Brunel International NV (BRNL:AEX), the Netherlands-based global energy staffing firm reported revenue of €349.2 million, up 10% (up 13% organically) year-on-year, driven by the four global verticals renewable energy, conventional energy, mining and life science.

Gross profit was €69.2 million, up 1% (up 6% organically).

“During the first quarter of this year, we continued our strong organic growth, both top and bottom line,” Jilko Andringa said, CEO of Brunel International, said. “Our well-diversified portfolio of markets and capabilities positions us to benefit from the energy and digital transformation, enabling us to withstand the challenging circumstances in some of our client segments and countries.”

“Our continued process improvements, digital tooling and leverage of our infrastructure countered the gross margin pressure we had in the quarter,” Andringa said. “Our four strategic segments, mining, life science, renewable energy and conventional energy, showed continued growth year over year, confirming we are on the right strategic path.”

Revenue by region

The DACH region includes Germany, Switzerland, Austria and Czech Republic. Revenue per working day in DACH increased by 2%. The gross margin adjusted for working days improved to 37.3% in Q1 2024 (Q1 2023: 37.0%). Despite the challenging conditions in part of its markets, Brunel said it continues to see high activity levels, both on the client side, as well as the candidate side.

Revenue per working day in The Netherlands increased by 6%. The increase was mainly the result of higher rates, partially offset by the lower headcount and a lower productivity. The business line Legal continues to be the major driver of the growth. The gross margin adjusted for working days was 27.3% in Q1 2024 (Q1 2023: 28.1%).

Australasia includes Australia and Papua New Guinea. The group’s robust performance in conventional energy and mining sectors has sustained growth momentum, the group stated.

Middle East & India includes Qatar, Kuwait, Dubai, Oman, Kurdistan, Iraq and India. The growth in this region was mainly driven by its activities on the fabrication yards in Dubai and the completion of one of the projects in this quarter. Qatar continues to be a consistent and robust contributor to the region's performance. The gross margin decreased due to changes in the project mix. Maintaining operating costs at a constant level resulted in an improved conversion ratio.

The Americas includes Brazil, Canada, USA, Guyana and Suriname. The group continued to grow in its main market in USA and Canada in conventional energy and mining. The market for permanent placements in USA has experienced rapid expansion, giving a boost to the gross margin and enhancing the conversion ratio.

Asia includes Singapore, China, Hong Kong, South Korea, Taiwan, Japan, Indonesia, Thailand and Malaysia. The region’s performance of its fabrication yards in Indonesia and China has been the main driver of regional success. Singapore trailed behind due to slower than expected progress of a major project in yards. A favourable shift in its client mix led to a further improvement in gross profit.

Rest of World includes the Taylor Hopkinson brand, Belgium and other energy activities in Europe. Taylor Hopkinson continued strong growth in the contracting market, where it engages specialists to support its clients. The market for permanent placements in the offshore wind industry started to recover rapidly, and revenue for perm fees almost returned to the level of Q1 2023. The gross margin slightly decreased due to the faster growth in contracting compared to perm placements.

Our four strategic segments, mining, life science, renewable energy and conventional energy, showed revenue growth.

Andringa said, “We expect circumstances in several of our markets to remain tough in the short term, but we expect to be able to navigate well through these times. This sets us up for 'the next level' results on the medium term.”

Looking ahead, based on its performance and position in its key markets, Brunel expects the current trend to continue in Q2 2024.

Brunel International shares last traded at €10.48, 7.38% above its 52-week low of €9.76, set on 5 April 2024. The company has a market cap of €517.88 million.