Boskalis recorded a net profit of €75m for 2019, turning around a year-ago loss of €436m, despite suffering a softening across key earnings metrics, according to newly-published results.
EBITDA came in at €376m, slightly above expectations from €354m in 2018, while EBIT was €111m, down from €119m. Both were adjusted for extraordinary changes.
“The decline in the result was mainly due to a poor first half of the year for the Offshore Energy division, with operational and contractual issues at a limited number of offshore wind cable and decommissioning projects,” said Boskalis.
“Following a thorough analysis of the project portfolio, provisions of more than EUR 100 million were taken in the first half of the year with respect to a limited number of contracts.”
The seabed intervention and survey activities made a “sharp contribution” to the result this past year.
In the second half of the year Boskalis was awarded an important offshore wind project in Taiwan, leading to the decision to invest in a second crane vessel.
Boskalis chief executive Peter Berdowski said: “A number of the offshore energy activities are showing signs of recovery. We are seeing a higher level of activity at survey, heavy marine transport and seabed intervention.
“In addition we have been awarded a strategically important offshore wind energy project in Taiwan. Due in part to this project we have decided to invest in a new, innovative crane vessel that will enable us to install extremely large foundations. This investment will further strengthen our position in the wind energy market.”
The result in both 2019 and 2018 was impacted by various extraordinary items, said Boskalis, which related to a book profit on the sale of two harbour towage joint ventures as well as the sale of equipment last year. In 2018 these items related to considerable non-cash impairment charges.
Boskalis stated its financial position remains “strong” and improved “considerably” in the second half of the year.
At the end of last year Boskalis was net debt-free with a net cash position of €26m, compared to a net debt of €420m six months earlier. The solvency ratio remains high at 54%.
Berdowski added: “We were able to end 2019 well after a difficult first half of the year.
“Due to these results and the proceeds from divestments we ended the year net debt-free. This is no small feat in light of the difficult market conditions over the past few years and the investments and acquisitions we made.”