Germany's Bilfinger returns to second-quarter net profit, confirms full-year outlook

  • Net profit over the second quarter came in at 12 million euros ($13.7 million), up from a loss of 7 million euros in the same period last year.
  • Bilfinger Chief Executive Thomas Blades told CNBC's "Squawk Box Europe" on Tuesday that a considerable increase in the firm's orders during the second quarter should be seen as evidence the company is back on the right track.
  • Shares of Bilfinger were marginally lower shortly after the opening bell on Tuesday morning.

German engineering services giant Bilfinger reported a rise in second-quarter net profit on Tuesday, underpinned by an uptick in demand for oil and gas.

Net profit over the second quarter came in at 12 million euros ($13.7 million), up from a loss of 7 million euros in the same period last year. Revenues increased 6 percent to come in at 1.1 million euros.

The company also reaffirmed its full-year outlook for 2018, saying revenue development was likely to remain organically stable over the coming months.

Bilfinger Chief Executive Thomas Blades told CNBC's "Squawk Box Europe" on Tuesday that a considerable increase in the firm's orders during the second quarter should be seen as evidence the company is back on the right track.

"We have built up momentum, we think we can continue that and, of course, then translate those orders into revenue and ultimately, of course, into earnings. So, I think we're showing that our Strategy 2020 is delivering the results that we promised," Blades said.

Turkey troubles

When asked whether concerns over the ongoing financial turmoil in Turkey had reached the boardroom, Blades replied: "Yes… (But) Turkey is an opportunity, one where we haven't yet developed a lot of momentum… We are keeping, let's say, a watchful eye before actually making an entry into that country."

Turkey, which is one of the 10 countries Bilfinger provides industrial services for in the Middle East, is currently in the midst of an economic crisis, with the country's currency in freefall.

The lira has tumbled around 33 percent since the start of the year, on the back of large fiscal stimulus, growing inflation and a hefty account deficit. Most recently, a diplomatic spat with the U.S. has exacerbated Ankara's financial turmoil.

Shares of Bilfinger were marginally lower shortly after the opening bell on Tuesday morning.