Brunel Q1 2014 results

Thursday, May 1, 2014

15% Revenue growth and improved profitability 

Key points Q1 2014

Key points Q1 2014

  • Revenue up 15% to EUR 341 million
  • Gross profit up by 18% to EUR 62 million
  • Gross margin at 18.2% up from 17.7%
  • Operational costs up 5% driven by the strengthening of commercial organisation
  • Ebit up 57% to EUR 21 million

Brunel International (unaudited)

P&L amounts in EUR million

Q1 2014

Q1 2013

Change %




15% *

Gross Profit




Gross margin










Average directs




Average indirects




Ratio direct / indirect



 * 23% at constant currencies

Revenue in the Oil & Gas division increased by 19%, a joint effort from both the Energy division and the Projects division. At constant currencies, Oil & Gas’ revenue growth is 31%.

The Energy division grew in all regions quarter-on-quarter, where a majority of the regions achieved double digit growth. Driven by the Gorgon and Wheatstone projects in Australia, the Projects division also achieved a strong quarter. Projects’ revenue increased by 26% despite adverse currency fluctuations.

Gross margin in the Energy division improved across the majority of the regions, leading to an increase of 1.1ppt, to 12.0%. The Projects division’s gross margin grew by 2.4ppt to 10.4%, mainly as a result of project termination payments at relatively low margins in Q1 2013.

The division Europe also improved its top line, by 7% to EUR 102.5 million in Q1 2014. Gross margin increased by 0.2ppt.

Europe’s growth driver in Q1 was predominantly Brunel Netherlands, with a revenue increase of 15% to EUR 44.3 million, as a result of headcount growth of 9% and productivity improvements. The business lines Finance and Engineering mainly contributed to the growth. The Netherlands’ gross margin remained relatively stable at 30.6%.

Revenue in Germany increased by 4% to EUR 51.4 million driven by increase in both headcount and productivity. Germany’s gross margin increase of 0.5ppt to 36.7% is driven by the productivity improvement.

Total overhead costs increased by 5% to EUR 41.0 million, mainly as a result of increasing staff costs resulting from further investments made in the commercial organisation and sponsorship of the Volvo Ocean Race.

Driven by the revenue and gross profit increase, Q1 2014 EBIT increased to EUR 21.1 million, an increase of 57% compared to the same period last year, leading to an EBIT margin of 6.2%, a 1.7ppt improvement versus Q1 2013.


The outlook for 2014 continues to be positive, although it is not certain that we will be able to keep up this growth rate. For now, we expect 5 to 10% growth in revenue and EBIT for FY 2014, where Brunel Netherlands and Energy are projected to be the main drivers of the growth.

Jan Arie van Barneveld, CEO of Brunel International N.V.: “I am very happy to see our strong performance of the second half of 2013 continued in Q1 2014, and also with the opportunities we see within Energy, Germany and The Netherlands. I am confident 2014 will be once again a successful year for Brunel”.