Damen Shipyards Group reported a bottom line of 17 million euro in 2018, noting the very first that the independently possessed Dutch shipbuilder has actually reported a loss in the last 15 years.

Damen claims the bottom line was because of “a sustained period of difficulty” in a variety of essential maritime fields, purchases and also financial investments in future programs that must profit the business.

“Notably, despite rising oil prices, the offshore hydrocarbon sectors continue to present tough trading conditions,” Damen clarified in its statement. “The harbour towage sector, a key market for Damen, is also underperforming as competition in the marketplace exerts downward pressure on prices and tug operators seek to consolidate their operations. And, while project activity has increased recently for the group’s repair and conversion division, profit generated remains low as the group is absorbing operating losses at its acquired companies Verolme, Curaçao and Mangalia Romania.”

Damen stated an added variable is the present less than typical task degrees at Damen Schelde Naval Shipbuilding

The team’s chief executive officer, Réne Berkvens remarks, “Despite significant investment, over a sustained period, aimed at participation in various projects, for example the Dutch submarine and German MKS 180 programmes, awards have not yet been forthcoming. Defence & security projects are a critical factor, not only for the success of Damen, but also for the navy and for the maintenance of a domestic defence industry within the Netherlands. On numerous occasions historically, the Royal Netherlands Navy has showed a progressive and innovative approach, serving as the launching customer for naval technologies that have gone on to be used by navies throughout the world. Because of this, we have at Damen and within our research institutes and universities, a wealth of knowledge that it is a vital element of our economy and an asset to the country.”

Despite the tough market problems, the Damen claims it has actually remained to reserve a big quantity of tasks worth around 1.9 billion euro in 2018. The team additionally kept in mind that it sees indications of renovation in a variety of maritime fields, consisting of cruise ship, inland delivery, public transportation, yacht and also overseas renewables.

Summing up the year-end monetary outcomes, Berkvens mentioned: “Turnover is generally healthy. The difficulty is that, despite high levels of activity, profit is under pressure from a combination of factors including vessel oversupply in some markets, fierce competition and increasing labour costs in certain regions.”

Additional variables influencing Damen’s yearly outcome consist of the shipyard team’s ongoing financial investment in centers, abilities and also employees. Amongst various other points, this consists of the team’s procurement of a risk in the shipyard currently referred to as Damen Shipyards Mangalia inRomania Damen has actually additionally gone into the cruise ship, RoPax and also huge overseas vessel building and construction markets and also prepares itself better for involvement in future massive protection and also protection agreements.

“It’s a sign of the strength of our company that it continues to invest during these difficult times,” clarifiesBerkvens “Damen, as a family business, holds a long-term view and continues to plan ahead in full confidence of better times in the future. In addition to preparing for this via a programme of continued acquisition and facilities development, we feel it is crucial that we continue to invest in our personnel and in maintaining employment opportunities. Only in this way can we be sure that, when the markets do eventually recover, both Damen and the Netherlands retain their access to the skills and knowledge necessary to maintain a successful shipbuilding industry.”