Dutch offshore and dredging services giant Boskalis reported a net profit of 75.1 million euros for the first half of 2017.
The profit nearly halved from 147,5 million reported in the corresponding quarter of 2016.
Boskalis’ revenue was slightly lower than $1,1 billion, , down from 1,17 billion euros recorded in the first half of 2016.
While Boskalis boasted with solid performance in its Dredging & Inland Infra segment, the Offshore Energy segment revenue declined.
The decline was, Boskalis said, due in part to poor market conditions in the oil and gas industry.
In addition, it added, there are no major offshore wind farm projects in progress this year, whereas the construction of two sizable wind farms contributed to revenue and the result last year. The VBMS cable-laying activities had a good first half of the year, making a significant contribution to the division’s results, the company said.
Peter Berdowski, CEO of Boskalis: “Developments in the first half of the year were in line with expectations. The results of the traditional dredging activities were stable with higher fleet utilization rates. The outlook is moderately positive given the volume of work in the market and an increase in the order book. As expected, the situation in the offshore market resulted in a further drop in the result. We do not foresee a quick recovery in the offshore market, as previously stated, and have adjusted our fleet and organization to this new reality.
“The weak offshore market also presents clear opportunities for us to strengthen the company, as evidenced by the recently announced acquisition of Gardline. This acquisition will specifically help fulfill our strategic ambition to build a position in offshore survey. Gardline is a key player in the survey market with years of experience and a strong reputation.
“The acquisition will enable us to further position ourselves for opportunities in offshore wind energy, as well as to be well placed to take advantage of growth opportunities when the offshore market picks up again. In the coming period we will continue to look actively at opportunities to strengthen and expand the company in the medium term.”