Mammoet

Mammoet provides customers with smarter, safer, and stronger solutions to any heavy lifting or transport challenge. The company combines a unique global network and unparallelled fleet of equipment with proven engineering expertise and the highest quality and safety standards. The result is an intelligent and flexible approach to projects across a wide breadth of industry sectors. In building long-term relationships, Mammoet is able to develop a deep understanding of each customer’s business to offer the most efficient and cost-effective solution.

Post-integration figures showed that ex-ALE employees occupied a proportionate share of both management positions and identified talents, creating a good balance going forward. A planned culture program that formed part of the integration process was postponed due to travel restrictions. The Ethics and Compliance (E&C) department directed efforts into virtual training sessions immersing new ALE colleagues into Mammoet’s standards for good business.

When COVID-19 hit, Mammoet was severely impacted by both the ensuing decline in economic activity and the sharp drop in oil & gas prices. The sector as a whole saw a fall in investments as customers postponed major projects, while much of the work in the day market was either postponed or reduced in scope. Worldwide travel restrictions, making it more difficult and sometimes impossible to mobilise people and equipment to often remote project sites also affected the business.

Regional markets were impacted in different ways. North America and Europe-Russia were able to maintain their performance thanks to the balance of different industries and service types, day market activities and projects, as well as large projects in Russia. The Asia Pacific region was also able to maintain performance despite facing COVID-19 restrictions earlier than other markets. However, the Middle East region as well as the Latin American activities depend more on projects, mainly in the oil & gas sector, and were severely affected. 

As COVID-19 restrictions were put in place, immediate action was taken to ensure the safety of all colleagues. New ways to work helped to maintain suitable distancing. Additional safety training took place and tailor-made COVID-19 Personal Protection Equipment were developed. Intensive local, regional, and global communications kept colleagues aligned and informed. And Pulse surveys were introduced to keep track of people’s well-being.

Innovation was aimed at creating new and better solutions for customers in constantly changing markets. The Focus Crane, designed to lift much heavier and larger modules in confined spaces, is now ready for use. It is designed to assist customers in modifying ever more complex refineries to produce more sustainable products, as well as to cope with stricter environmental regulations. The new SK6,000 crane has been developed for use in the offshore market, lifting modules up to 6,000t and allowing customers to build larger and more efficient modules than ever. It is suitable for the floating offshore wind sector as well, where foundations are growing larger.

The digitisation process was accelerated by investment in remote monitoring technologies and the remote operation of key equipment, both part of the Digistaal program. During the COVID-19 pandemic, this allowed the business to execute projects where local crew members are supported by specialists on the other side of the world.

As a leader in the heavy lift and transport industry, Mammoet has an important role to play in building a more sustainable future: not only by improving its own performance, but also enabling customers to meet their ambitions - many being key players in the energy transition.

Managing health and safety risk is another area of crucial importance for Mammoet and an established Safety Health Environment and Quality (SHEQ) management system meets the strictest global requirements in the field. Over the course of the year, Mammoet made its SHEQ tool, Airsweb, available to all locations, standardising safety policies and raising overall quality. All new staff received training via the in-house Mammoet Academy, ensuring consistency in operational procedures to guarantee the safe execution of work.

Mammoet also follows a robust, risk-based Ethics and Compliance program. Considering the countries and industries in which Mammoet is active, a focus remains on the key areas of anti-bribery and corruption and trade sanctions. Processes such as the screening of agents and clients, and the close monitoring of US and EU sanctions against specific countries, continued as normal.

The impact of COVID-19 determined that the main focus would centre on the human aspects of change and new ways of working. Next to that, talent pools and succession plans were updated and the integration of HR processes remains on track.

Activities in the areas of diversity and inclusion, performance management, learning and development, talent management, compensation and benefits, and data-driven HR all continued. Seven out of nine regional management boards met the target of including at least one member from a non-dominant nationality, and female participation increased.

The litigation on the NY Wheel project continues in the courts of New York and is facing delays in view of procedural matters; a court decision on the merits of the case is not expected prior to 2022. A ruling in the Amuriyah arbitration is expected around May 2021.

Mammoet returned positive operational results but realised a negative net income as COVID-19 forced down oil & gas prices and market circumstances became very challenging. With projects postponed, the resulting gaps in workload caused equipment to stand idle, losing economies of scale. Significant reorganisations and divestments of equipment prevented further losses and provided a solid foundation for the future.