Netherlands-based dredging and offshore services company Royal Boskalis Westminster will cut 650 employees worldwide and will put 24 vessels out of service due to cost reduction and restructuring program. The decision of the company is based on recently completed fleet rationalization study, which assessed and analyzed how the company can continue operations during the prolonged downturn in energy and commodity markets. The company suffer from low liquidity and increasing debt, due to lack of contracts and stagnation in offshore oil sector. Royal Boskalis Westminster will cut 150 Dutch staff, who will be compensated according to the company social policy and agreements. With the reduced staff and fleet, the company will remain healthy going forward.
“The volume of work in the market has fallen sharply and this is putting pressure on the utilisation rate of our vessels. Because we expect these market conditions to persist in the coming years, it is essential that we adapt the size and composition of our fleet to this new reality”, said the CEO of Royal Boskalis Westminster, Peter Berdowski.
Ten vessels including trailing suction hopper dredgers and cutter suction dredgers will be signed-off by the company’s dredging division, and 14 vessels including anchor handling tugs and heavy transport vessels will be signed-off by offshore energy division. The vessels will either be laid up or sold for demolition if aged over 30 years. The ships will be scrapped at yards certified in accordance with the Hong Kong Convention and with Boskalis’ own standards.
Royal Boskalis Westminster NV is a Netherlands-based company that provides services relating to the construction and maintenance of maritime infrastructure on an international basis. The company has one of the world’s largest dredging fleets.