Boskalis maintains 2016 profit outlookCompany News // November 11, 2016
Royal Boskalis Westminster closed the third quarter of 2016 in line with expectations. Revenue and operating profit were higher than the average seen in the first two quarters of the year. The increase was attributable to the contribution from offshore activities acquired from VolkerWessels, which are consolidated with effect from the third quarter. Adjusted for these activities there was a slight decline in revenue and operating profit compared to the average seen in the first two quarters of the year. Adjusted for acquisitions there was a substantial decline in revenue and operating profit compared to the third quarter of last year, in line with expectations. 2015 as a whole was an exceptionally good year with high fleet utilization and particularly good project margins.
Boskalis said market conditions remain persistently difficult in the dredging sector and in offshore Energy, putting pressure on volumes and prices. The company's orderbook increased to Euros2.9 billion, up 8 per cent compared to end-June, with the increase wholly attributable to the addition of the offshore activities of VolkerWessels. Expectations for the remainder of the year remain unchanged. For 2016 as a whole Boskalis expects the operating net profit in the second half to approach the level achieved in the first half of the year.
The offshore energy diviison had a good third quarter on balance, supported by the contribution from the offshore activities acquired from VolkerWessels. Revenue and the result at the segment rose compared to the previous quarters. Excluding the contribution from the VolkerWessels activities revenue and the result were slightly lower compared to the average seen in the first two quarters of the year.
Boskalis said the sharply contracting market and increased competition is putting increasing pressure on utilization and margins at the capacity-driven marine services activities. By contrast new opportunities are opening up in the offshore wind energy market, partly thanks to the offshore activities recently acquired from VolkerWessels. In the third quarter Boskalis secured the contract for the construction of the Aberdeen offshore windfarm as well as numerous smaller contracts. The order book of offshore energy was higher as a result of the VolkerWessels acquisition; adjusted for this consolidation effect the orderbook declined compared to mid-2016 levels.