Dutch construction: COVID-19 to disrupt execution and order intake -Degroof Petercam
20/04/2020 09:01
** Degroof Petercam says expects the coronavirus pandemic to
disrupt Dutch construction sector's performance this year
** "We expect that COVID-19 will significantly disrupt
project execution in 2020 and lead to lower order intake for
2021 and later," it says
** Degroof says BAM BAMN.AS and Heijmans HEIJ.AS can
only partially offset the revenue impact through cost savings,
despite government support schemes
** The brokerage cuts PTs for BAM Group by 37% and for
Heijmans by 12.5% to 1.75 euros ($1.90) and 7 euros ($7.60)
respectively
** "Heijmans will face the same challenges as BAM, and is
more sensitive to the PFAS and nitrogen issues as it is only
active in the Netherlands," Degroof adds
** The Netherlands has taken steps to reduce the use of
environmentally harmful chemicals and Heijmans has said it has
resulted in a strong decline in construction tenders
($1 = 0.9206 euros)
(piotr.lipinski@tr.com)