Royal BAM Group says it is withdrawing from all activities in the offshore wind foundations sector.
The announcement follows the company’s report of an adjusted pre tax loss of €27.2 million for the first half of 2019.
BAM said its business had been negatively impacted by higher than anticipated costs on a number of projects in Germany.
From its German interests, BAM reported total revenue of €389 million, a fall of €49 million from the same period in 2018.
The company said higher costs on construction projects – and a major civil project – had hit its bottom line by approximately €94 million.
As a result, BAM says it made the decision to halt its offshore wind foundations activities. It also reported that that move away from the wind sector has resulted in impairment charges of €10.3 million.
BAM Group’s CEO, Rob van Wingerden, said, “We regret that our results for the first half of 2019 were negatively impacted by extra costs on projects in Germany and at International as announced in July. Discussions with clients for recovery of these costs are ongoing, but the amount and timing are uncertain. As a consequence, in July we lowered our outlook for full year 2019 to an adjusted pre-tax profit margin of around 1 per cent. Our cash position remains strong, and is above the level of mid-2018.”