Marine contractor Boskalis recorded a net loss of €41m in first half of this year, down from a €34.5m profit for the same period in 2018.
The “strong decline in the result”, which is based on figures adjusted for extraordinary income and charges after tax of, was caused by operational and contractual issues on several of offshore wind cabling projects, the company said.
Earnings before interest, tax, depreciation and amortisation in the first half of the year stood at €136m compared with €167m in the same period for last year.
Boskalis chief executive Peter Berdowski said: “Under pressure from the disappearance of subsidies on wind farms, clients are keenly looking for ways to reduce costs.
“This has resulted in a considerably more tense situation in the execution of projects and an accumulation of disputes on projects and lengthy claim procedures.
“Although we are confident that we will be able to recover a large proportion of the outstanding claims in the future, we have prudently taken provisions on a limited number of offshore projects, whereby we reviewed the entire offshore portfolio.”
To respond more effectively to changes in the offshore wind market, Boskalis said it has “tightened the organisation of its offshore energy division, particularly in subsea cables”.
The provisions had a “major impact” on the earnings of the offshore energy division in the first half of the year resulting in a loss, “despite the stable revenue and the decent occupancy of the vessels” stated the company.
Boskalis expects a positive contribution from the division in the second half of 2019.
“We see clear signs of recovery for the medium term,” the company stated.
Capital expenditure in 2019 is expected to be slightly more than €250m, excluding acquisitions, and will be financed from the company’s own cash flow.