Considerable loss for BAM, Boskalis stable

The largest construction company in the Netherlands, BAM, is not in good shape after the past six months. There was a net loss of โ‚ฌ235 million, the company has announced.

In April and May, the company only operated at 65 percent of its full capacity. According to the top executive, private commercial real estate developers are reviewing their construction plans, leading to less work in the short term. BAM’s turnover in the second quarter was almost a fifth lower than in the previous year.

By now this has increased to almost 90 per cent. According to Den Houter, one of the reasons for this is the government’s help, which has meant that there’s still work to be done in the infrastructure. “The infrastructure markets remain positive due to government investment programmes aimed at stimulating the economy”

Ramp with metro line

In June, BAM arranged with the city of Cologne and the Cologne public transport company for โ‚ฌ200 million. Much of that amount was covered by the company’s insurance policies, but there still remains a cost item of โ‚ฌ36 million that depressed the results for the first half of the year.

International it gets less

There were further losses from the international branch of the construction company, which took another EUR 56 million bite out of the results. BAM International has been making losses time and time again in recent years, and the problems in the oil industry and the low oil price have not made it any better.

Because the company thinks it can’t turn the tide internationally, it has decided to reduce its activities outside Europe. Whether jobs will disappear in the process, and how many of them there would be, is not yet clear. The company is now discussing this with the works councils and trade unions.

Boskalis on course

The loss is entirely due to large incidental costs, as it is called. For example, Boskalis’ vessels became worth less due to the difficult circumstances of recent months. As a result, the company had to withdraw almost 150 million euros of the value.

Well, the company deserved more from the work it has done over the past six months. As a result, the net profit without the above mentioned write-downs on, among other things, the ships, was about 48 million euros.