Gas services firm Balfour Beatty CLG swings to loss
Rising costs and a lack of spending on infrastructure saw Irish engineering group Balfour Beatty CLG swing to a €250,000 loss in 2017, it said in accounts just publicly filed for the business. It had made a €1.5m profit the previous year.
The company - a joint venture between UK engineering giant Balfour Beatty and Irish firm CLG - maintains and installs gas infrastructure for Gas Networks Ireland, its only client.
The joint venture was awarded a €500m, nine-year contract by Gas Networks Ireland in 2011.
The contract commenced in 2012 and expires in 2021.
Balfour Beatty CLG directors said that 2017 had been a "challenging year" for the company, and that it incurred "significant cost increases" in the period.
"Management are currently addressing these cost increases to return the company to profitability in the near future," they added.
The accounts note that the firm continued to generate losses into 2018.
The directors also pointed out that Gas Networks Ireland has experienced low levels of infrastructure spend.
"The lack of capital spending by the Irish government has had an effect on the volume of work coming through from our client to bring on stream any major projects, for example to bring mains gas to towns and villages across the country," noted the Balfour Beatty CLG directors.
Balfour Beatty CLG employs more than 300 people.