• 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.


2020 September 26

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2020 September 25

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17:12 Metal Shark debuts 48-meter catamaran expedition vessel and introduces "Metal Shark Yachts" portfolio
16:51 Ningbo Containerized Freight Index rises significantly in September
16:19 OOCL's service update for Trans-Pacific trade
16:16 Representative office of Marinet opened in China
15:27 GTT signs a contract with the U.S. Dep't of Defense for the Red Hill Bulk Fuel Storage Facility
14:59 RFC held the second stage of the ecological marathon
14:31 Bunker prices are flat in the Port of Saint-Petersburg, Russia (graph)
14:05 Zvezda shipyard to build 10 gas tankers for Arctic LNG 2
13:42 Wärtsilä solutions meet challenging needs of Canadian Coast Guard vessel
13:18 Nuclear-powered container carrier Sevmorput delivered Kamchatka fish to Saint-Petersburg
12:56 Competition for construction of two scientific research ships for Russian Federal Fisheries Agency to be announced in October
12:34 Royal Niestern Sander orders SCHOTTEL thrusters for world’s first shallow-draught ice-breaking W2W vessel
12:11 VEB.RF starts financing construction of ten gas tankers for Arctic LNG 2 project
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10:37 British Ports Association sets out spending review priorities
10:29 New state programme on Arctic development in 2021-2024 drafted by Russia’s ad hoc Ministry
09:53 Debt service guarantees on Yamal LNG removed from NOVATEK
09:30 Oil prices rise in hope of demand
09:12 Baltic Dry Index as of September 24
09:11 MABUX: Bunker market this morning, Sept 25

2020 September 24

18:37 Kongsberg Digital develops cloud-based simulators for maritime industry, with funds from Innovation Norway
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17:20 World’s first subsea compression system passes five years in operation
17:12 Esben Poulsson reappointed as ICS Chairman for a new term
16:48 Okskaya Shipyard launches first multipurpose dry cargo carrier of Project RSD59 for Astrol
16:24 Severnaya Verf starts cutting steel for seventh trawler of Project 170701 for NOREBO Group
15:50 ASCO's vessel “Razul Rza” sent to outer waters after repairs
15:26 Russian Direct Investment Fund (RDIF) to invest in Sovcomflot, says RDIF CEO
15:02 Diana Shipping announces the sale of a Capesize Dry bulk vessel
14:39 Russian Railways launches regular multimodal service from China to Europe via the ports of Kaliningrad and Hamburg
14:17 MABUX releases its weekly review of bunker market
14:02 Fincantieri starts dry dock works for experimental vessel Zeus
13:40 Freeport of Riga Authority signs Declaration of Cooperation with Port of Shenzhen
13:21 IMO celebrates World Maritime Day 2020
13:08 Total and MOL officially name the world’s largest LNG bunker vessel
12:48 Bunker prices decrease in the Far East ports of Russia (graph)
12:25 ZIM launches new China-Australia Express Line
12:11 Inmarsat Fleet Lte service coverage extended to Gulf of Mexico following successful trials with V.Ships Offshore
11:32 Ships of RF Navy’s Black Sea Fleet take part in "Kavkaz-2020" maneuvers
11:14 Port of Trelleborg offers their shipping customers reliable and fast internet with Nowhere Networks
11:13 "Tatarstan" missile ship of RF Navy’s Caspian Flotilla involved in "Kavkaz-2020" maneuvers
10:09 CTI-Maritec receives DNV GL approval for ballast water testing
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09:36 MPC Container Ships ASA announces appointment of new CFO
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08:40 MABUX: Bunker market this morning, Sept 24

2020 September 23

18:15 HMM opens Fleet Control Centre
17:35 Stena develops a solution to use recycled batteries in charging stations at port
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