Boskalis expects the coronavirus pandemic will negatively impact its business and financial results in 2020, stating it is “currently impossible” to quantify the extent.
The offshore wind contractor has opted not to schedule a dividend proposal for the financial year 2019 and to suspend its share buy-back scheme from next week given the “uncertainty” over the public health emergency sweeping the globe.
The measures will preserve the strong financial position “as much as possible”.
Boskalis said: “In view of the project-based nature of a significant part of our activities along with the uncertain conditions, it is difficult at this early stage of the year to make a specific quantitative statement about the projected annual result for 2020.”
The company has increased its “strong focus” on cash generation and preservation, undertaking initiatives aimed at minimising the non-project related out of pocket expenses, optimising the working capital and halving 2020 capital investment to €200m, including dry dockings.
The company entered this year with a “record-high” order book and a “very strong” balance sheet. Its cash position at 31 December 2019 was €400m with a positive net cash financial position of €26m.
Boskalis said its net financial position as of 1 April 2020 was “slightly better” than the cash position held at year-end providing financial headroom of more than €950m.
Boskalis will publish its first quarter 2020 trading update on 13 May 2020 and will hold its AGM on 30 June 2020.
Meanwhile the company is taking “maximum precautions” to ensure the health, safety and well-being of its employees and is simultaneously taking all necessary steps to continue its business.
In the affected countries and regions, Boskalis employees are working remotely from home where possible.
For staff working on international projects and vessels customary crew and project staff rotations have been suspended as of 16 March.
The company stated: “To date, precautionary measures taken by most countries have not resulted in a shutdown of infrastructure projects and the import of goods vital for our projects is permitted.
“As a consequence, Boskalis been successful in keeping its business activities operational around the world.
“This is only made possible through the impressive flexibility and commitment of our employees”.