Despite what it describes as 'challenging market conditions' Royal Boskalis Westminster N.V. posted record profits in the first half year ended 30, June 2014.
Highlights first half 2014
- Revenue exceeds EUR 1.5 billion
- EBITDA: EUR 466 million
- Net profit: EUR 253 million
- Order book in excess of EUR 3.1 billion
- First application of IFRS11 outlook
- Challenging market conditions
- Net profit expected to exceed record 2013 profit (EUR 366 million)
The results in all three segments rose sharply compared to the first half of 2013. Dredging & Inland Infra had a busy first half of the year with a high fleet utilization rate, good project margins and substantial settlement results on old projects.
The Offshore Energy segment also had a good first half of the year with a high fleet utilization rate and good project margins. Furthermore, Dockwise contributed an extra quarter to earnings compared to 2013 in addition to a sizable contribution from cancellation and rescheduling fees.
The results at Towage & Salvage were higher despite a quiet first half of the year in terms of salvage activities, but with good results from the settlement of older salvage projects.
The order book stood at EUR 3,146 million at the end of the first half of the year (end 2013: EUR 3,323 million).
Peter Berdowski, CEO Boskalis commented:
"We have posted a historically high result in the first half of 2014 and the performance across the board of the company has been very good. This result is partly thanks to the strategic choice we made to broaden our focus on offshore. The offshore activities are becoming increasingly important and the contribution of Dockwise forms a key part of this. But the traditional core dredging activities also made an excellent contribution to the results.
In the first half of the year we achieved a high fleet utilization rate and good project results. In addition, a number of exceptional gains made a substantial contribution to the results, including settlement results on old projects in Dredging and Salvage as well as compensation for Dockwise transport contracts that were cancelled. The extremely good results may however not be viewed as a fair reflection of current market conditions which remain very challenging, both in terms of margin and volume."
Current insights suggest that the market picture is not expected to change significantly in the second half of the year compared to the first half of the year.
Full details of this financial report are downloadable at: hugin.info/130721/R/1848732/645201.pdf