Dietsmann reports healthy results in challenging 2011
Breda, the Netherlands, April 11, 2012 – Dietsmann, the leading independent provider of integrated operation and maintenance services for oil, gas, LNG production facilities and power plants, today published its 2011 annual results. Dietsmann is proud to report that it booked healthy revenues and profits in 2011, in what proved to be a very challenging year.
The civil war in Libya forced us to suspend our activities in the country for more than eight months, while delayed contract awards in Iraq and deferred major C-inspection overhauls in Nigeria all had a negative impact on our results. Dietsmann responded quickly and effectively to these setbacks and managed to win a number of very important contracts that have put the company firmly back on the road to growth.
Despite very challenging circumstances, Dietsmann’s revenues came in at €246.2 million, just 6.3% down on the €263.0 million recorded in 2010. Due to the war in Libya and the absence of Okpai C-inspection in Nigeria, the Central/North African and Middle East region booked 30.4% lower revenues in 2011. On the positive side, revenues from our West Africa region and Europe/Asia region were up by 8.7% and 9.7% respectively.
Total operating expenses fell by 3% to €225.7 million, compared with €232.8 million in 2010, again largely due to the Central/North African and Middle East region with the turmoil in Libya and the absence of Okpai C-inspection in Nigeria. This also accounted for most of the 20% drop in expenditure on goods and services, which came in at €54.9 million, down from €68.7 million in 2010.
Operating profit (EBIT) came in at €20.5 million, 32% lower than the €30.2 million reported in 2010, again largely due to the civil war in Libya. The Central/North African and Middle East Region and West Africa Region were the main contributors to operating profit. Net profit for the year fell by 30% to €10.8 million, from €15.5 million in 2010.
In 2011, Dietsmann won new contracts in Congo, Angola, Nigeria, Kazakhstan and Libya. Thanks to these and other developments and excluding the one-off negative impact from Nigeria and Libya, Dietsmann’s underlying business became even stronger in 2011. Barring unforeseen circumstances, we are confident that we will return to revenue and profit growth in 2012.
“Looking back at last year, I am pleased to report that Dietsmann’s management was able to steer the company very effectively through a difficult and challenging year”, says Dietsmann’s Chairman and CEO, Peter Kütemann. “We were one of the first contractors to report back to duty in liberated Libya and our joint venture with Libya’s National Oil Company (NOC) was quickly awarded new contracts. New major contracts in Kazakhstan put us in a strong strategic position as a maintenance contractor in the huge Kashagan oil project.”
“I’m also very proud to report that Dietsmann once again delivered an extremely solid sustainability performance for the year. Our 2011, health and safety results have reaffirmed our position as a true industry leader.”
“We took our commitment to sustainability a step further in 2011, by signing up to the United Nations Global Compact. By doing so, Dietsmann publicly recognizes the importance and value of operating in an ethical, environmental, and socially responsible manner. As a signatory to the Compact, we will continue to contribute in every way we can towards building a sustainable society. We have also expanded the Sustainability section of our 2011 Annual Report to include the targets we have set in line with the ten principles laid down in the Global Compact. We will report on the progress we make on these targets on a regular basis.”
You can download the complete 2011 Dietsmann N.V. Annual Report in PDF format from the Corporate section of the company’s website: www.dietsmann.com.
Founded in 1977, Dietsmann is the leading independent specialist provider of operation and maintenance services for oil, gas, LNG and power plants. The company leverages over 35 years of accumulated plant and equipment know-how developed during its long-term partnerships with many IOCs and NOCs. Dietsmann acts as an independent expert interface between its clients and OEMs, making maintenance as efficient, coordinated and well-managed as possible. Dietsmann N.V. is a privately held company, with its registered office in Breda, the Netherlands and support and coordination offices in Monaco, engineering offices in France and Italy and operational subsidiaries in most oil producing countries in West and North Africa and the Middle East, as well as in Russia and Kazakhstan. The company is not an affiliate of any industrial or financial group, equipment manufacturer, construction group or engineering firm. This independence, combined with its consistent focus on its core business and its dedication to its clients, makes Dietsmann the most reliable maintenance partner for any capital plant owner or operator.
Dietsmann’s major customers are large international energy companies listed on the world’s most reputable stock exchanges. These companies are subject to high standards of corporate governance and expect their business partners to apply these same high standards. Dietsmann’s management fully acknowledges the importance of good corporate governance and has developed procedures and activities to apply the Dutch Corporate Governance Code, which prescribes policies and best practices for Management and Supervisory Boards, shareholders, financial reporting, auditors, disclosure, compliance and enforcement standards. Although the code applies only to listed Dutch companies and therefore not to Dietsmann, the Management and Supervisory Boards use its provisions as a reference in the development and implementation of good corporate governance regulations for the Dietsmann Group. These are published on the company’s website, also in accordance with the principles of the code.