Damen Chief Executive Officer Réne Berkvens: Turnover is usually healthy and balanced, revenue is under stress
Damen Shipyards Group uploaded a bottom line of EUR 17 million (concerning $19 million) for 2018. This is the very first time in 15 years that the Dutch shipbuilder has actually revealed losses.
Damen records that its monetary circumstance originates from a continual duration of trouble in a variety of maritime markets and also from financial investments it has actually made in its future.
Notably, regardless of climbing oil costs, the overseas hydrocarbon markets remain to existing difficult trading problems. The nurture towage market, an essential market for Damen, is likewise underperforming as competitors in the industry puts in descending stress on costs and also yank drivers look for to settle their procedures. And, while task task has actually boosted just recently for the team’s repair service and also conversion department, revenue created continues to be reduced as the team is taking in operating losses at its gotten business Verolme, Cura çao and also Mangalia Romania.
An additional variable is the present less than normal degrees of task atDamen Schelde Naval Shipbuilding
The team’s chief executive officer, Réne Berkvens states, “Despite significant investment, over a sustained period, aimed at participation in various projects, for example the Dutch submarine and German MKS 180 programs, awards have not yet been forthcoming. Defense & 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 defense 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 challenging market problems, the shipyards team has actually remained to reserve a big quantity of tasks– worth approximately EUR 1.9 billion (concerning $2.1 billion) in 2018.
“Turnover is generally healthy,” statesBerkvens “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 labor costs in certain regions.”
Damen, with multi-market infiltration, has actually confirmed durable to unstable market problems in the past. At today time, it states many maritime markets do reveal indications of assurance consisting of cruise ship, inland delivery, public transportation, yacht and also overseas renewables.
Further elements influencing Damen’s end of year monetary outcomes consist of the shipyard team’s ongoing financial investment in centers, abilities and also workers. Among various other points, this consists of the team’s purchase of a risk in the shipyard currently called Damen Shipyards Mangalia in Romania.
“It’s a sign of the strength of our company that it continues to invest during these difficult times,” statesBerkvens “Damen, as a family business, holds a long-term view and continues to plan ahead in full confidence of better times in the future.”
