Papendrecht, 17 February 2017
Due to the strongly deteriorated market conditions
in the offshore energy sector and the resulting outlook, Royal
Boskalis Westminster N.V. (Boskalis) announces that it will report
a non-cash impairment charge of EUR 840 million in its annual
results 2016. This charge is almost entirely related to the
services part of Boskalis' offshore oil and gas activities, with
more than EUR 365 million related to an impairment of
vessels, more than EUR 380 million relating to goodwill
and approximately EUR 90 million to
Smit Lamnalco.
In some of our service-related offshore energy
market segments there is a structural imbalance between supply and
demand, particularly in the heavy marine transport segment. This
has put utilization rates and margins under pressure, resulting in
a non-cash impairment of both the value of the vessels that operate
at the lower end of the market and the goodwill.
A large part of the impairment relates to the
Dockwise activities acquired in 2013 and the Dockwise vessels in
the lower end of the market. Since the acquisition, Dockwise has
contributed exceptionally well to Boskalis' results. Up to and
including 2016 Dockwise generated around EUR 900 million
in cash from its operating activities. The impairment of goodwill
and the fleet amounts to EUR 550 million. Taking into
account the initial acquisition cost, the result already achieved,
the investments made since the acquisition and the impairment
charge, the return on this acquisition has been healthy.
Boskalis' financial position continues to be
strong, even after this impairment. At the end of 2016 Boskalis was
amply net debt-free with more than EUR 900 million in
cash on its balance sheet. The solvency ratio at year-end exceeded
55% and Boskalis comfortably meets the covenants agreed with its
debt providers.
This impairment charge has no impact on the amount
of dividend being set for 2016. The dividend will be based on the
underlying net result, adjusted for the impairment charge. Boskalis
maintains its outlook for the underlying net profit as stated in
its third quarter 2016 trading update press release. In line with
its policy, Boskalis will distribute 40-50% of net profit as
dividend in cash or in ordinary shares. The number of shares to be
distributed as stock dividend will subsequently be repurchased to
prevent dilution.
On 8 March 2017 Boskalis will publish its annual
results for 2016 as well as a strategic update for the 2017-2019
period. This update will reflect on matters including interesting
opportunities Boskalis sees at the high end of the offshore energy
market.
for further information
Investor relations:
Martijn L.D. Schuttevâer
ir@boskalis.com
Press:
Arno Schikker
press@boskalis.com
T +31 78 6969310
This is a
Boskalis press release on the grounds of article 17 paragraph 1 of
the European Market Abuse Regulation (596/2014).
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 services including 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 oil and gas sector and offshore wind industry as well as
salvage solutions (SMIT Salvage). Furthermore, Boskalis has a
number of strategic partnerships in harbour towage and terminal
services (KOTUG SMIT Towage, Keppel Smit Towage, Saam Smit Towage
and Smit Lamnalco). With a versatile fleet of 1,000 units Boskalis
operates in around 75 countries across six continents. Boskalis has
over 8,200 employees, excluding its share in
partnerships.
This press release can also be found on our
website www.boskalis.com.
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 prevail.
pdf version press release
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Koninklijke Boskalis Westminster N.V. via
Globenewswire
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