Dutch offshore and dredging services giant Boskalis returned to profit in 2017 from a loss booked in 2016 despite lower revenues from the offshore energy part of business.
Boskalis achieved a net profit of EUR 150 million in 2017. This compares to a net loss of EUR 564 million in 2016 as a result of EUR 840 million of non-cash impairment charges.
The company’s revenues in 2017 declined by 10 per cent to EUR 2.34 billion compared to EUR 2.60 billion in 2016.
Revenue in the Offshore Energy segment amounted to EUR 966.7 million with just over 50% being contracting related, and the balance coming from services. This is a decrease compared to 2016 and revenues of EUR 1,333.7 million.
Boskalis explained that revenues at the Offshore Energy segment declined further compared to previous years, due in part to the poor market conditions in the oil and gas industry. The various activities nevertheless made a reasonable to good contribution to the result.
Offshore Energy earnings were in line with the first half of 2017, with an operating results for the full year of EUR 85 million compared to EUR 209.5 million in 2016. The decline relative to last year reflects the poor market conditions in the oil and gas industry.
Boskalis’ order book increased to EUR 3.50 billion at the end of 2017 compared to EUR 2.92 billion at the end of 2016.
According to the company, the market picture for the next two years will be characterized by continued lower volumes of work and pressure on both utilization levels and margins.
Peter Berdowski, CEO of Boskalis said the company does not yet foresee a fundamental recovery in its markets in the coming years.
“In the short term we do however expect opportunities for selective growth and a subsequent structural recovery for the period thereafter,” Berdowski added.
The company’s capital expenditure in 2018 is expected to be around EUR 250 million.
Offshore Energy Today Staff