Boskalis posts annual results for 2021
Royal Boskalis Westminster N.V. (Boskalis) concluded 2021 with a strong increase in revenue and earnings and with a well-filled order book, despite COVID-19-related restrictions, according to the company's release.
Revenue increased by 17.1% compared to last year to EUR 2.96 billion (2020: EUR 2.52 billion). Adjusted for (de)consolidation and currency effects, revenue growth was 13.9%.
EBITDA increased by 14.3% to EUR 462 million (2020: EUR 404 million) and the operating result increased by 42.0% to EUR 199 million (2020: EUR 140 million).
Net profit was EUR 151 million, where a year ago there was a net loss of EUR 97 million. There were no exceptional gains or losses in 2021.
In the Dredging & Inland Infra segment, revenue increased by over 20% and the operating result by 57% compared to last year. These strong growth figures came about despite COVID-19-related travel restrictions and quarantine measures resulting in operational inefficiencies, most prevalent in Southeast Asia. The utilization of the trailing suction hopper dredgers was strong in the second half of the year, after a relatively quiet first half due to early maintenance on the mid- to large-sized vessels. The largest revenue contribution came from projects in the Philippines, Singapore, Denmark and from the domestic Dutch market.
At Offshore Energy, revenue increased by 19% on a 52% higher operating result. The revenue growth was almost entirely attributable to the services part of the division. Both Marine Transport & Services and Marine Survey contributed to the growth, but the largest increase came from Subsea Services, in part due to the addition of Rever Offshore acquired late 2020. Across the board, the various contracting and services activities contributed to the good divisional result. In 2021, revenue from offshore wind activities continued to increase, accounting for 46% of division revenue.
The Towage & Salvage division had a good year, both in harbor towage activities and salvage. For many, the combination of Salvage and 2021 will be associated with the refloating of the Ever Given in the Suez Canal, but there were also dozens of other successful salvage assignments in which vessels were saved or where an environmental disaster was averted. Nevertheless, following a number of exceptionally busy years, 2021 was relatively quiet in terms of revenue for Salvage. The harbor towage activities contributed well with a substantial increase in earnings.
The customary holding and non-allocated group costs are returning to normal historic levels following a period during which cost were temporarily lowered as part of the COVID-19 measures.
Boskalis’ financial position remains strong with a net cash position of EUR 203 million, including EUR 148 million of IFRS 16 lease liabilities. Substantial capital investments were made in 2021, following a year in which investments were postponed under the influence of COVID-19. Furthermore, the share buyback program was completed and an all-cash dividend was paid. The exceptionally high negative working capital position remained stable in 2021. With the available cash and bank facilities Boskalis has a direct financing capacity in excess of EUR 1.1 billion. Solvency remains high at 48% and Boskalis comfortably meets its financial covenants.
The order book increased modestly to EUR 5.41 billion (year-end 2020: EUR 5.31 billion). The increase was fully attributable to Offshore Energy, partly as a result of acquiring a substantial offshore wind project in the United States. With the projects in the order book a significant part of the 2022 revenue has been secured and there is a solid basis for the years thereafter.
About Royal Boskalis
Royal Boskalis Westminster N.V. is a leading global services provider operating in the dredging, maritime infrastructure and maritime services sectors. The company provides creative and innovative all-round solutions to infrastructural challenges in the maritime, coastal and delta regions of the world. With core activities such as coastal defense, riverbank protection and land reclamation Boskalis is able to provide adaptive and mitigating solutions to combat the effects of climate change, such as extreme weather conditions and rising sea levels, as well as delivering solutions for the increasing need for space in coastal and delta regions across the world. The company facilitates the development of offshore energy infrastructure, including renewable wind energy. Boskalis is furthermore active in the construction and maintenance of ports, waterways, access channels and civil infrastructure, thus helping to facilitate trade flows and regional socio-economic development. In addition, Boskalis is a global marine salvage expert and has a number of strategic partnerships in harbor towage and terminal services (Keppel Smit Towage and Smit Lamnalco). With a versatile fleet of more than 600 vessels and floating equipment and more than 10,000 employees, including associates, Boskalis is creating new horizons around the world.
