Royal Boskalis Westminster N.V. (Boskalis) has concluded a good half year with a strong increase in earnings despite ongoing COVID-19 related restrictions.
Compared to last year, revenue increased by 4.6% to EUR 1.32 billion (H1 2020: EUR 1.26 billion). Adjusted for (de)consolidation and currency effects, revenue growth was 2.7%.
EBITDA increased by 10.8% to EUR 226 million (H1 2020: EUR 204 million) and operating profit increased by 34.1% to EUR 97 million (H1 2020: EUR 72 million).
Net profit amounted to EUR 72 million compared to a net loss of EUR 96 million a year ago. There were no exceptional gains or losses in the first half of the year, where the first half-year result 2020 included exceptional charges of EUR 144 million after tax.
In the Dredging & Inland Infra segment, revenue decreased by 2.6% compared to the same period last year with a slightly lower result.
This development is partly due to continuing COVID-19 related travel restrictions and quarantine measures resulting in operational inefficiencies on certain large projects.
Furthermore, maintenance schedules for the mid- to large sized trailing suction hopper dredgers were brought forward to the second quarter, resulting in higher operational costs and a lower availability.
In view of the well-filled order book and busy schedules, it was decided to bring forward part of the maintenance planned for the second half of the year and carry it out in the first half. The largest revenue contribution came from projects in Southeast Asia, the Indian subcontinent, Canada, Denmark and the Dutch market.
Peter Berdowski, CEO Boskalis: “We can reflect on a strong first half year with a substantial increase in earnings. Certainly in light of the still restrictive COVID-19 measures, worldwide, this is a major achievement.”
“Our Dredging activities are most affected by the ongoing travel restrictions and stringent quarantine measures. Especially in Southeast Asia, COVID-19 still poses many challenges on a daily basis. Closer to home, we have been able to do a lot of work in the Netherlands and we are in full swing with the dredging work for the construction of the Fehmarnbelt tunnel that will connect Germany and Denmark. In terms of the outlook, the vessel schedule looks promisingly busy with the imminent start of major work in the Philippines. In view of the expected high fleet utilization, we have carried out extra maintenance in the first half of the year so that the hoppers are fully available to work,” added Berdowski.
Berdowski also said that after an operationally strong first half of the year and in view of the order book, Boskalis is in good shape. The second half of the year will certainly still be affected by stringent COVID-19 restrictions impacting the execution and start-up of projects, particularly in the Far East.
At Dredging & Inland Infra, work volume and fleet utilization are expected to increase, partly due to upcoming work in the Philippines, in addition to major ongoing projects in Singapore, Denmark and the Netherlands.
Click here for the full version of the 2021 half year report.