18 Aug 2016
Royal HaskoningDHV reports a strongly improved profitability in H1 2016. The company realized an organic growth of 2%, however currency effects led to a decrease in operating income. Recurring operating margin is moving in the right direction at 3.6%. The order portfolio increased and the company’s working capital position is better compared to H1 2015.

Erik Oostwegel CEO | Royal HaskoningDHVErik Oostwegel, CEO; “Our leaner organisational structure, implemented earlier this year, is now in full operation and starting to pay off. All Business Lines report margin improvement, which is especially due to better project results, and most of our Regions are showing growth. Increased sales efforts resulted in an 8% improvement in order portfolio at normalised currency rates. We will continue to focus on project acquisition and increasing our utilisation rates in the second half of the year in order to deliver a sustainable financial performance for the full year.”

Key Figures First Half Year

(€ million unless otherwise mentioned) 2016   2015
Operating income 311 319
Added value246 246
EBITA recurring* 11.3 7.3
Net result 4.5 0.1
Operating margin (recurring) 3.6% 2.3%
Free cash flow -24 -37

* EBITA recurring excludes non-operational items which were €0.6 million negative in H1 2016 (H1 2015: €3.5 million negative).


Exchange rate differences negatively impacted operating income and added value. Excluding the impact of currency effects, operating income increased by 2% and added value increased by 4% compared to H1 2015.
EBITA recurring performance is back on track with €11.3 million as a result of cost saving activities in the Business Lines, better project results and more workable days. As a consequence, the net half year result of € 4.5 million represents a substantial increase compared to H1 2015. Recurring operating margin is moving in the right direction at 3.6%.
Free cash flow is negative for H1 2016 which reflects normal seasonality and it improved compared to H1 2015. The company continues to have a very solid balance sheet.

Project highlights first half 2016

In the past half year Royal HaskoningDHV worked on a number of leading projects across its Business Lines:

Nereda Wastewater treatment plant - Ringsend, Dublin, Ireland - Royal HaskoningDHVThe success of its sustainable wastewater treatment technology Nereda® continues to gain momentum and is to be applied in Ireland’s capital city of Dublin. Royal HaskoningDHV’s Water team and its Irish partners have been awarded consultancy services for the Ringsend WWTP Upgrade Project. The project involves a retrofit of the existing installation and an upgrade in capacity to bring the total plant capacity to 2.4 million population equivalent.

Urumqi Airport -NACONACO, part of Royal HaskoningDHV’s Maritime & Aviation business, together with its partner ECADI (Eastern China Architectural Design Institute) won the design competition for a new 400,000m2 passenger terminal at Urumqi's international airport in north-western China. The winning design with its curved roof was inspired by the three peaks of the Tianshan Mountains that surround the city, capital of the Xinjiang Uygur Autonomous Region. The new terminal design has maximum flexibility to cater for up to 50 million passengers annually, placing this airport among the country’s largest.

Hlambanyathi Development Project - Royal HaskoningDHVIn South Africa, the Transport & Planning team recently delivered an award-winning road project in the Makhosaneni area in KwaZulu-Natal. Working in joint venture with an emerging local consultant, the upgrade of the main road includes construction of a new bridge over the mighty Hlambanyathi River. The team delivered a safe and sustainable design which improves residents’ access to schools, employment and healthcare facilities, thus helping to boost the economy in the area. Working in close collaboration with the local Department of Transport, the team also took this opportunity to actively transfer skills to residents.

Heineken Brewery Shanghai - Royal HaskoningDHVIn May 2016 a new brewery in Shanghai was opened for Heineken with whom Royal HaskoningDHV has a long-standing relationship. Royal HaskoningDHV’s Industry & Buildings team and partner C3 were responsible for the design of the civil works, as well as project and construction management, tendering, supervision, and safety, health and environmental services.


Definitions

Organic growth Operating income growth adjusted for acquisitions and currency effects 
Operating incomeNet turnover adjusted for change in work in progress, excluding other operating income 
Added value
Operating income less cost of work subcontracted and other external charges 
EBITA recurring EBITA (earnings before deduction of interest, tax and amortisation) excluding non-operational items 
Net result
Earnings after deduction of interest, tax and amortisation and other expenses 
Operating margin EBITA recurring / Operating income 
Free cash flow Cash flow from operating and investing activities 


Relevant information

Financial press releases