2020 was a year of unexpected challenges. Due to COVID-19, everyone had to be at their very best in order to face these exhausting circumstances. Lockdown measures, working from home, travel restrictions; all this had a major impact on the organisation of global player Jan De Nul Group. However, the flexibility of the group and of its staff ensured that 2020 also closed with healthy financial results.
The expected revival of the international dredging market in 2020 was hampered by the pandemic. However, the offshore segment ran at full speed. The offshore renewables sector kept growing at high speed and prospects are very encouraging. Indeed, the market is not limited to Europe anymore: in 2020, Jan De Nul Group also built windfarms in Taiwan and in the United States. The civil engineering activities of the group kept pace thanks to a strong real estate market in combination with a number of major projects on the infrastructure market. The performance of the smallest branch of activities of Jan De Nul Group, its environmental division, remained stable.
In 2020, Jan De Nul Group achieved an annual turnover of more than 1.9 billion euros. The EBITDA reached 344 million euros, i.e. 18% of the turnover, a performance in the lead group of the industry. This is the result of Jan De Nul Group’s aiming for operational excellence. Jan De Nul Group stays ahead thanks to its ultra-strong balance profile, with equity capital in excess of 2.9 billion euros, resulting in an unprecedented solvency of a very healthy 72%. In addition, the group has the benefit of a major liquidity position with a nett liquidity surplus of 279 million euros.
In addition, Jan De Nul Group keep their reputation intact as a business that invests heavily. In 2020, the 6,000 m³ trailing suction hopper dredger Ortelius was added to the fleet, as well as cutter suction dredger Willem van Rubroeck, the most powerful cutter suction dredger in Jan De Nul’s fleet. In January 2021, it was joined by the 18,000 m³ trailing suction hopper dredger, Galileo Galilei.
To strengthen their offshore fleet, Jan De Nul Group purchased the cable-laying vessel Connector in December 2020, and construction of vessels Voltaire and Les Alizés is now in progress. Voltaire will be able to install wind turbines with a height of up to 270 metres, unique on the market. Les Alizés is a crane vessel for floating installations and will be fitted out with a main crane, with a lifting capacity of 5,000 tonnes and, just as impressive, lifting heights. The launch of both vessels is planned for 2022.
Therefore, Jan De Nul Group sets a constant course with a healthy financial position and targeted investments. This paid off and, at the end of 2020, translated into an order portfolio of 3.2 billion euros.
ACTIVITIES IN 2020
The maritime dredging and offshore sector remains in 2020 the cornerstone of Jan De Nul Group’s activities with 77% of the total turnover of the Group.
In 2020, the dredging division of Jan De Nul Group was responsible for the deepening and widening of the Elbe River in Hamburg (Lower and Outer Elbe), Germany. In Africa, Jan De Nul Group was active in Benin for the coastal protection works near the coastal villages Avlékété and Djégbadji, part of the town called Ouidah. Jan De Nul Group is building a submerged dike at about 150 meters off the coast and performing beach reclamation works. The works started in February 2018 and will be completed in 2021. In the Middle-East, Jan De Nul Group worked for the completion of the ‘Dibba bulk handling terminal – Package 3 project’, consisting of dredging works in the channel and harbour basin as well as the fishery harbour and port infrastructure works in the United Arab Emirates. In Asia, Jan De Nul Group undertook maintenance dredging works in the port of Mailiao, Taiwan. In Latin America, Jan De Nul Group is also operating and maintaining the access channel to the port terminals of Guayaquil, Ecuador, under a 25-year concession contract.
The offshore division was once again involved in the construction of several offshore wind farm projects, in and outside Europe. In Belgium, Jan De Nul Group installed Northwester 2 and in Germany, the Trianel Offshore Wind Farm. Outside Europe, more specifically in Taiwan, Jan De Nul Group is responsible for the supply, transport and installation of foundations, cables and wind turbine generators for 21 5.2 MW Hitachi turbines for the Changhua Offshore Wind Farm. Also in Taiwan, Jan De Nul Group executes the EPCI-contract for the design, supply and installation of 47 WTG foundations, 4 export cables and 47 inter array cables for the Formosa 2 Offshore Wind Farm. In the United States, Jan De Nul Group completed the transport and installation of two offshore wind turbines for the Coastal Virginia Offshore Wind Farm Pilot Project.
Furthermore, the offshore division executed general offshore services, amongst other things, the preparation of the shore approach in Italy and Albania for an undersea trans-Adriatic pipeline, as well as rock installation works for the construction of the Tortue LNG hub in Senegal-Mauretania. In Greece, Jan De Nul Group installed at great depths a 135-kilometer long submarine cable for the interconnection between Crete and the Greek mainland.
With 21% of the Group’s total turnover, the civil activities remain more than a significant part of Jan De Nul Group. The civil division has a wide variety of projects in its portfolio, with a focus on complex design and engineering projects, both in Belgium and abroad. The type of projects ranges from buildings, over transport related infrastructures to water related infrastructures like quay walls and locks. The civil department offers its services to private clients, public parties and participates in Public Private Partnerships (PPP). In Belgium, Jan De Nul Group continues to contribute to the renovation of the Leopold II-tunnel in Brussels and, in Charleroi, the construction works of the Grand Hôpital de Charleroi (GHdC) has continued.
Envisan, the environmental division of Jan De Nul Group, focuses on environmental technology solutions. The environmental activities keep a stable 2% of the Group’s total turnover. To support these activities, Jan De Nul Group owns and operates six soil and sediment valorisation centres in Belgium and France. In Antwerp, Belgium, Envisan has started soil remediation works at the Fort Philip site. As in previous years, the environmental segment works closely together with the maritime and civil activities and, in particular, with the project development partner of the Group, PSR Brownfield Developers, which is active in the remediation, repurposing and sustainable development of polluted industrial sites and under-utilised sites.
HIGH SOLVENCY AND NET FINANCIAL DEBT
In the financial year 2020, Jan De Nul Group maintained its high solvency position with an unprecedented ratio equity / balance sheet total of 72%. Equity increased from 2,941 million euro in 2019 to 2,950 million euro in 2020, thanks to a sustained policy of complete profit reinvestment (no-payments-of-dividends policy).
Since 2014, Jan De Nul Group is completely net debt-free. This is quite unique, especially considering the Group’s strong investment-DNA. Jan De Nul Group is currently making significant and strategic investments in its offshore fleet, through the construction of Jack-Up Installation Vessel Voltaire and large Crane Vessel Les Alizés. The net cash position at the end of 2020 amounted to 279 million euro. This solid balance sheet is a major asset of Jan De Nul Group in the context of economic volatility, future investments and competitive strength.
GEOGRAPHICAL PRESENCE
Although the world is its market, Jan De Nul Group continues to have a strong presence in Europe: 38% of its turnover was realised across European countries. Jan De Nul Group’s activities, however, grew fastest in Asia and the Middle East. The share of this region in the Group’s turnover continued to increase from 18% in 2018 to 27% in 2019 to 37% in 2020. This increase is driven by Jan De Nul Group’s activities for the construction of three major offshore wind farms in Taiwan. Furthermore, in 2020 Jan De Nul Group was active in America (13%) and Africa (12%).
STABLE ORDER BOOK OF 3.2 BILLION EURO
Customers continue toappreciate greatly the diversity of Jan De Nul Group’s expertise. This translates into an order portfolio of 3.2 billion euros at the end of 2020. Jan De Nul Group’s order portfolio includes a/o the following major projects:
Maritime and offshore division
- In December 2020, Jan De Nul Group signed a contract with Payra Port Authority in order to maintain the depths of the existing port access channel. In January 2021, the vessels Diogo Cão and Henry Darcy were mobilized to Bangladesh in order to start the works.
- In 2021, Jan De Nul Group will complete the works for the expansion of the port facilities for Ibistek in Takoradi, Ghana. Also in Benin, the construction of the underwater breakwater and the coastline protection works will be completed.
- In the UAE, Jan De Nul Group and its partner will complete the expansion of the Port of Fujairah in Dibba. The Design & Build contract consists of dredging the navigation channel and port basin, reclamation and shore protection, as well as constructing breakwaters, a 765-meter long quay wall, foundations for ship loader rails, port infrastructure and creating utilities and aids to navigation.
- In Ecuador, Jan De Nul Group holds a concession for the deepening and maintenance of the 95-kilometer long access channel to the port of Guayaquil. Having completed the deepening in 2019, Jan De Nul Group continues with the maintenance and the operation of the channel for the next 23 years.
- In Buenos Aires, Argentina, Jan De Nul Group commenced a deepening and widening campaign for AGP Port of Buenos Aires in October 2020. After completing the deepening and widening works, Jan De Nul Group will continue to maintain the depth and width for 24 months until 2023.
- In Taiwan, Jan De Nul Group will continue with maintenance dredging works at the port of Mailiao. After the maintenance contract of 2018-20, a new contract has been awarded for another three years until 2023.
- Jan De Nul Group has previously successfully completed and delivered the first wind farm in Taiwan, Formosa 1 Phase 2, and is now continuing to build the second Taiwanese wind farm: Changhua Offshore Wind Farm with a capacity of 109 MW. The jacket foundations and the export cables were installed for this purpose in 2020 and in 2021 the inter-array cables will be further laid and connected. The 21 5.2 MW turbines from Hitachi will also be installed and put into operation in 2021.
- In 2020, Jan De Nul also started installing the pin piles for the jacket foundations of its third offshore wind farm project in Taiwan, Formosa 2 Offshore Wind Farm with a capacity of 376 MW. The fabrication of the jacket foundations in Indonesia and Malaysia is currently in full swing, as is the laying of the export cables. The jacket foundations will be installed next year, as well as the inter-array cables. These cables will be laid by the Connector, the Cable-Lay Vessel recently purchased by Jan De Nul Group, which is a perfect addition to Jan De Nul Group’s offshore fleet. Completion of this work is scheduled in the course of 2022.
- For the Kriegers Flak Offshore Wind Farm, Jan De Nul Group is installing a total of 72 wind turbines of 8.4 MW each on behalf of Vattenfall Denmark. All together, they will produce enough green electricity for the annual consumption of approximately 600,000 Danish households. The last turbine is scheduled to be installed in the summer of 2021. This offshore wind farm will immediately become the largest in Denmark and will increase Denmark’s offshore wind production by no less than 16 percent.
- The transport and installation of the wind turbines at the Saint-Nazaire Offshore Wind Farm in France will also be done by Jan De Nul Group. Preparation works for the seabed will continue in 2021 and the actual installation of the 80 wind turbines is planned for 2022. As for the Kriegers Flak Offshore Wind Farm, the Jack-Up Installation Vessel Vole au vent will be used for this project as well.
- In the United Kingdom, Jan De Nul Group is responsible for the transport and installation of the GE Haliade-X offshore wind turbines at theDogger Bank Offshore Wind Farms as from 2023. The transport and installation of the turbines in a period of three consecutive years will be done by Voltaire, the world’s largest Offshore Jack-Up Installation Vessel from Jan De Nul Group. The 3.6 GW Dogger Bank Wind Farms, which will be delivered in three 1.2 GW North Sea phases, will be the world’s largest offshore wind farm upon completion and is a joint venture between SSE Renewables and Equinor. Dogger Bank will generate enough energy when completed to power more than 4.5 million households each year, which is about 5% of the UK’s electricity needs.
- In April 2020, Jan De Nul Group and its partner signed the contracts for the supply and installation of high-voltage cables that will connect the Dutch offshore wind farms ‘Hollandse Kust Noord’ and ‘Hollandse Kust West Alpha’ to the onshore electricity grid.
In 2020, the main focus points of the project were the cable design and the detailed design of the tracked vertical injector, Moonfish, that will bury the cables in the nearshore section.
In 2021, the cables will be tested and manufactured, after which the actual installation works will start. The Cable-Lay Vessel Isaac Newton will sail to South Korea to load the submarine cables and install them upon return in the Netherlands. The cables will be buried by means of the jet trenchers UTV 1200 and the Moonfish. The multipurpose vessel Adhémar de Saint-Venant will perform rock installation works. The in-house designed elevated excavator Starfish and a Trailing Suction Hopper Dredger will also be mobilised.
Civil division
- In Belgium, Jan De Nul Group is part of the Scheldt tunnel construction of the Oosterweel project. The Scheldt tunnel is the most important connecting element in the Oosterweel link and closes the Antwerp Ring Road on the north side. The tunnel has a total length of 1,800 m and will be built according to the ‘immersed tube’ method. Eight tunnel elements of approximately 60,000 tonnes each will be built in the inner port of Zeebrugge and then towed to Antwerp via the North Sea and the Western Scheldt, where they will be immersed in a pre-dredged trench in the River Scheldt.
- Furthermore, in Belgium, Jan De Nul Group and its joint venture partner continue the construction of the Hospital of Charleroi. With an opening scheduled in 2024, the 154,000 m² complex is built on a 42-acre site and will have 1,000 beds.
- In the light of the Constitution contract, Jan De Nul Group and its partners have also started the construction of subway stations Toots Thielemans and Lemonnier and 575 metres of underground tunnels in Brussels.
Environmental division
- In 2021, the environmental division and its partners will continue to work on the largest rehabilitation project ever in the Port of Antwerp: Fort Philip. These heavily polluted ruins will be encased in an impermeable wall and top layer. Improved flood defences will better protect the harbour area against flooding.
IMPORTANT INVESTMENT PROGRAMME IN A VERSATILE FLEET
Jan De Nul Group maintain their current investment programme to keep its modern and versatile fleet constantly up-to-date. Climate-friendly technology is one of the major focus points in this.
- At the end of 2020, the Keppel shipyard in Singapore delivered the 6,000 m³ Trailing Suction Hopper Dredger Ortelius. Ortelius is the sister vessel of Sanderus, which was delivered earlier in 2019. Both vessels comply with the strictest emission standards and, together with three other vessels from our fleet, they were the first vessels in the world to obtain Bureau Veritas’ ULEv notation.
Bureau Veritas, the world leader in testing, inspection and certification, has developed a new certification for the performance of Ultra-Low Emission vessels (ULEvs). Jan De Nul’s latest trailing suction hopper dredgers, the Sanderus, Ortelius, Tristão da Cunha, Afonso de Albuquerque and Diogo Cão, are the first vessels to have been awarded this certification. - The COSCO Dalian shipyard in China delivered the Trailing Suction Hopper Dredger Galileo Galilei at the end of 2020. This dredger has ahopper capacity of 18,000 m³ and joins our medium-sized hopper dredgers. A special feature of this vessel and unique in Jan De Nul’s hopper fleet is that it has two separate hoppers on board. This allows the dredged material to be spread evenly over both hoppers, thus optimally controlling the load and the draught.
- After Jan De Nul Group (again) acquired the Cutter Suction Dredger Willem van Rubroeck in October 2019 through the highest bid in a public failure auction in Croatia, it was handed over to Jan De Nul Group in February 2020 and transferred to the Remontowa shipyard in Poland in April 2020. At Remontowa, she was further finished and delivered at the end of 2020. The vessel is currently on its way to its first job in Mauritania.
With a clear focus on the offshore energy projects of tomorrow, Jan De Nul Group is strategically investing in its specialised fleet for the offshore energy market.
- Jan De Nul Group ordered in the spring of 2019 the offshore jack-up installation vessel Voltaire from the shipyard COSCO Shipping Heavy Industry. In May 2020, the first steel plate was cut. Delivery is expected in early 2022.
- In autumn 2019, Jan De Nul Group ordered the large crane vessel Les Alizés from the shipyard China Merchants Industry Holding Co. This vessel is also in the steel construction phase with her first steel plate in December 2020. Les Alizés will enter the Jan De Nul fleet in mid-2022.
- At the end of 2020, Jan De Nul Group purchased the offshore construction and cable-lay vessel Connector from Ocean Yield ASA. The Connector is a DP3 Ultra Deepwater Multipurpose Subsea Cable- and Flex-Lay Construction Vessel. The vessel has a proven track record of installing power cables and umbilicals using its dual turntables with a combined total pay-load capacity of 9,000 tonnes.
GREEN FINANCING
Les Alizés and Voltaire will be working mainly for the renewable energy sector and will be fitted out with an advanced emissions processing system. Therefore, these investments are co-financed using a 300 million euro green loan.
The green loan was structured according to the ‘Green Loan Principles’ complying with the Loan Market Association (the sectoral association in which banks, lawyers and other financial parties are represented). The purpose of this is to promote investing in green projects by providing banks and businesses with directives about the characteristics of green loans.
About Jan De Nul Group
Design. Build. Connect. Jan De Nul Group shapes water and land. Worldwide. From complex services to the offshore energy and energy transition sector, over large dredging and defence works on the edge of water and land, to challenging civil and environmental works. Well integrated competences and investments lead to creative, sustainable and innovative solutions. In this way Jan De Nul Group delivers results that produce satisfied customers. Today, but also tomorrow. – www.jandenul.com
