Brunel, the Netherlands-based global energy staffing firm, reported revenue of €346.3 million in the second quarter of 2024 ended 30 June 2024, up by 6% year-on-year compared to Q2 2023. Organic growth was 4%, which excludes the impact of one additional working day (1.7%) in 2024 and a slightly negative currency effect (0.1%).

Reported gross profit was down 1% in Q2 2024, or 4% organically, which excludes the negative impact of additional working days of 3.1% and a negative currency effect of 0.04%.

Brunel saw continued growth of fees in conventional energy, mining and life sciences, while renewables lagged Within the local verticals, two of the larger areas, future mobility and the public sector, continued to stand out.

CEO Jilko Andringa, who is set to step down from his role by the end of the year, said in a press release, “During the second quarter of this year, we continued to deliver revenue growth in challenging market conditions. This led to growth of all global verticals during the first half year.”

“We experienced some delays in key projects within the conventional energy sector in Asia, which have now been postponed to early Q1 2025,” Andringa added. “Our pipeline in the renewable energy vertical for the remainder of the year is robust. The capital investment commitments in our global markets continue to be very high. In Germany, the market conditions remain difficult.”

“During the period, we have seen a decrease of our conversion,” Andringa said. “We responded with additional cost saving initiatives. We are able to do so because we have upgraded and will continue to enhance our unique global IT and digital infrastructure. This encompasses a full SAAS, cloud, market leading system and tools, enriched with AI, to further increase our speed, quality and efficiency,” Andringa said.

Reported and organic costs were down by 1% over the year. Brunel said it managed to keep the costs down through operational efficiency throughout the organisation despite the inflationary pressure.

Reported EBIT is down 2% over the year, or 20% organically, which excludes the impact of one additional working day of 18.8% and a positive currency effect of 0.6%.

Revenue by region

The DACH region includes Germany, Switzerland, Austria and the Czech Republic. Revenue per working day decreased by 2% (organic change). The gross margin adjusted for working days was 27.7% in Q2 2024 (Q2 2023: 31.5%).

Revenue per working day in The Netherlands increased by 2% (organic change). The increase was mainly the result of higher rates and higher productivity, partially offset by the lower headcount.

Australasia includes Australia and Papua New Guinea. The group said its strong performance in the conventional energy and mining sectors has maintained growth momentum, leading to a 24% revenue increase.

Middle East & India includes Qatar, Kuwait, Dubai, Iraq and India. This region’s 15% revenue growth was mainly driven by infrastructure clients won in Qatar and Dubai.

The Americas include Brazil, Canada, the US, Guyana and Surinam. The group continued to see growth in its key markets, the US and Canada, within the conventional energy and mining vertical. This led to an increase in revenues of 6%.

Asia includes Singapore, China, Hong Kong, South Korea, Taiwan, Japan, Indonesia, Thailand and Malaysia. In China and Singapore, the group faced delays in new projects related to fabrication yards.

Rest of World includes Taylor Hopkinson, Belgium and other energy activities in Europe. Delays in project financing, particularly in Taiwan, have affected quarterly revenue for Taylor Hopkinson, leading to an overall decrease in revenues for this region of 2%.

Brunel also reported today revenue of €695.5 million, up 8% on a reported basis and up 8% organically.

Looking ahead, the company expects the current trends to continue in most regions.

Asia will see the impact of the delay in the start of new projects, whereas the automotive market in DACH remains challenging. Brunel said it aims to achieve at least €20 million in cost savings to improve its profitability and conversion. This project will be largely executed in Q3, and the related cost savings this year will exceed the related one-off cost in 2024 (approximately €4 million).

Brunel International set a new 52-week low during today’s trading session when it reached €9.24. Over this period, the share price is down 25.56%. Shares last traded at €9.32, down 10.21% on the day. The company has a market cap of €532.05 million.