• 2016 May 10 16:05

    Boskalis closed the first quarter of 2016 in line with expectations

    As stated at the Boskalis release of the 2015 full-year results volumes and prices in the markets relevant to Boskalis are under pressure. As a result of this, fleet utilization has dropped and revenue declined strongly compared to the same period in 2015. The EBITDA margins were slightly down compared to the same period in 2015 and the order book increased slightly during the first quarter.

    Dredging & Inland Infra

    Revenue in the Dredging & Inland Infra segment declined compared to the first quarter of last year. The decline is partly attributable to the completion of the Suez Canal project, which made a substantial contribution to last year's revenue. Notable projects in the first quarter of 2016 were port maintenance works in countries including Germany, Australia and Mexico, and land reclamation projects in Indonesia and Panama. The utilization rate of the hopper and cutter fleet was lower than last year due to maintenance and in line with the lower volume of work.

    The order book of the Dredging & Inland Infra segment increased slightly during the quarter compared to the end of 2015. Notable new projects contracted include the construction of artificial islands off the coast of Makassar (Indonesia), construction of the Offshore Terminal Bremerhaven (Germany) and reinforcement of the Wadden Sea dike on the island of Texel (the Netherlands). In early March, a consortium including Boskalis was designated the preferred bidder for the dredging work for the Fehmarnbelt tunnel connecting Germany and Denmark. The contract negotiations are progressing well and Boskalis expects the contract, which is valued at EUR 600 million (Boskalis' share 50%), to be signed in the near term.

    At the end of the first quarter, Boskalis concluded the acquisition of the dredging assets of STRABAG Wasserbau GmbH, thereby strengthening its home market position in Germany and fulfilling an important part of the foreseen requirement to replace part of the hopper fleet.

    Offshore Energy

    At Offshore Energy there was a decline in revenue in the first quarter, in line with expectations.
    Subsea Contracting was active with wind farm-related rock installation work in Europe, whilst last year large projects in Australia, the Philippines and Azerbaijan were underway. The fallpipe vessels were well utilized in the first quarter.
    Marine Contracting had a good start to the year with a combination of wind farm projects (Veja Mate and Wikinger) and oil & gas projects (Hebron, Clair Ridge and preparation work for Moho Nord and Aasta Hansteen).
    In the first quarter Logistical Management once again carried out transports for the Ichthys and Wheatstone LNG projects in Australia. Both projects will be completed according to schedule by mid-2016.
    The impact of the deteriorated market conditions was clearly visible at Marine Services, with both the large Anchor Handling Tugs and the Dockwise vessels seeing pressure on tariffs and lower utilization levels compared to last year.
    At Subsea Services the activities in the North Sea continued to remain under pressure. This was partially offset by deploying vessels on decommissioning and offshore wind farm and munitions clearance projects in Europe.

    The Offshore Energy order book decreased slightly compared to end-2015.

    Towage & Salvage

    There was a slight decline in revenue at Towage (harbour towage activities in Northwest Europe) in the first quarter. The contribution from the towage joint ventures was comparable to last year.
    Salvage started the year with a number of impressive and successful emergency response contracts, including the rescue of a ro-ro vessel that went adrift in the Bay of Biscay and the refloating of a 19,000 TEU container vessel that ran aground in the Elbe River near the German port of Hamburg. In contrast to last year there are no major wreck removal projects underway or in the portfolio, resulting in a decline in revenue at Salvage.

    At the beginning of April, Boskalis and KOTUG completed the merger of their European harbour towage services. The joint operations were transferred to a new 50/50 joint venture, which will operate under the name KOTUG SMIT Towage. At the financial close Boskalis refinanced its contribution to the joint venture and as a consequence freed up and received EUR 90 million in cash. The European harbour towage operations will be deconsolidated as from the second quarter and recognized as a joint venture.

    Outlook

    The market in general has seen no material change since the release of the 2015 full-year results and will be characterized in the coming period by lower volumes of work and pressure on utilization rates and margins. At Dredging & Inland Infra the emphasis will be on maintaining utilization rates at responsible margins and levels of project risk. With the current orders in hand a good part of the fleet will be utilized for 2016, albeit at lower margins than in previous years. The picture at Offshore Energy remains mixed. A number of long-term contracts and work already contracted provide stability for part of the fleet, but the spot market-related transport activities and subsea services are experiencing pressure on utilization rates and margins. At the same time the offshore wind market presents new opportunities, partly through the recently announced intention to acquire offshore activities of VolkerWessels.

    As from the second quarter all the Towage activities have been transferred to joint ventures. Market volumes in this segment are relatively stable, although competition is expected to increase, especially in terminal services.

    To respond to these market developments we have launched a fleet rationalization and cost reduction program. It is expected that especially at Dredging equipment will be taken out of service with the associated implications for staffing levels. In addition, we are taking a critical look at reducing the costs of the global office network.

    The project-based nature of a significant part of our activities, in addition to the uncertain market conditions, makes it difficult to give a specific quantitative forecast with regard to the 2016 full-year result early on in the year. It is, however, clear that net profit will be substantially lower than the exceptionally strong 2015 result.

    Boskalis continues to have a very sound financial position. Capital expenditure in 2016 is expected to be around EUR 200 million, excluding acquisitions, and will be financed from the company's own cash flow.


2019 December 5

18:05 ABS, MAN & SDARI join forces to develop ammonia-fueled feeder vessel
17:46 Throughput of Rostov-on-Don port in 11M’19 fell by 7% Y-o-Y to 21.1 million tonnes
17:21 Extraordinary general shareholders meeting of LUKOIL approves interim dividend
17:05 NORDEN enters new biofuel collaboration with Kvasir Technologies
16:28 Cargo traffic on Northern Sea Route can grow to 160 million tonnes by 2035 – Aleksandr Krutikov
16:05 ABS and CATL sign battery research agreement
15:54 Port of HaminaKotka published its statistics for November 2019
15:30 Ministry for Development of Russian Far East and Arctic expects special economic regime to come into force in Arctic in 2020
15:03 DNV GL and Huangpu-Wenchong sign JDP on 5,000 TEU LNG dual-fuel containership
14:49 Global project launched to tackle plastic litter from ships and fisheries
14:33 IMO Assembly approved renewal of Kitack Lim’s appointment as secretary-general of UN body
14:06 Torqeedo powers all-electric harbour water clean-up boat
13:06 YILPORT Puerto Bolívar now operates with four mobile harbor cranes
12:44 Bunker prices increase at the Far East ports of Russia (graph)
12:25 Norfolk, Virginia to host Port & Terminal Technology USA on 21-22 April 2020
12:17 MABUX: Bunker market this morning, Dec 05
12:08 Inmarsat launches Fleet LTE service in the North Sea
11:50 Forum «Arctic: Today and the Future» kicked off in Saint-Petersburg
11:29 “K” Line completes additional development (Phase-2) of “Kawasaki Integrated Maritime Solutions”
11:05 PIL upgrades Redsea Gulf Service and Intra-Redsea Feeder 5
10:37 DNV GL and GSI cooperate on AI-based solution to improve welding NDT efficiency
10:01 Bunker sales at port Vladivostok in 11M’19 grew by 53.2% to 1.58 million tonnes
09:36 Brent Crude futures price is down 0.1% to $62.94, Light Sweet Crude – down 0.38% to $58.2
09:18 Baltic Dry Index is down to 1,599 points
09:03 CMA CGM and Total sign a major agreement
06:49 Ocean Yield ASA announces delivery of three LR2 product tankers with long-term charters

2019 December 4

18:30 North Carolina Ports Chief Commercial Officer retires
18:09 Diana Shipping announces time charter contracts for m/v Myrsini with Ausca and m/v Artemis with Koch
17:47 DNV GL and GSI cooperate on AI-based solution to improve welding NDT efficiency
17:26 Freight turnover of Neva-Metal (Saint-Petersburg) in 11M’19 fell by 1% Y-o-Y to 2.93 million tonnes
17:09 ABS presents its innovative work at the annual meeting of the ABS South East Asia Regional Committee
16:48 Traficom: new study published on indicative analysis methods used in the control of ships’ ballast water treatment
16:32 Port of Gdynia increased container handling by 13% to 750.439 thousand tons in 10M’2019
16:09 Nexans, Eversource and Ørsted sign Framework Agreement for North American Offshore Wind Farm development with the opportunity to provide up to 1,000 kilometers of export cable for multiple Ørsted projects till 2027 in United States
15:52 Jotun A/S and COSCO Shipping International HK renew JV agreement
15:31 Cargo traffic within Azov-Don Basin of Russia’s IWWs down 9% to 9.57 million tonnes in 11M’19
15:10 The opening of Port Said tunnel under the Suez Canal provides faster access to SCCT
14:47 Port of Gdynia completed modernization and redevelopment of its video surveillance system
14:30 Port of Ipswich celebrates new partnership milestone with Metsä Wood UK
14:09 Maersk launches new visibility tool “Captain Peter”
13:51 ABP appointed new Head of Operations for Humber International Terminal
13:28 Moscow Canal completed project on digital mapping of Russia’s inland water ways
13:09 Georgia Ports Authority set to exceed 4.6M TEUs for the first time in a calendar year
12:47 Russian Maritime Register of Shipping takes part in Marintec China 2019
12:30 Crew of IBSV Gennadiy Nevelskoy rescued three men in Sea of Okhotsk
12:08 GTT and WISON sign a Technical Assistance and License Agreement for the construction of membrane tank systems
11:53 AS Tallink Grupp reports increase of passenger and cargo turnover in November 2019
11:26 Russian Railways: Loading of export cargo bound for domestic ports up 3.4% to 281.4 million tonnes in 11M’19
11:08 LR collaborates with DSIC and Man Energy Solutions for first ammonia-fuelled ULCS in China
10:47 Bunker market at the port of Saint-Petersburg sees mixed price movements, Russia (graph)
10:30 Hapag-Lloyd to revise the Currency Adjustment Factor for North Europe as of January 1, 2020
10:08 HEP to build the first hydrogen station at the Port of Amsterdam
10:03 MABUX: Bunker market this morning, Dec 04
09:56 Baltic Dry Index is up to 1,606 points
09:38 Lloyd’s Register grants AiP to CMES, CNOOC, DSIC and GTT for LNG dual-fuelled VLCC design
09:20 Brent Crude futures price is up 0.74% to $61.27, Light Sweet Crude – up 0.68% to $56.48
09:08 Odfjell SE reaches an agreement with Navig8 Chemical Tankers to expands stainless steel chemical tanker pool
08:53 Port of Hamburg anticipates positive impact from the EU-Singapore trade agreement
08:06 P.P. Shirshov Institute of Oceanology of the Russian Academy of Sciences development is declared the best innovative product at Seoul Fair
07:06 CMA CGM chooses the port of Marseille-Fos for the bunkering of its future 15,000-TEU vessels