March 12, 2018

The Port of Esbjerg celebrates its 150th anniversary in fine fettle

A generally high level of activity and great progress in the wind energy sector made 2017 another record year for the Port of Esbjerg. During the year, the Port invested EUR 32.11 million in completing 250,000 m² of port areas and a new RoRo terminal in the East Port. The Port of Esbjerg expects that there will continue to be a need to make significant investments to meet customer demand. The Port is therefore maintaining its focus on ensuring it has the necessary financial strength via return on invested capital and low costs.

The Port of Esbjerg has published its financial statements for 2017. Turnover grew by 2.2% on 2016 and were EUR 31.61 million – a new record. Net profit was EUR 10.83 million.

High level of activity in anniversary year

Stable cargo turnover, a generally high level of activity and great progress in shipping out wind turbine components are some of the factors that ensured this year's profit. Offshore wind achieved shipped capacity of 1,300 MW, which is 200 MW more than in 2016.

Chairman of the Board Flemming N. Enevoldsen is satisfied with the result:

”I am pleased that we are able to present solid financial statements in our anniversary year. This confirms that both the city and its port are in really fine fettle. We have a very strong platform on which to develop well into the future.”

Strength to invest is essential to future growth

The Port of Esbjerg invested EUR 32.11 million in the completion of the East Port in 2017. The Port of Esbjerg has invested a total of EUR 228 million in new solutions and infrastructure since 2004. In 2017, the return on average invested capital (ROAIC) was 8.4%.

Flemming N. Enevoldsen believes that willingness to invest will continue to be decisive for the Port of Esbjerg, and it requires financial strength:

”Our financial muscle must be such that we are continuously able to make the investments required to meet our customers' needs and develop the Port of Esbjerg. Therefore, we must continue to keep costs down and ensure a sound return on our investments. The need for investment is unlikely to decrease in the future, given the market outlook and the high pace at which our environment has changed in the past.”

The Port of Esbjerg has just started an environmental impact assessment (EIA) of a future port expansion of up to 1.0 million m² so that the Port is ready to expand as demand for new areas arises. The EIA process is planned to finish at the end of 2019, after which any expansion can be planned and implemented.

Positive outlook for the Port's three main business areas

The wind turbine industry has a large pipeline ahead of it up to 2020, and in 2018 the Horns Rev 3 project will be the main priority in Esbjerg. RoRo traffic was stable in 2017 and everything indicates positive growth for 2018 although it remains unclear if and how Brexit might influence traffic. Finally, the positive growth rates in the international oil and gas industry in 2017 look as if they will continue and have a major impact on Esbjerg in 2018.

”Subject to the uncertainty that is a fundamental for the oil and gas industry, we can see clear signs that things are moving in the right direction. INEOS's and TOTAL's acquisitions in Denmark confirm that there is confidence in the potential of the Danish oil and gas industry. The same applies to the decision to invest EUR 2.8 billion in the redevelopment of the Tyra field. This historic, large infrastructure project will be hugely significant to Esbjerg from the end of 2018 on,” says Ole Ingrisch, Director of the Port of Esbjerg.

For more information:

Ole Ingrisch, Port Director, +45 4057 4300.

Flemming N. Enevoldsen, Chairman of the Board, +45 4043 1303.

Key figures from the Port of Esbjerg’s annual report 2017: