Boskalis posts lower result in line with expectationsCompany News // August 17, 2017
Royal Boskalis Westminster realized a net profit of Euros 75.1 million in the first half of 2017 (H1 2016: EUR 147.5 million). Revenue in the first half of the year declined by 7 per cent compared to the first half of last year to Euros 1.09 billion (H1 2016: EUR 1.17 billion). Adjusted for consolidation, deconsolidation and currency effects, revenue was down by 13 per cent.
EBITDA in the first half of the year was Euros 225.1 million and the operating result was Euros 101.7 million (H1 2016 EBITDA: Euros 317.6 million, operating result: Euros 182.4 million).
Revenue from offshore energy revenue declined, due in part to poor market conditions in the offshore oil and gas industry. In addition there were no major offshore windfarm projects in progress in the year. Cable-laying activity at VBMS saw a good first half of the year, making a significant contribution to the division's results.
Boskalis ais its financial position continues to be strong, with a solvency ratio of 62.6 per cent and a positive net cash position of Euros 235 million. Its orderbook, excluding its share in the orderbook of joint ventures and associated companies, increased to Euros 3.246 billion at the end of the first half of the year (end-2016: Euros .924 billion).
Peter Berdowski, CEO of Boskalis, said "Developments in the first half of the year were in line with expectations. The results of the traditional dredging activities were stable with higher fleet utilization rates.
"The outlook is moderately positive given the volume of work in the market and an increase in the order book. As expected, the situation in the offshore market resulted in a further drop in the result.
"We do not foresee a quick recovery in the offshore market, as previously stated, and have adjusted our fleet and organization to this new reality.
"The weak offshore market also presents clear opportunities for us to strengthen the company, as evidenced by the recently announced acquisition of Gardline. This acquisition will specifically help fulfill our strategic ambition to build a position in offshore survey. Gardline is a key player in the survey market with years of experience and a strong reputation.
"The acquisition will enable us to further position ourselves for opportunities in offshore wind energy, as well as to be well placed to take advantage of growth opportunities when the offshore market picks up again. In the coming period we will continue to look actively at opportunities to strengthen and expand the company in the medium term."