The Netherlands: Boskalis 2012 Net Profit Slightly Declines
Royal Boskalis Westminster N.V. (Boskalis) achieved a record revenue of EUR 3.1 billion in 2012 (2011: EUR 2.8 billion). Net profit amounted to EUR 250 million, thus remaining virtually stable compared to 2011 (EUR 254 million). Despite the slight decline in net profit and a substantial increase in the number of outstanding shares as a consequence of the recent equity issue in connection with the acquisition of Dockwise, Boskalis intends to pay-out an unchanged dividend of EUR 1.24 per share.
EBITDA dropped to EUR 568 million (2011: EUR 591 million) and the operating result (EBIT) fell to EUR 337 million (2011: EUR 354 million). The contribution from Dredging declined as a consequence of lower volume of work. Challenging market conditions in Inland Infra led to a lower result with an increase in revenue. The remaining activities, Offshore Energy and Towage & Salvage, achieved a respectively virtually stable and slightly higher operating result.
The order book increased to EUR 4.106 million as per end-2012 (end-2011: EUR EUR 3.489 million). Compared to the 2012 mid-year level the order book was also higher at the end of the year.
Peter Berdowski, CEO Boskalis:
“Despite the challenging market conditions we look back on a fine year in which we took major steps in further strengthening and expanding the company. 2012 was a year in which a broad recovery of the global economy failed to materialize. Against that background we turned in a good performance with record revenue and an all-time high order book of EUR 4.1 billion, evenly spread across all our activities.
While executing and acquiring works kept us busy, we continued to expand the business within the strategic framework of our business plan. In addition to completing the integration with SMIT we took an important step with the acquisition of Dockwise. The combination will sharply grow our position in the offshore energy sector and allow us to offer new perspectives to both our clients and our staff.
No material change is expected in market conditions in 2013, with volumes and margins remaining under pressure. Based on the current level of the order book we expect healthy utilization levels of the equipment, in particular the hoppers. Furthermore 2013 will revolve around the integration and consolidation of Dockwise. Together with the management of Dockwise we have already taken the first concrete steps in this direction.”
Capital expenditure for the coming year is expected to be around EUR 325 million, excluding Dockwise which can be funded form the cash flow. The acquisition financing for Dockwise and the refinancing of existing Dockwise and Boskalis bank facilities will push up the total debt position. Subsequent to the (re)financing, Boskalis will retain a solid financial position.
For 2013, Boskalis expects that the current market developments will once again have a dampening effect on the structurally positive trends that underpin the Company’s strategy. Current information suggests that the year ahead will bring little change to the market picture compared to 2012. At Dredging the Company expects to see healthy fleet utilization levels and a stable operating margin development. The same outlook also applies to the other activities Offshore Energy, Inland Infra and Towage & Salvage.
The project-based nature of a significant part of their activities tends to make it difficult to give a specific quantitative forecast of the full-year result early on in the year. In addition the 2013 result will be strongly influenced by the consolidation of Dockwise (from the beginning of the second quarter of 2013), the possible sale of the 40% stake in Archirodon and the customary exceptional (one-off) effects associated with an acquisition. In light of these factors Boskalis is currently unable to provide quantitative guidance with regard to the 2013 full-year result.
Boskalis, March 14, 2013