Financially, 2024 was a positive year for the Netherlands’ largest shipbuilding group Damen Shipyards Group (Damen). Turnover remained just above 3 billion euros. Net profit rose from €43 million to €58 million. The order book was filled with a record 5.9 billion euros in new orders and rose to 10.4 billion euros. Damen also expects 2025 to be a financially positive year.
Photo provided by Damen Schipyards
Damen Shipyards Group delivered as many as 146 new vessels to customers in 2024, including the Volta 1 and the Bu Tinah. The former is Europe’s first all-electric tug, which was commissioned by Port of Antwerp-Bruges. The Bu Tinah is the first all-electric tug to be deployed in the United Arab Emirates by SAFEEN Marine Services.
“We are pleased with the amount of work we did last year and the resulting financial performance,” explained CEO Arnout Damen. “As a shipbuilder we are doing well, which also applies to our entire ecosystem of co-makers, innovative smaller companies and knowledge institutions. Together with them, we provide technological innovation and high-quality employment. Thus, together we strengthen the Dutch maritime manufacturing industry, an important pillar of our economy.”
Robust business model
“We see Damen’s profits continuing to rise. But this is not going to happen by itself. There is stiff international competition and rising costs of materials and personnel make profitability a concern. Because we operate in different markets and operate globally, we have a robust business model. We are less vulnerable to sectoral business cycles and local instability. And we, together with the entire Dutch maritime ecosystem, remain fully committed to sustainable solutions in, for example, ports, offshore (wind) energy and in the field of passenger transport.”
Global market leader in tugs
Among ship repair shipyards, the number of completed orders in 2024 at nearly 1,200 was almost the same as in 2023. In terms of completed newbuildings, tugs are still the largest category. More than 60 were handed over to clients last year. This is followed by cutter suction dredgers for the dredging industry with 15 deliveries. The top five newly delivered vessels further consist of fast personnel vessels (13 fast crew suppliers), cargo vessels for coastal shipping (11 Combi freighters) and eight Multi Cat workboats known as “Swiss pocket knife. In addition, notable projects delivered included a second patrol vessel (OPV2600) for the Pakistan Navy (PNS Yamama) and a floating landing platform for space company Blue Origin’s New Glenn missiles (the Jacklyn).
Naval construction and progress of German project
In the field of naval vessels, last year, among others, the navies of Lithuania and Colombia ordered ships. But the focus was mainly on orders in Western Europe. Signing off on the 2024 annual figures took longer because of ongoing talks on the construction of the German F126 frigates. Damen is still in constructive discussions with the German client about the progress of this project. It is being considered whether primary responsibility for the project can shift to German parties, with Damen being and remaining an essential partner. Discussions are expected to take several more months. During the progress of these talks it has become apparent that the commitment of the Dutch government, to support the F126 project with a temporary bridging loan of EUR 270 million, does not need to be further elaborated. Although no longer needed, the willingness of the Dutch government to provide this temporary financial support is appreciated by the group. Together with the Ministry of Defense, Damen now intends to concentrate even more on the ambitious plans of the Royal Navy and the Belgian Navy for the necessary fleet renewal and reinforcement.
Electric and hydrogen
On the civilian side, orders for all-electric ferries from Canada in 2024 stood out. The BC Ferries company ordered four and the City of Toronto two. From Windcat, Damen received the order for a sixth Commissioning Service Operation Vessel. These vessels will transport personnel to and from offshore wind farms and act as a floating base of operations and workshop there. They will be equipped with dual fuel hydrogen technology, significantly reducing CO2 emissions.
Compliance
Damen is further preparing for an alleged fraud lawsuit in relation to some projects between 2006 and 2016, that is, 10 to 20 years ago. A second case involves allegations that sanctions laws were violated. Damen looks forward confidently to the handling of these cases. Damen has invested substantially in its compliance program in recent years and has established a robust and certified framework to support its global operations. No announcements can be made about the substance of pending litigation, other than to say that these cases have no effect on the current financial situation. The latter is also not expected in the longer term.
Vooruitzicht
The future looks bright. Arnout Damen: “We expect 2025 results to at least match 2024. With our order book we are in a strong position, also in 2026 and beyond. Damen is a sustainable and innovative shipbuilder and supplier of maritime solutions, and we can strengthen our position in the coming years in and outside Europe. Together with all our colleagues in the Netherlands and beyond, we want to be Europe’s most innovative and sustainable shipbuilder. I sincerely thank our employees, customers and suppliers for their relentless, daily commitment.”
Damen Shipyards Group delivered as many as 146 new vessels to customers in 2024, including the Volta 1 and the Bu Tinah. The former is Europe’s first all-electric tug, which was commissioned by Port of Antwerp-Bruges. The Bu Tinah is the first all-electric tug to be deployed in the United Arab Emirates by SAFEEN Marine Services.
“We are pleased with the amount of work we did last year and the resulting financial performance,” explained CEO Arnout Damen. “As a shipbuilder we are doing well, which also applies to our entire ecosystem of co-makers, innovative smaller companies and knowledge institutions. Together with them, we provide technological innovation and high-quality employment. Thus, together we strengthen the Dutch maritime manufacturing industry, an important pillar of our economy.”
Robust business model
“We see Damen’s profits continuing to rise. But this is not going to happen by itself. There is stiff international competition and rising costs of materials and personnel make profitability a concern. Because we operate in different markets and operate globally, we have a robust business model. We are less vulnerable to sectoral business cycles and local instability. And we, together with the entire Dutch maritime ecosystem, remain fully committed to sustainable solutions in, for example, ports, offshore (wind) energy and in the field of passenger transport.”