Papendrecht, 8 March 2018
HIGHLIGHTS IN 2017
-
Revenue: EUR 2.34 billion
-
EBITDA: EUR 437 million
-
Net profit: EUR 150 million
-
Order book: EUR 3.50 billion
-
Proposed dividend: EUR 1.00 per share
OUTLOOK
-
Mixed market picture to continue
-
Reasonable market volume at Dredging &
Inland Infra
-
Continued supply/demand imbalance at Offshore
Energy services
-
New opportunities in Offshore Energy
contracting
-
Stable market volume at Towage
Royal Boskalis Westminster N.V. (Boskalis)
achieved a net profit of EUR 150 million in 2017, in line
with expectations. This compares to a net loss of EUR 564 million
in 2016 as a result of EUR 840 million of non-cash impairment
charges.
Revenue declined by 10 per cent to EUR 2.34
billion (2016: EUR 2.60 billion). Adjusted for
consolidation, deconsolidation and currency effects, revenue was
down 15 per cent.
EBITDA amounted to EUR 437 million and the
operating result (EBIT) was EUR 185 million (2016 EBITDA:
EUR 661 million and EBIT: EUR 385 million, both adjusted for
impairment charges).
Dredging & Inland Infra had a relatively busy
year after an exceptionally weak 2016. Both revenue and the fleet
utilization rose, fueled by a number of large projects in progress
in Brazil, Indonesia, India and Oman. The results from ongoing
dredging projects were lower than in previous years while projects
that were technically completed previously once again made a
positive contribution to the result.
Revenue and the segment result at Offshore Energy
declined further compared to previous years, due in part to the
poor market conditions in the oil and gas industry. The various
activities nevertheless made a reasonable to good contribution to
the result.
The result at Towage & Salvage declined
compared to last year, mainly as a result of weak market conditions
and one-off charges at Towage. Following a very quiet start to the
year, Salvage ended 2017 well with a couple of large emergency
response contracts.
Boskalis' financial position remains strong with a
solvency ratio of 63% and a limited net debt of EUR 120
million.
The order book increased to EUR 3.50 billion
(end-2016: EUR 2.92 billion).
Peter Berdowski, CEO of
Boskalis:
"Despite the difficult market conditions we ended
the year quite reasonably, in line with our expectations.
Furthermore, in the first year good progress was achieved with the
implementation of our 2017-2019 corporate business. This included
the acquisition of Gardline, a renowned British player in the
marine survey market, in which we aim to build a presence. In
addition, we added two modern diving support vessels to our fleet,
considerably strengthening our position in the subsea services
market. And very recently we took the Bokalift 1 into service, an
impressive crane vessel for the offshore installation market, both
for oil and gas and for offshore windfarm projects. The vessel's
first project involves the installation of jackets for an offshore
windfarm.
In the past period we also
adjusted our fleet and organization to the changed market
conditions. Following the fleet rationalization program, we
optimized the organization at head office in 2017. We made a
conscious decision to do this within a short timeframe allowing us
to now look ahead at the opportunities still present in the market.
To capitalize on these opportunities as one team, we will present
ourselves in the market with one face and will therefore in 2018
transition to one strong brand name: Boskalis.
As stated in our corporate
business plan we do not yet foresee a fundamental recovery in our
markets in the coming years. In the short term we do however expect
opportunities for selective growth and a subsequent structural
recovery for the period thereafter."
>>> click here
for the full version of the 2017 financial review including all the
financial details <<<
Market developments & Strategy update
The long-term macro trends that underpin the
Boskalis business model remain positive. Our business drivers are
structural economic growth and increasing prosperity of the global
population, which in turn fuel growth in global trade and demand
for raw materials and energy. Global warming also continues to
create business opportunities for Boskalis due to the growing need
for coastal defense and riverbank protection as extreme weather
conditions lead to increased flooding. While the long-term trends
are positive, in the short term these are not translating into
promising projects across the board. Demand in some of the regions
and markets where Boskalis is active is expected to develop less
favorably in the coming years and the outlook is uncertain.
Boskalis will continue to focus on market segments that show
long-term structural growth and provide short-term opportunities:
ports, energy (oil, gas, wind and the dismantling of old offshore
platforms) and climate change-related projects (coastal defense and
riverbank protection).
The Corporate Business Plan for 2017-2019 and the
strategy section in the 2017 Annual Report take a detailed look at
the development of our business drivers and how these translate
into our end markets. We see plenty of scope to further expand the
business and acted upon this in the past year. In 2017 Boskalis
strengthened its position in Subsea Services with the acquisition
of marine survey specialist Gardline and the addition of two modern
high-end SAT diving support vessels. Our position in the offshore
installation market was recently strengthened with the
commissioning of the Bokalift 1, a 3,000-ton crane vessel. This
multifunctional crane vessel that transports and installs
foundations for offshore windfarms and oil and gas platforms will
also be used to dismantle old platforms and salvage ship wrecks. In
2017, the Dredging fleet was further strengthened with the new mega
cutter suction dredger Helios, with a sister vessel expected to be
taken into service in 2020. Despite facing short-term challenges
Boskalis is positive about the opportunities in the medium term and
long term.
Outlook
As stated in our corporate business plan the
market picture for the next two years will be characterized by
continued lower volumes of work and pressure on both utilization
levels and margins. At Dredging & Inland Infra we see a
reasonable volume of work in the market in the short term. The
emphasis for Boskalis is on maintaining utilization at a
responsible level of project risk. The current size of the order
book means that a good part of the fleet will be utilized in 2018,
albeit at lower margins than in previous years. The picture for the
Offshore Energy market has not changed. Past contracts at Heavy
Marine Transport are being completed and we are increasingly
dependent on the highly competitive spot market. Where necessary
transport vessels at the lower end of the market will be laid up.
At Offshore Installation & Intervention the order book is
filled better and we expect a reasonable year. Market volumes in
the Towage activities are relatively stable, although competition
in some ports has increased, resulting in lower margins.
The project-based nature of a significant part of
our activities, in addition to the uncertain market conditions,
makes it difficult to provide a specific quantitative forecast with
regard to the 2018 full-year result early on in the year. However,
knowing what we know now it appears that it will be a challenge to
match the 2017 net result.
Capital expenditure in 2018 is expected to be
around EUR 250 million, excluding acquisitions, and will be
financed from the company's own cash flow. Boskalis has a very
sound financial position and comfortably meets its financial
covenants.
Dividend policy and dividend proposal
The main principle underlying the Boskalis
dividend policy is to distribute 40% to 50% of the net profit from
ordinary operations as dividend, while pursuing a stable long-term
development of dividend. The choice of dividend form (in cash
and/or fully or partly in shares) takes into account the company's
desired balance sheet structure as well as the interests and wishes
of the shareholders.
In view of the importance that our shareholders
attach to a stable dividend and our healthy cash flow and robust
balance sheet, Boskalis will propose to the Annual General Meeting
of Shareholders to be held on 9 May 2018 that an unchanged dividend
of EUR 1.00 per share be distributed, equal to 87% of net profit.
The dividend will be distributed in the form of ordinary shares,
unless the shareholder opts to receive a cash dividend. The
dividend will be made payable from 5 June 2018.
KEY
FIGURES |
2017 |
2016 |
(in EUR million) |
|
|
Revenue |
2,337 |
2,596 |
EBITDA |
436.6 |
660.5 |
Net
result from strategic joint ventures and associates |
31.0 |
11.3 |
Operating
result |
185.0 |
384.6 |
Impairment charges |
- |
842.6 |
EBIT |
185.0 |
-458.1 |
Net
profit adjusted for impairments |
150.5 |
276.4 |
Net
profit (loss) |
150.5 |
-563.7 |
Dividend
(proposal) per share (in EUR) |
1.00 |
1.00 |
|
|
|
|
31-12-2017 |
31-12-2016 |
Order
book |
3,495 |
2,924 |
Our share in the net result of
strategic joint ventures and associated companies is included in
EBIT(DA).
2016 EBITDA, operating result and net result from
associates are presented excluding impairment charges.
>>> click here for the full version of
the 2017 financial review including all the financial details
<<<
Live webcast
The Board of Management of Royal Boskalis Westminster N.V. will
comment on the 2017 full-year results at the analysts' meeting
(11.30 am - 12.30 pm CET) on 8 March 2018. This meeting can be
followed by means of a live audio cast, details of which can be
found on the corporate website (www.boskalis.com).
Publication of annual
report
Royal Boskalis Westminster N.V. will publish both its Annual Report
2017 and its Corporate Social Responsibility (CSR) Report 2017
today, 8 March. The reports, which are only published in English,
will be made available in the course of the day on
www.boskalis.com.
2018 |
FinanciAL CALENDAR |
8
March |
Publication of 2017 annual results |
9
May |
Trading
update on first quarter of 2018 |
9
May |
Annual
General Meeting of Shareholders |
11
May |
Ex-dividend date |
14
May |
Record
date for dividend entitlement (after market close) |
28
May |
Final
date for stating of dividend preference |
31
May |
Determination and publication of conversion rate for dividend based
on the average share price on 29, 30 and 31 May 2018 (after market
close) |
5
June |
Date of
dividend payment and delivery of shares |
16
August |
Publication of 2018 half-year results |
9
November |
Trading
update on third quarter of 2018 |
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).
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.
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 harbor towage and terminal
services (Kotug Smit Towage, Keppel Smit Towage, Saam Smit Towage
and Smit Lamnalco). With a versatile fleet of more than 900 vessels
and floating equipment and 10,700 employees, including associated
companies, Boskalis operates in 90 countries across six
continents.
This press release can also be found on our
website www.boskalis.com.
pdf version press release
Financial Review 2017
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
Royl.Boskalis (LSE:BOKA)
Historical Stock Chart
From Jun 2024 to Jul 2024
Royl.Boskalis (LSE:BOKA)
Historical Stock Chart
From Jul 2023 to Jul 2024