The magic numbers reflect IHC Merwede’s decision to enter a second core market last year to reduce vulnerability. IHC is now building complex vessels for offshore construction and that market will account for up to half the company’s turnover in the next few years.

Sales into both the dredging and offshore markets are doing exceedingly well, with a total of 11 custom built ships on order. Another 21 vessels from IHC’s Beaver range of cutter suction dredgers is on order and there is also a record volume of sales for the various specialised equipment companies within the group. Building slots for the four major newbuild slipways within the group are currently allocated until the middle of next year.

IHC Holland Merwede expects the roll to continue for as long as the global economy is expansionary, requiring additional capital dredging for new port facilities and the maintenance of existing ones. Migration to coastal areas is discernable throughout the world, expanding the requirement for both land reclamation works and coastal protection in the face of rising sea levels. There are also many tourist and urban development projects underway in the Middle East and elsewhere which require large marine contractors to expand fleet capacities.

In the offshore sector, with the exploration for and extraction of oil and gas moving increasingly to sea, to deeper water and to more inhospitable locations, the market grows for the specialised DP drill ships and pipe laying vessels, well intervention vessels, diving support vessels and heavy lift vessels which IHC builds.

The early repayment of €20m in long term debts gave IHC an almost debt free balance sheet at the end of last year. By concentrating on working capital management, there is free available liquidity for targeted acquisitions to strengthen the company’s position as it anticipates a turnover increase of another 35% this year.