Esvagt profitable in 2016 but expects 2017 to be a tough oneCompany News // June 7, 2017
Esvagt made a profit in 2016 but turnover was lower than in 2015 due to the downturn in the offshore oil and gas industry. The company expects it will be lower still in 2017.
The Danish company achieved a profit of DKK155 million (US$23 million) in 2016 compared to DKK192 million in 2015. Turnover was DKK960 million in 2016 compared to DKK1,002 million in 2015. “The reduction in turnover and profit was due to the downturn in the oil and gas industry which impacted the wider offshore market in 2016,” the company said. Turnover from the offshore wind market grew from DKK128 million in 2015 to DKK181 million, in line with Esvagt’s intention to expand into this market.
“We operate in a market that is still experiencing low levels of activity and difficult conditions. Our performance in 2016 was disappointing, but taking market conditions into account, we are at an acceptable level,” said Søren Nørgaard Thomsen, the company’s chief executive. “We evaluated the situation early on and adapted our business to the lower activity levels we anticipated the industry would continue to experience. This early action helped our 2016 performance.”
The company said making a profit was the result of a strict focus on costs and optimising the business.
“We anticipate that 2017 will be characterised by continuing low level of activity resulting from low oil prices,” said Mr Nørgaard Thomsen. “We must therefore prepare ourselves for lower levels of activity and lower profit but with an eye on market recovery by 2018. We are pleased with our progress in the offshore wind market and anticipate further growth in this segment.”