2024 was a record year for Esvagt, which reached the highest levels in the company's history in terms of both revenue and EBITDA – DKK 1.47 billion and DKK 508 million, respectively. The company announced this in a press release.
The year was marked by strategic progress, including a long-term contract with Vestas for a new-build SOV for the Hollandse Kust West Wind Farm. ESVAGT's newbuilding program now includes four SOVs, and all of these vessels are covered by multi-year contracts.
- 2024 was a strong and important year for us. We saw an improvement in some of the structural challenges that have characterized the offshore wind market in recent years, with high interest rates and slow approval of new projects; we secured important new contracts, and we made significant progress with our two innovative e-methanol-powered SOVs, which are currently being built for Ørsted, say ESVAGT's co-CEOs Søren Karas and Kristian Ole Jakobsen in a comment on the financial statements.
Expecting less growth in the short term, but confident in the future
At the same time, the company's standby and supply vessels (ERRV) were in demand in the oil and gas markets, which according to Esvagt still play a role in the green transition. The first half of the year in particular was characterized by high activity and contract renewals on improved terms. On the other hand, 2025 is expected to be more subdued due to macroeconomic uncertainty, inflationary pressure and lower activity in the UK in particular.
- We expect the ERRV markets to continue at a reasonable pace, driven by an increased focus on energy security and an acceptance of the role that oil and gas will play in the green transition. However, the UK market in particular, which was sluggish throughout 2024, is expected to continue with a somewhat limited level of activity into 2025, according to the co-CEOs.
In the longer term, however, there is still faith in growth at Esvagt, which invested over 400 million DKK last year, primarily in new SOVs. The total newbuilding program is now valued at more than 850 million DKK. DKK, and according to the company, it is an expression of continued confidence in the growth of the offshore wind sector.
- Although we acknowledge that growth may not be linear, the direction is clear: The sector is scaling up, and this development supports the need for SOVs and related services, say Søren Karas and Kristian Ole Jakobsen.
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