Boskalis reports strong operational first half year

Royal Boskalis Westminster N.V. (Boskalis) had a very good operational first half year considering the circumstances, the company reported today.

The operating result increased sharply compared to last year with revenue at virtually the same level.

According to the release, Boskalis’ financial position remains strong and the net cash position has improved significantly since the end of 2019.

The company also added that the outbreak of COVID-19 has of course also impacted Boskalis. Operationally it is was very challenging, particularly keeping Dredging projects outside of Europe going due to prolonged travel restrictions and strict quarantine measures.

At the end of the first half year Boskalis undertook, in light of the COVID-19 pandemic and the sharp drop in the oil price, a critical review of the valuation of its vessels and balance sheet assets across the board.

This has resulted in a virtually exclusively non-cash extraordinary charge of EUR 147.8 million. This charge mainly consists of an impairment on goodwill and vessels in two joint ventures as well as of a limited number of the old own vessels earmarked for scrapping.

Revenue amounted to EUR 1.26 billion in the first half of the year, virtually the same as last year (H1 2019: EUR 1.27 billion).

EBITDA totaled EUR 204.1 million in the first half of the year (H1 2019: EUR 135.7 million) and the operating result was EUR 72.4 million (H1 2019: EUR 33.1 million negative), both adjusted for extraordinary charges.

A net operating profit of EUR 47.5 million was realized in the first half of the year (H1 2019: loss of EUR 40.9 million). Including extraordinary charges there was a net loss of EUR 96.4 million.

Within the Dredging & Inland Infra segment revenue declined mainly due to startup delays of projects.

The largest revenue contribution came from the Singapore region, the Indian subcontinent and the Middle East.

Boskalis Nederland had a strong first half of the year with Dutch Inland Infra projects contributing well to the result.

On balance, the divisional result dropped compared to the same period last year, due in part to COVID-19-related operational disruptions and a lower fleet utilization.

Boskalis’ financial position remains strong. At 30 June 2020 Boskalis was net debt-free with a net cash position of EUR 190 million, compared to a net cash position of EUR 26 million at the end of 2019. Furthermore, the solvency ratio remains high at 51%.

For the full results please see the official Boskalis release.