In its third quarter results, Royal Boskalis Westminster confirmed that the first of its 11 “heavily loss-making” heavy transport vessels will be scrapped in the fourth quarter.
As HLPFI reported here, Boskalis decided to remove 11 of its heavy transport vessels from service due to the worsening market for its low-end transport activities.
Compared to the first half of the year, the offshore energy division performed better in the third quarter, said Boskalis, partly due to the decision to terminate the low-end transport activities.
“Revenue and the segment result both rose compared to the previous quarters. Nevertheless, market conditions remain challenging and the first signs of recovery in the market have so far only had a limited effect on work in progress.”
The company’s marine transport and services activities also had a reasonable quarter, said Boskalis. “Despite the continuing pressure on volumes, utilisation of the heavy transport vessels was stable compared to the first half of the year.”
Barring unforeseen circumstances net operating profit in the second half of the year is expected to be sharply higher compared to the first half, which reached EUR34.5 million (USD39.7 million).
However, the Dutch company added that it does not expect to match the EUR75 million (USD85 million) level achieved the second half of 2017.