Dutch group Damen Shipyards has logged its first annual loss in 15 years.
It posted a deficit of EUR 17m ($19.2m) for 2018, blaming "a sustained period of difficulty in a number of maritime sectors and investments it has made in its future."
Damen did not give a comparative figure for 2017.
"Notably, despite rising oil prices, the offshore hydrocarbon sectors continue to present tough trading conditions," it added.
The key tug market is also under-performing due to consolidation among operators.
And, while project activity has increased recently for the repair and conversion division, profit generated remains low as it absorbs operating losses at recently acquired companies Verolme, Curacao and Damen Shipyards Mangalia in Romania.
The latter has given it a foothold in the cruiseship, ro-pax and large OSV sectors.
Orders continue to come in
It continued to book a large amount of projects worth about EUR 1.9bn last year, however.
CEO Rene Berkvens said: “Turnover is generally healthy. 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 labour costs in certain regions.”
It pointed to signs of promise in cruiseships, inland shipping, public transport, yachting and offshore renewables.
Berkvens added: "We feel it is crucial that we continue to invest in our personnel and in maintaining employment opportunities.
"Only in this way can we be sure that, when the markets do eventually recover, both Damen and the Netherlands retain their access to the skills and knowledge necessary to maintain a successful shipbuilding industry.”
Damen operates 36 shipbuilding and repair yards.