Damen reports first loss in 15 years

The Dutch shipbuilder said “its financial situation stems from a sustained period of difficulty in a number of maritime sectors and investments it has made in its future.”

Damen reports first loss in 15 years

The Dutch shipbuilder said “its financial situation stems from a sustained period of difficulty in a number of maritime sectors and investments it has made in its future.”

Damen reports first loss in 15 years

The Dutch shipbuilder said “its financial situation stems from a sustained period of difficulty in a number of maritime sectors and investments it has made in its future.”

 

   Dutch shipbuilder Damen Shipyards Group posted a net loss of 17 million euro ($19.12 million) in 2018, which marked the first time in 15 years the company announced a loss.
    Damen said in a statement “its financial situation stems from a sustained period of difficulty in a number of maritime sectors and investments it has made in its future.”
    The company’s offshore hydrocarbon sectors presented tough trading conditions and its harbor towage sector also underperformed as competition in the marketplace exerted downward pressure on prices and tug operators sought to consulate operations, Damen said.
    Project activity in the group’s repair and conversion division increased, but profit remained low as Damen absorbed the operating losses at its acquired Verolme, Curacao, and Magnolia, Romania, locations, Damen said.

   The shipyard group booked about 1.9 billion euro ($2.14 billion) of projects in 2018.
    “Turnover is generally healthy,” CEO Réne Berkvens said in a statement released Thursday. “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.”

We are seeing many more pricing requests for Southeast Asia and the Indian subcontinent. Few actually moved their supply chains outside of China because this will take time, especially for larger shippers. However, Taiwan and South Korea are in a unique situation: Some manufacturing had shifted to mainland China in the last decade due to lower costs, but that infrastructure is still in Taiwan and South Korea. Some manufacturing may temporarily shift back there until Southeast Asia infrastructure catches up. 

Seven container liner shipping companies deploy capacity on the India Subcontinent to North America (US/CA) trade, with Maersk Line deploying the most capacity each week towards the trade, according to BlueWater Reporting’s Carrier/Trade Route Deployment Report.

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Damen reports first loss in 15 years

The Dutch shipbuilder said “its financial situation stems from a sustained period of difficulty in a number of maritime sectors and investments it has made in its future.”

Apr 19, 2019 on Dec 27, 2018AmericanShipper.com

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Damen reports first loss in 15 years

The Dutch shipbuilder said “its financial situation stems from a sustained period of difficulty in a number of maritime sectors and investments it has made in its future.”

Apr 19, 2019 on Dec 27, 2018AmericanShipper.com