Royal Boskalis Westminster N.V. (Boskalis) has seen a profit drop of 52 percent in the first half of 2016 as the weak market affected company’s revenue by close to €400 million.
For the first six months ended June 30, 2016, the Dutch dredging and marine specialist generated net income of €148 million, or €1.17 per share, on revenue of €1.17 billion, versus net income of €307 million, or €2.50 per share on revenue of €1.57 billion in the corresponding period in 2015.
Revenue fell 25% from the prior-year comparable period as a result of the deteriorated market conditions.
Boskalis reported first half 2016 EBITDA of €317.6 million, down from a year-earlier result of €500 million.
The previously announced fleet rationalization program is expected in the next two years. The company said it will involve vessels being taken out of service and the loss of 650 jobs, as well as reducing costs of the global office network.
“We foresee that the current market environment may persist for several years. We have therefore taken the necessary steps to adjust the size and composition of the fleet to this new reality. As previously announced we will take 24 vessels out of service in the 2016-2018 period and consequently have to let go of a large number of employees. These are drastic measures that unfortunately need to be taken to ensure that Boskalis remains healthy going forward,” said Peter Berdowski, CEO of Boskalis.
The company’s order book increased to € 2,7 billion, compared to €2.5 billion at the end of 2015.
Subsea World News Staff