Boskalis expects revenue from its offshore energy operations to decline in 2017, despite the business unit increasing revenue last year.
The Dutch company said the outlook for 2017 is “less favourable” for the sector.
“Following the conclusion of a number of long-term contracts from previous years and the completion of several large offshore wind farm projects revenue will decline and be more dependent on the spot market, where margins remain under continued pressure,” Boskalis said in its 2016 results.
Last year, revenue was boosted by the addition of the offshore activities acquired from VolkerWessels, it said.
“These activities also made a good contribution to the result. The remaining activities made a reasonable to good contribution despite the deteriorated market conditions,” Boskalis added.
Overall the company made a loss last year of €564m, compared with a profit of €440m in 2015.
Revenue was down 20% at €2.6bn from €3.24bn the previous year.
Boskalis chief executive Peter Berdowski said: “After the best two years in Boskalis’ history, we found ourselves over the course of 2016 increasingly faced with the reality of the current market conditions, particularly in the offshore market.
“The analyses carried out for our new business plan point out that a rapid recovery in the offshore market is not expected.
“And so where necessary we are adapting the organisation to this new reality with further improvements in efficiency and effectiveness.”
Image: Boskalis
