Even though oil and gas prices increased during the year, the majority of 2017 was characterised by continued low activity and tough competition in the oil and gas industry. Towards the end of the year, demand from customers increased in this business area, which remains important to Semco Maritime. The hesitant market and continued price pressure in all business areas of the group entailed revenue of DKK 1,408 million in 2017 against DKK 1,598 million in 2016.
Despite the lower revenue and significant price pressure in 2017, Semco Maritime generated a positive operating result against an operating loss of DKK 127 million in 2016. This development was driven by cost adjustments completed in 2016 as well as improved project execution, which entailed a significant improvement of the gross margin to 68% from 60% in the previous year. The result of ordinary activities after tax improved by DKK 120 million to a modest loss of DKK 8 million against a loss of DKK 128 million in 2016.
“In 2017, we saw real tangible results of the hard work that has been done to adjust the business to the very dynamic market conditions, and our improved ability to execute on projects across the group generated progress. Despite continued challenging conditions, we have been able to generate a positive operating result after three unusual years. Despite the improvements in 2017 compared to recent years, the result for the year was not satisfactory, but we are well-positioned to ensure further progress in the coming years,” says CEO Steen Brødbæk.
