Rotterdam - Dutch dredging and heavylift company Boskalis has reported a significant decline in its operating result in the first half of 2019. The half-year results are burdened by offshore projects.
Boskalis achieved a net profit of € 1.3 million in the first half of the year. Ebitda totalled 135.7 million euros, while in the first semester of 2018 it had reached 167.2 million euros.
A strong decline of the result was caused by operational and contractual issues on a limited number of offshore projects, partly in decommissioning but mostly in offshore wind cables, writes a company’s statement. In the offshore wind market circumstances have changed as a consequence of the move to zero subsidies and increased competition. This has resulted in a recent and unexpected change in the attitude of clients, which is reflected in a sharp increase in the number of disputes and protracted claim negotiations.Within the Dredging & Inland Infra segment, revenue increased with the strongest growth realized outside Europe. Large projects in progress in Oman, Singapore, Canada and the Indian subcontinent contributed to this. The results were virtually stable compared to the same period last year.