Boskalis trading update: first quarter in line with expectations
Papendrecht, 12 May 2022
Royal Boskalis Westminster N.V. (Boskalis) announces that the
first quarter of 2022 proceeded in line with expectations. Both the
market picture and the operational and financial developments are
in line with the expectations as outlined at the announcement of
the 2021 annual results in mid-March.
HIGHLIGHTS FIRST QUARTER
2022
- Strong increase in revenue compared to the first quarter of
2021 with a slightly higher EBITDA
- Good utilization of the hopper fleet at Dredging and the
transport fleet at Offshore Energy
- Order book virtually stable at EUR 5.47 billion
- Renewables accounts for more than 60 percent of order book
Offshore Energy
- Robust financial position despite sharp decline in net cash
position
- Increase in 2022 EBITDA guidance
OPERATIONAL AND FINANCIAL
PERFORMANCEBoskalis started 2022 with a good first
quarter considering market conditions, helped by the well-filled
order book. Compared to the same period last year, revenue
increased strongly on a slightly higher EBITDA. The utilization of
the large vessels was good and increased compared to the 2021 full
year level. The order book position at the end of the quarter was
virtually stable at EUR 5.47 billion compared to the level at
the end of 2021. The exceptionally strong financial position at the
end of 2021 decreased by more than EUR 300 million due to
capital expenditures and a normalization of working capital.
Dredging & Inland InfraThe Dredging &
Inland Infra division’s revenue increased significantly compared to
the first quarter of last year, mainly due to the activities in the
bay of Manila that also contributed to the healthy utilization
level of the trailing suction hopper dredgers.
Other noteworthy projects in progress included Tuas Terminal 2
and the Pulau Tekong Polder (both in Singapore), the Fehmarnbelt
tunnel (between Denmark and Germany) and in the Netherlands, the
Markermeerdijken project, the N206 and the construction of an
inland harbor in Spijk.
The utilization of the hopper fleet was good and fractionally
higher than the healthy level in 2021. The two large cutter suction
dredgers were idle during the first quarter with the Helios to be
deployed on the Tuas Terminal 2 project in Singapore in the course
of the second quarter.
Early this year, the trailing suction hopper dredger Prins der
Nederlanden was temporarily taken out of service for an extension
at a yard in Singapore. The conversion is expected to be completed
by the middle of this year, after which the vessel will be
redeployed in the region with an increased hopper capacity of
approximately 22,000 cubic meters. The extension of the sister
vessel Oranje is planned for the second half of the year.
The order book of Dredging & Inland Infra decreased slightly
compared to the end of 2021. During the quarter, mainly small to
medium-sized projects were acquired in Europe.
Offshore EnergyThe first quarter at Offshore
Energy proceeded in line with expectations with a revenue level
comparable to the first quarter of 2021.
The contracting part of the division consists of Seabed
Intervention, Heavy Lifting (including offshore wind foundations)
and Subsea Cables. At Seabed Intervention, the offshore wind
projects Yunlin (Taiwan) and Fécamp (France) contributed to the
revenue. At Subsea Cables, 2022 is expected to be a relatively
quiet year compared to previous years and Ostwind 2 is the largest
project in progress. Heavy Lifting was busy with preparations for
the transport and installation of foundations in Taiwan where the
new crane vessel Bokalift 2 is expected to enter service on the
Changfang & Xidao project later this quarter.
The services part of the division consists of Marine Transport
& Services, Subsea Services and Marine Survey. At Marine
Transport, the BOKA Vanguard was fully occupied with the transport
of the FPSO Johan Castberg from Singapore to Norway, thereby
contributing to the increased utilization level of the heavy marine
transport vessels, in excess of the 2021 full year level. At Marine
Survey, revenue increased compared to the beginning of last year,
partly due to a shift of work from 2021 and partly due to strong
demand in the Middle East. At Subsea Services, favorable weather
conditions contributed to an early start on the North Sea resulting
in a higher vessel utilization and revenue compared to the same
period in 2021.
A number of offshore wind projects were acquired in the first
quarter, including the export cable for Hollandse Kust West Beta.
On balance, the Offshore Energy order book increased by 20 percent
compared to the end of 2021. Boskalis successfully acquired another
substantial cable project in the course of the second quarter for a
new offshore wind farm to be constructed off the east coast of the
United States, bringing the share of offshore wind projects to more
than 60 percent of the order book.
Towage & SalvageSalvage had a relatively
busy first quarter with several emergency response assignments,
including the salvage of the Euroferry Olympia off the Greek island
of Corfu, and a wreck removal project off the west coast of
India.
The contribution from the Towage joint ventures mainly relates
to the terminal services of Smit Lamnalco. Compared to last year
the quarterly result was lower. In anticipation of the announced
sale, the Singaporean towage activities are held as assets held for
sale as per the end of 2021 and therefore no longer contribute to
the segment result. The sale of these activities is expected to be
completed later this year.
FINANCIAL POSITIONThe high net cash position of
EUR 203 million at year-end 2021 decreased by more than
EUR 300 million, mainly due to capital expenditure and a
normalization of working capital. With the available cash and bank
facilities, Boskalis has a directly available financial headroom in
excess of EUR 850 million. The company comfortably meets
its financial covenants.
On 15 March, HAL Investments, together with Stichting Hyacinth,
acquired a combined stake of more than 50% in Boskalis. This event
triggered a change of control in a number of its financing
arrangements. After this change of control, all the banks and
almost all of the other financing parties concerned, have confirmed
the continuation of the financing facilities at unchanged terms and
conditions.
OUTLOOKBoskalis is in good shape with a
well-filled order book and a robust financial position. The market
outlook appears favorable for the short and medium term, although
unforeseen developments such as those resulting from the
geopolitical situation in Eastern Europe could affect this.
Given the project-based nature of a significant part of our
business, it is difficult to make quantitative statements about the
annual result for 2022. However, with the developments in the first
quarter and the well-filled order book, there is a solid basis to
increase the earnings guidance which initially stated that the 2022
EBITDA was expected to equal that of 2021. Based on the vessel
planning and projects in hand, and barring unforeseen
circumstances, the Board of Management expects the 2022 EBITDA will
exceed last year’s EUR 462 million. Capital expenditure in 2022 is
expected to amount to approximately EUR 450 million including dry
dockings and in line with previous guidance. This does not include
any acquisitions.
In mid-March, at the announcement of the 2021 annual results,
Boskalis indicated that it was considering a new share buy-back
program. This intention has been suspended indefinitely in light of
the announced intended offer by HAL.
UPDATE REGARDING HAL OFFERReference is made to the Boskalis
press releases dated 10 March 2022 and 8 April 2022 in connection
with the intention of HAL Holding N.V. (HAL) to make a voluntary
public offer for Boskalis as set out in HAL’s press release of 10
March 2022.
The Supervisory Board and Board of Management of Boskalis are in
discussion with HAL to explore whether agreement can be reached in
respect of the proposed transaction. Boskalis will inform the
market via a press release on any important developments or when
appropriate.
Financial Agenda
2022-2023 |
|
12 May
2022 |
Annual General
Meeting of Shareholders |
16 May
2022 |
Ex-dividend
date |
17 May
2022 |
Record date
for dividend entitlement (after market closes) |
24 May
2022 |
Dividend
payment date |
18 August
2022 |
Publication of
2022 half-year results |
11 November
2022 |
Trading update
Q3 2022 |
9 March
2023 |
Publication of
2022 annual results |
11 May
2023 |
Trading update
Q1 2023 |
11 May
2023 |
General
Meeting of Shareholders |
17 August
2023 |
Publication of
2023 half-year results |
10 November
2023 |
Trading update
Q3 2023 |
Consensus EstimatesBoskalis collects earnings
estimates from those sell-side analysts that follow Boskalis prior
to the publication of the (semi-)annual figures and planned trading
updates. The average of these estimates (consensus estimates) can
be consulted on the Boskalis website boskalis.com/IR/estimates.
FOR FURTHER INFORMATION
Investor relations:Martijn L.D.
Schuttevâerir@boskalis.com
Press:Arno Schikkerpress@boskalis.comT +31
786969310
This is a Boskalis press release on the grounds of
article 17 paragraph 1 of the European Market Abuse Regulation
(596/2014). This press release does not constitute an offer, or any
solicitation of any offer, to buy or subscribe for any securities
of Royal Boskalis Westminster N.V.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 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 over 600 vessels and floating equipment and more than
10,000 employees, including associates, Boskalis is creating new
horizons around the world.
This press release can also be found on our website
www.boskalis.com.
- Boskalis Trading Update ENG 12052022
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