Offshore wind contractor James Fisher and Sons has anticipated a 10% drop in revenues in its half year post close trading update, compared with the first half of 2019.
Group revenue in the second quarter was 18% lower than the comparative period in 2019.
In James Fisher and Sons’ marine support division, subsea service projects have been deferred, in both renewables as well as in oil and gas, together with “supply chain challenges” across all businesses, due to Covid-19.
The company said the division’s financial performance will be lower in the first half, year-on-year, as a result, despite the ship-to-ship oil transfer business trading strongly during the period.
James Fisher and Sons has taken the decision to restructure the division, reduce the cost base and “refresh” the management structure, which will provide “clearer strategic and operational direction” going forward.
The group’s balance sheet includes net debt estimated at approximately £175m (€190.5m) at 30 June 2020, compared to £203m at the year end.
In the first half of 2020, James Fisher and Sons increased its committed lending facilities by £50m to £300m.
“Strong cash management and the deferral of payments for dividends, taxes and pensions, together with tight control of costs and capital expenditure, has seen headroom under committed facilities increase from £42m at 31 December 2019 to over £100m at 30 June 2020,” said the company.
Due to the uncertainties surrounding its markets at the time of its AGM on 30 April, James Fisher and Sons withdrew financial guidance for the year.
The group’s half year results are scheduled to be announced on 25 August 2020.