Boskalis Expects Record Profit in 2013 (The Netherlands)
Royal Boskalis Westminster N.V. realized a net profit of EUR 123 million in the first half of 2013 (H1 2012: EUR 102 million). Dockwise contributed EUR 15 million to this result.
Revenue rose by 12% in the first half to EUR 1.6 billion (H1 2012: EUR 1.4 billion). Organic revenue growth was 4%.
EBITDA in the first half of the year amounted to EUR 297 million and the operating result (EBIT) was EUR 155 million (H1 2012: EUR 254 million and EUR 145 million, respectively). The results of Dockwise have been fully consolidated from the second quarter, which largely explains this increase. The Dredging segment realized a higher result while the result at Offshore Energy, adjusted for the contribution from Dockwise, was slightly lower than in the same period last year. The results at the Inland Infra and Towage & Salvage segments were in line with the results achieved in the same period last year.
At the end of the first half of the year the order book including Dockwise stood at EUR 4,525 million (end-2012: EUR 4,106 million).
Peter Berdowski, CEO Boskalis:
“We look back on a busy first half of the year in which we delivered a good operational performance but also took an important strategic step with the acquisition of Dockwise. This combination allows us to strongly expand our position in the offshore energy sector and offer new perspectives to both our clients and our staff. We have already made a good start with the integration of the two companies.
Within the Group we are also seeing how the various activities supplement and reinforce each other. Dredging combined with SMIT Salvage in India, offshore ordnance clearance in northern Germany using dredging and subsea services, and very recently SMIT Salvage with Dockwise in an initial dry-docking project involving the Vanguard.
The market conditions in the first six months of the year remained challenging but in spite of this capacity utilization of the large ships was good and we managed to keep the order book well filled, as a result of which we expect to achieve a healthy capacity utilization of the fleet for the remainder of the year. With this prospect, as well as the book gain we will realize in the second half of the year from the sale of our 40% stake in Archirodon, we expect to close the year with an all-time high net profit.”
The markets in which Boskalis operates are driven in the long term by growth in global trade, energy consumption and the world’s population, as well as by the effects of climate change.
The medium-term picture is mixed for the markets in which Boskalis operates. On the one hand Boskalis is seeing continued reluctance on the part of governments, particularly in Europe, to invest, and large-scale commodities-related projects are increasingly under pressure globally due to the falling commodity prices. On the other hand Boskalis is seeing initiatives for infrastructure projects being developed in various regions of the world and across the different market segments. This applies in particular to energy-related projects in South America, Africa and Australasia, land reclamation projects in Asia and port developments outside of Europe.
Market developments in the offshore energy market have a bearing on a substantial part of the business. Boskalis expects demand for and construction of new oil and LNG import and export terminals (Dredging and Dockwise) to lead to growth in terminal services (Smit Lamnalco).
Other than that, developments at Offshore Energy are strongly dependent on an upturn in demand from the energy markets, particularly those in Brazil, the United States, Mexico, Africa and Southeast Asia.
In 2013 Boskalis expects prevailing market conditions to once again have a dampening effect on the structurally positive trends that underpin the strategy. Current information suggests that there will be no major change to the market picture during the remainder of 2013 compared to the first half of the year.
The Board of Management expects that, barring unforeseen circumstances, net profit for the 2013 financial year will be at least EUR 330 million, including the book gain of approximately EUR 50 million on the sale of the 40% stake in Archirodon that will be accounted for in the second half of the year.
Capital expenditure in 2013 is expected to be around EUR 330 million, including the commitments of Dockwise, and will be financed from the company’s own cash flow.
Press Release, August 16, 2013