Koninklijke Boskalis Westminster N.V. : Boskalis trading update
Papendrecht, 8 May 2013
The developments at Royal Boskalis Westminster N.V. (Boskalis) in 2013 to date
are in line with expectations.
· Revenue higher than in the same period last year
· Good fleet utilization
· Order book stable compared to year-end 2012
· Dockwise acquisition finalized; integration process started
Boskalis realized a higher revenue in the first quarter of 2013 compared to
thesame period last year. There was no material change in market
circumstances during the quarter, with continued pressure on margins and
challenging conditions. The acquisition of Dockwise was finalized at the end
of March and the Dockwise results will be included in the consolidated figures
from the second quarter.
The Dredging segment reported good margins with a revenue level that was in
line with the first quarter of 2012. Utilization of the hopper fleet was good
in the first quarter and was higher than the 2012 full year utilization rate.
In addition to the customary contribution from the fleet operations and
project results, the first quarter also saw a book profit from the sale of
Offshore Energy provided a mixed picture in the first quarter. Subsea and
Marine Services saw a relatively quiet quarter, partly because of low
utilization of the diving support vessels due to weather conditions in the
North Sea. Subsea and Marine Contracting had a busy first quarter, with good
utilization rates for the fallpipe vessels in particular. The Dockwise
activities will be added to the Offshore Energy segment with effect from the
The revenue level in the Inland Infra segment was higher compared to the same
period last year. However, due to seasonality and pricing pressure in the
Dutch market, result growth did not keep pace. Since late 2012 Boskalis has
been in talks with a party from the Middle East which is interested in
acquiring Boskalis' 40% stake in Archirodon. Further details will be disclosed
if and as soon as these talks result in an actual transaction.
The Towage & Salvage activities had a good first quarter. Harbour Towage was
able to look back on a good quarter partly thanks to a number of Salvage
assistances. The terminal activities (our 50% stake in Smit Lamnalco) also had
a good quarter despite a quiet spot market. Salvage made a good start to the
year with a high workload of emergency responseand salvage contracts.
At end-March the order book stood at EUR 4.1 billion, unchanged compared to
the end of 2012.
The offer period relating to the mandatory cash offer for all outstanding
shares of Dockwise ended on 13 March 2013. As at that date 99.39% of the total
number of shares had been tendered and with the formal settlement of the offer
on 20 March 2013 Boskalis gained control of the company. Since that date
Boskalis has secured all the remaining shares and Dockwise has been delisted
from both the Amsterdam and the Oslo stock exchanges. This means that the
acquisition was completed within five months and we can now proceed with the
integration process. This process will initially focus on analyzing the
markets in which both Boskalis and Dockwise operate (the Offshore and Heavy
Marine Transport markets) and identifying where there are commercial
opportunities. At the same time we will take a close look at the combined
organization so that we can quickly start leveraging the synergy benefits
arising from the combination.
The operational developments at Dockwise in the first quarter were in line
with expectations, with revenue rising and a slightly higher operating margin.
Fleet utilization was in line with early 2012 and the order book fell slightly
compared to the end of 2012. In February the Vanguard was taken into service
and very recently the maiden project was successfully completed with the
delivery of Jack/St. Malo, the world's biggest semisubmersible offshore
As a result of the Dockwise acquisition, the financial position of Boskalis
has changed compared to the end of 2012. The acquisition was financed with a
combination of new equity (EUR 320 million equity issue) and debt. As a result
Boskalis still has a strong balance sheet following the acquisition and
currently stands well within the covenants agreed with its debt providers.
The markets in which Boskalis operates are driven in the long term by growth
in global trade, energy consumption and the world's population, as well as by
the effects of climate change.
The medium-term picture is mixed for the markets in which we operate. On the
one hand we are seeing continued reluctance on the part of governments,
particularly in Europe, to invest. On the other we are seeing private
initiatives for new infrastructure projects being developed by clients in
various regions of the world and across the different market segments. This
applies in particular to energy and raw materials-related projects in South
America, Africa and Australasia as well as to port developments outside of
Market developments in the offshore energy market have a bearing on a
substantial part of our business. We expect demand for and construction of new
oil and LNG import and export terminals (Dredging and Dockwise) to lead to
growth in terminal services (Smit Lamnalco).
For the rest, developments at Offshore Energy are strongly dependent on an
upturn in demand from the energy markets, particularly those in Northwest
Europe, Brazil and Southeast Asia.
For 2013and as previously indicated,we expect that the current market
developments will once again have a dampening effect on the structurally
positive trends that underpin our strategy. Current information suggests that
the year ahead will bring little change to the market picture compared to
2012. At Dredging we expect to see healthy fleet utilization levels and a
stable operating margin. The same outlook also applies to the other activities
Offshore Energy, Inland Infra and Towage & Salvage.
Capital expenditure for 2013 is expected to be around EUR 400 million,
including Dockwise, which can be funded from the cash flow.
The project-based nature of a significant part of our activities tends to make
it difficult to give a specific quantitative forecast of the full-year result
early on in the year. In addition the 2013 result will be strongly influenced
by the consolidation of Dockwise (from the beginning of the second quarter of
2013), the customary exceptional (one-off) effects associated with an
acquisition and the possible sale of our 40% stake in Archirodon. In light of
these factors we are currently unable to provide quantitative guidance with
regard to the 2013 full-year result.
FINANCIAL AGENDA 2013
8 May General Meeting of Shareholders
10 May Ex-dividend date
14 May Record date for dividend entitlement (after market close)
27 May Final date for stating preference for dividend in cash or
30 May Determination and publication of conversion rate for stock
dividend based on the volume-weighted average share price on
28, 29 and 30 May (after market close)
4 June Date of dividend payment and delivery of shares
15 August Publication of 2013 half-year results
15 November Trading update on third quarter of 2013
This is an English translation of the Dutch press release. In the event of any
disparity between the Dutch original and this translation, the Dutch text will
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 the construction and maintenance of ports and waterways, land
reclamation, coastal defense and riverbank protection. In addition, Boskalis
offers a wide variety of marine services and contracting for the offshore
energy sector including subsea, heavy transport, lifting and installation
(through Boskalis Offshore and Dockwise) and towage and salvage (through
SMIT). It also has strategic partnerships in the Middle East (Archirodon) and
in terminal services (Smit Lamnalco). With a versatile fleet of over 1,100
units Boskalis operates in around 75 countries across six continents.
Including its share in partnerships, Boskalis has approximately 15,600
This press release can also be found on our website www.boskalis.com.
FOR FURTHER INFORMATION
Martijn L.D. Schuttevâer
T +31 78 6969310
F +31 78 6969020
PDF-version of this press release
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Source: Koninklijke Boskalis Westminster N.V. via Thomson Reuters ONE
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