Royal Boskalis Westminster (Boskalis) realised a net profit of € 1.3 million in the first half of the year (H1 2018: negative € 361.4 million). Revenue in the first half of the year increased 8.6% compared to the first half of last year to € 1.27 billion (H1 2018: € 1.17 billion). EBITDA in the first half of the year totaled € 135.7 million and the EBIT was € 9.1 million (H1 2018 EBITDA: € 167.2 million, EBIT: negative € 349.6 million).
A strong decline of the result was caused by operational and contractual issues on a limited number of offshore projects, partly in decommissioning but mostly in offshore wind cables. In the offshore wind market circumstances have changed as a consequence of the move to zero subsidies and increased competition. This has resulted in a recent and unexpected change in the attitude of clients, which is reflected in a sharp increase in the number of disputes and protracted claim negotiations. Following a thorough review of the projects in hand, provisions of slightly more than € 100 million have been made on a limited number of onerous contracts. The entire order book was reviewed when determining these provisions. Boskalis is confident that in time a substantial part of these provisions will be recovered, however has not taken this into consideration in the reported figures.
The market picture for the rest of 2019 is not fundamentally different from that in the first half year and with no further loss provisions anticipated, a strong improvement of the result is expected. The picture for the offshore energy market has not changed and the second half year is expected to be comparable to the first half year, adjusted for the onerous contract provisions.