Boskalis result “in line with expectations” under difficult market conditions
Boskalis has announced a net profit of €147.5 million (US$166 million) in the first half of 2016 – less than half the €306 million recorded in the first half of 2015.
Revenue in the first half of the year fell by a quarter compared to the first half of last year to €1.17 billion, as a result of the deteriorated market conditions, the company said.
In the Dredging and Inland Infra segment revenue and the result declined as a result of weak market conditions, and the completion of the Suez Canal project, which made a substantial contribution to the company’s income last year.
Fleet use was also affected by the suspension of work on the Pluit project in Indonesia.
The company said its offshore energy involvement produced managed to have a good first half of the year despite market conditions with margins similar to that of last year
“At the start of the year we indicated that we are experiencing stormy conditions,” Peter Berdowski, CEO of Boskalis. “Falling prices of oil, gas and commodities are the dark clouds on the horizon that ultimately also affect late-cyclical companies such as Boskalis. The volume of work in the market has dropped significantly and a decline in revenue and the result is therefore inevitable.”