Dear colleagues,
In less than three months, we have faced disruptions at a speed and scale unprecedented in our era. Strict physical distancing, lock-downs, and the cancellation of all but essential activity have been the new normal for many among us. I would like to thank each and every one of you for your understanding, your efforts and your dedication during these very difficult weeks.
On the operational side
As encouraging signs of flattening the curve are shown in some regions, restrictions are progressively eased and, while maintaining physical distancing, a moderate level of economic activity is being restored in many countries. At BESIX, most of our activities are gradually returning to their pre-crisis pace, although possibly with timing differences between the countries due to the very heterogeneous situations around the globe.
In this context, the priority of BESIX management remains your health and safety. I therefore insist that hygiene and protection measures are fully and strictly enforced and respected, both on our sites and in our offices. Three e-learning modules “COVID-19 Awareness” have been developed to help you understand and apply these new measures; they are available to all on eAcademy.
On the financial side
Unfortunately, flattening the virus is also flattening the economy. The challenge we face is twofold. First, the virus is disturbing our entire business model by adding costs, reducing revenues and increasing uncertainty. Lockdowns and physical distancing measures have shuttered large parts of our businesses around the world. This has brought our overall profitability far below budget as our income has drastically slowed down while expenses continue to roll out.
Secondly, there was already an economic crisis before Covid-19, especially in the Middle East, and it has been made worse as soon as oil prices went down. Therefore, the order book is also affected since clients are suspending decisions or cancelling projects.
I won’t hide the fact that the forecast for end of the year is quite uncertain. This being said, we also have a strong cash position and are sufficiently liquid to deal with the crisis. In order to maintain this strong position, we had to act quickly to reduce our cash-out, restore our financial balance and, ultimately, regain control.