The Netherlands: Boskalis Posts Results for First Half 2012

Business & Finance

August 16, 2012

Royal Boskalis Westminster N.V. (Boskalis) reported a 12% increase in revenue in the first half of the year to EUR 1.4 billion (first half of 2011: EUR 1.25 billion).

Organic revenue growth was 5%. Net profit declined to EUR 102.5 million (first half of 2011: EUR 114.1 million). Compared to the end of 2011 the order book increased and stood at EUR 3,753 million (end-2011: EUR 3,489 million).

The first half year EBITDA amounted to EUR 255 million and the operating result (EBIT) equaled EUR 146 million (first half of 2011: EBITDA: EUR 277 million, EBIT: EUR 163 million). The decline was largely due to lower results at the Dredging, Maritime Infrastructure and Dry Infrastructure segments. Conversely, Harbour Towage and Salvage, Transport & Heavy Lift had a good first half of the year with a high level of activity and a rise in operating result.

Peter Berdowski, CEO of Boskalis:

“In the prevailing market we had a fine performance in the first half of the year with record revenue and an all time high order book. In addition, the utilization level of the dredging fleet was good. We are clearly reaping the benefits of the addition of SMIT – both in terms of the financial contribution and with respect to new market initiatives, particularly in the field of Offshore Energy.

For the remainder of the year our well-filled order book bodes well for the utilization of the vessels. Market conditions are not expected to change substantially in the short term. We see opportunities particularly in the offshore energy market and in port developments.”

Half Year Report 2012

Market developments

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. In various regions around the world and in different market segments we are currently seeing clients develop initiatives for new infrastructure projects. This applies particularly to energy and commodity-related projects in South America, West Africa and Australasia, and to port developments outside of Europe.

Developments in the offshore energy market are important for a substantial part of our business. Following on from demand for and the construction of new oil and LNG import en export terminals, the terminal activities (Smit Lamnalco) are expected to grow.

In addition, developments at Transport, Heavy Lift and Subsea largely depend on an upturn in demand from energy markets, in particular from the offshore energy market in Northwest Europe, Brazil and Southeast Asia.

Outlook

The Board of Management expects the company’s development in the second half of the year to be in line with the first half of the year, barring unforeseen circumstances. Net profit for 2012 is estimated at around EUR 210-230 million.

The financial position of Boskalis is very solid. Capital expenditure is expected to exceed EUR 325 million in 2012 and to be financed from the company’s own cash flow.