Royal Boskalis Westminster N.V. (Boskalis) has concluded a good half year with a strong increase in earnings despite ongoing COVID-19 related restrictions, according to the company's release.
Compared to last year, revenue increased by 4.6% to EUR 1.32 billion (H1 2020: EUR 1.26 billion). Adjusted for (de)consolidation and currency effects, revenue growth was 2.7%.
EBITDA increased by 10.8% to EUR 226 million (H1 2020: EUR 204 million) and operating profit increased by 34.1% to EUR 97 million (H1 2020: EUR 72 million).
Net profit amounted to EUR 72 million compared to a net loss of EUR 96 million a year ago. There were no exceptional gains or losses in the first half of the year, where the first half-year result 2020 included exceptional charges of EUR 144 million after tax.
In the Dredging & Inland Infra segment, revenue decreased by 2.6% compared to the same period last year with a slightly lower result. This development is partly due to continuing COVID-19 related travel restrictions and quarantine measures resulting in operational inefficiencies on certain large projects. Furthermore, maintenance schedules for the mid- to large sized trailing suction hopper dredgers were brought forward to the second quarter, resulting in higher operational costs and a lower availability. In view of the well-filled order book and busy schedules, it was decided to bring forward part of the maintenance planned for the second half of the year and carry it out in the first half. The largest revenue contribution came from projects in Southeast Asia, the Indian subcontinent, Canada, Denmark and the Dutch market.
At Offshore Energy, revenue increased by more than 18% with a significantly higher result. Contracting revenue was virtually stable, with the revenue growth being on the services side of the business. Both Marine Transport & Services and Subsea Services had a good first half year and the integration of the recently acquired Rever Offshore also contributed significantly to the revenue growth. Across the board, the various activities contributed to the good divisional result, with in particular a good half year for the offshore wind projects and Subsea Services.
Within the Towage & Salvage division, Salvage successfully completed a number of high-profile assignments, including the refloating of the Ever Given in the Suez Canal and the recovery of the Eemslift Hendrika off the coast of Norway. Despite this, the first half of the year was relatively quiet, especially compared to the exceptionally busy 2020. Despite a lower revenue, the divisional result increased substantially. In addition to a good half year at Towage, this is primarily due to a substantial settlement result at Salvage relating to an emergency response assignment operationally completed in 2019.
The customary holding and unallocated group costs increased compared to 2020, however are still at a low level due to a wide range of COVID-19 related cost-saving measures.
The net cash position decreased in line with expectations but the financial position is still very strong. The exceptionally high net cash position at year-end 2020 declined to EUR 213 million, primarily as a result of investments, the payment of dividend, the share buyback program and a normalization of working capital. With the available cash and bank facilities, Boskalis has a direct financing capacity in excess of EUR 1 billion. Solvency remains high at 50% and Boskalis comfortably meets its financial covenants.
The order book increased by over 4% to a new record high of EUR 5.53 billion (year-end 2020: EUR 5.31 billion). The largest increase in the portfolio took place in Dredging & Inland Infra, within Europe. Among other things, the project Meanderende Maas, which is part of the national Flood Protection Program in the Netherlands was acquired and substantial infrastructure projects were won in the United Kingdom and Belgium. With the projects in the order book, a significant part of the revenue for 2021 has been secured and there is a very solid basis for the years thereafter.
About 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 700 vessels and floating equipment and 9,600 employees, including associates, Boskalis is creating new horizons around the world.