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.
“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.”