COWI's record-big order book

30.08.2023

The green transition is not slowed down by inflation and higher costs of materials, which benefits COWI and its expertise in sustainable solutions. In the first six months of the year, COWI's business has grown organically by 12 per cent, and its record-big order book is approaching DKK 6 billion.

This summer's soaring heatwave and extreme precipitation made it clear that climate change is real and that we need to act now to find a solution. And action is being taken. In the first half-year, COWI achieved organic growth of 12 per cent, driven by strong customer relations and continued investments in new green energy, sustainable infrastructure and energy-efficient production facilities. In those six months, the order book grew by DKK 611 million to DKK 5.8 billion. 

Our growth is highly satisfactory and a result of executing on our strategy. It shows that our strategic focus on the green transition addresses a growing need in the market. Public and private investors are working hard to transition to a fossil-free future, while efforts are made to design a world for millions of new citizens that are connected by green infrastructure. Our expertise gives COWI a central position in this transition

Jens Højgaard Christoffersen Group CEO

COWI's recent wins include, among other projects, the expansion of the Copenhagen Metro (M5), a new stage of the Bergen Light Rail and another stage of the East Link railway project in Sweden. In addition, green investments in the USA are picking up speed as US politicians have agreed to allocate billions to that end.

Profitability is dropping now – but will go up

In the first six months of the year, the revenue went up by eight per cent to DKK 3,933 million, compared to DKK 3,365 million in the same period last year.

"This growth is quite satisfactory when you consider the negative impact of currency movements of DKK 182 million," clarifies Jens Højgaard Christoffersen.

Profitability (EBIT) dropped to 3.9 per cent due to a lower billability rate and the negative impact of currency movements.

"Net 475 people joined COWI in the first six months of the year, and it takes time for new colleagues to be up and running and billable. On the other hand, they give us the power needed to continue our growth," he explains.

Jens Højgaard Christoffersen is confident that the company's profitability will go up considerably in the coming years.

"All the fundamental parameters point in the right direction. We're growing because our customers return to do repeated business with us and because investments in a sustainable future will accelerate. Also, the share of large projects with a higher margin is growing relatively more than the other projects in our portfolio," says Jens Højgaard Christoffersen.

The acquisition of Icelandic Mannvit is highlighted as a strategic growth acquisition.

"Mannvit's expertise in carbon capture, geothermal energy and hydropower is in high demand. And we'll continue to invest in innovation and digitalisation to boost our business," ends Jens Højgaard Christoffersen. 

Major wins

In Denmark, COWI with subconsultants Arkitema and ØLLGAARD Rådgivende Ingeniører has been awarded a large design project for HOFOR – Greater Copenhagen Utility. The full-service consultancy for HOFOR’s Tinghøj Water Reservoir project includes rebuilding of Tinghøj Water Reservoir, a huge drinking water storage facility just north of Copenhagen. In principle, the water reservoir equates to an enormous water tower situated at the highest point near Copenhagen, 47 meters above sea level, and it is a protected building. The expected fee is approximately DKK 80 million and the project will run until 2031.

In Denmark, in a joint venture with Arup, COWI will act as owner's engineer (OE) for Metroselskabet, assisting with concept and reference design for what is set to be the world's greenest metro to date, M5. The initial phases of our services, the concept and reference design, will run for two years, but Metroselskabet has the option to continue our role as OE during construction for the next ten years. M5 is expected to open in 2035.

In Sweden, COWI will design Preem's production facility for green fuels in Lysekil. It is a large-scale production site for turning renewable raw materials into green fuels. The new plant in Lysekil is expected to reduce carbon dioxide emissions from vehicles by up to 1.7 million tonnes a year. COWI will be responsible for design, engineering and project management. The project is the single largest assignment COWI has had for Preem.

In the UK, COWI has completed the pre-FEED phase of our first massive carbon capture project in the country, Runcorn, one of the first energy-from-waste facilities in the world to have the technology. When finalised, the Runcorn project is set to remove 450,000 tonnes from the atmosphere annually.

In Norway, COWI was awarded the contract for the detailed design of Bergen Light Rail. The project concerns the fifth stage of the construction of Bergen Light Rail, which will extend from Bergen city centre to Åsane and will be ready in about ten years. COWI was awarded the contract together with our subconsultants, Rambøll and Asplan Viak. The total construction cost of this project is estimated at NOK 17 billion and the revenue for the design works is budgeted at NOK 1-1.5 billion.

Group financial result