is carrying out the reconstruction of the traffic junction in Leiden-West, as well as the construction of the 4-km-long N434, including a bored 2.2 km tunnel.

The Flemish-Dutch Scheldt commission has granted the contract for the design, construction and maintenance of the Nieuwe Sluis (new lock) in Terneuzen to Sassevaart, another joint venture of which DIMCO is a part.

The Rijkswaterstaat has awarded the A24 'Blankenburgverbinding' project, with a value of 1 billion euros, to BAAK Blankenburg-Verbinding, a joint venture of which DEME is a part. This project includes the design, construction, financing and maintenance of existing and new infrastructure (including an immersed tunnel) for a period of twenty years.

DIMCO also successfully completed the work at the Offshore Terminal in Rotterdam, and continued to upgrade the lock and flood defences in the Lek river.


Fluvial and marine resources

It was a busy year for DEME Building Materials (DBM). The aggregates installation reopened its doors in Amsterdam, and DBM added a third vessel to its fleet. The 'Mellina', originally a trailing-suction hopper dredger, was converted into a gravel dredger with a capacity of 5,000 tons. A large contract has now been awarded for the supply of gravel for the new IJmuiden lock in Amsterdam.

Global Sea Mineral Resources is well on the way to developing the world's first nodule collector with a tracking system. The 'Patania' soil testing device was successfully tested on land in a first phase to ensure that the system was ready for the first offshore expedition in May. The expedition lasted 45 days, and took place in the middle of the South Pacific. A successor to the nodule collector, the 'Patania 2', is already being developed in the meantime.


Environmental solutions

DEME Environmental Contractors (DEC) worked on several major projects in Belgium in 2017. Together with a joint venture partner, DEC has cleared nine former Eandis sites in Flanders. DEC also provided the reallocation and redevelopment of the Blue Gate Antwerp area, transforming a 63 hectare site into a prime location for ecological innovation. In Ghent, DEC completed the redevelopment of the sites of a former gas plant, where a chemical cluster is soon to be established under the name 'Dockland'. In addition, the first redevelopment phase of the prestigious 'Nieuwe Dokken (New Docks)' project was successfully completed in Ghent. Internationally, DEC carried out the redevelopment of a former refinery in Valløy near Tønsberg (Norway), and of a 100-ha-large coke site near Chesterfield (United Kingdom). The Dutch de Vries & van de Wiel company carried out redevelopment projects in Amsterdam, Haarlem, Den Helder and the surrounding area.

The Ecoterres recycling centres for soil and sediments did well in the past year. The Belgian facilities processed more than 250,000 tons of contaminated soil and sediments, in addition to 150,000 tons in France.

Purazur built a new water purification plant for Indaver. The project included both the design and the construction and commissioning of the new facility. Purazur is currently building a new water purification plant for chemical giant Borealis.


Concession activities

DEME Concessions has a 12.5% stake in Merkur, an offshore wind farm with a capacity of 396 MW in Germany. A consortium of five partners, including DEME Concessions, brought together a total capital of some 500 million euros. The Rentel project will be the fifth offshore wind project in the Belgian North Sea, with a total investment amounting to 1.1 billion euros. Together with the other shareholders of Otary, DEME also has an interest in the concessions for the Belgian wind farms Seastar (246 MW) and Mermaid (266 MW). The French energy regulator also included DEME Concessions, together with other companies, in the pre-selection for the development of an offshore wind farm with a capacity of 750 MW near Dunkirk. The tender is expected to be drawn up in the first half of 2018.

As an investor, DEME Concessions is also involved in the 'Blankenburgverbinding' project (see above).


Outlook 2018

Based on the full order backlog, DEME expects to achieve a turnover of more than 2.5 billion euros in 2018, with an EBITDA margin within the historic range of 16%-20%.


Press releases

01/10/2018 DEME : Approfondissement et élargissement du chenal Swinoujscie - Szczecin en Pologne attribué à un consortium comprenant Dredging International et Van Oord
21/09/2018 DEME unveils innovative nodule collector pre-prototype 'Patania II'
06/09/2018 DEME: Ambitious fleet investment programme continues with the order of two trailing suction hopper dredgers and two split barges