Results warning from Ballast Nedam
By Neill Barston09 October 2014
Netherlands-based contractor Ballast Nedam has warned its financial results for 2014 would deteriorate owing to a project overspend and “disappointing” performance of its infrastructure division.
According to its latest statement, the company’s 40% stake in the A15 Maasvlakte-Vaanplein public-private partnership road scheme led by the A-Lanes consortium, meant its losses would extend from €87 million to a projected sum of €100 million.
The major road project is estimated to be more than €30 million over budget, with costs rising from €217 million to €253 million – which has negatively affected Ballast Nedam’s liquidity.
In a further blow to the company, it anticipated that losses surrounding the project could potentially increase further. It is engaged in a dispute resolution over the contract in a bid to minimise its losses.
Consequently, the company has said it is at an “advanced stage” in pushing through the sale of a cluster of business interests in its supplies division.
Despite its project setbacks, the company said it still expected to be able to honour existing banking credit facilities and financial agreements.