Boskalis posts EUR 148M net profit for 1H2016
Royal Boskalis Westminster N.V. (Boskalis) realized a net profit of EUR 147.5 million in the first half of 2016 (H1 2015: EUR 306.5 million). Revenue in the first half of the year fell 25% compared to the first half of last year to EUR 1.17 billion (H1 2015: EUR 1.57 billion). Whereas the first half of 2015 was extremely busy, revenue declined in the first half of this year as a result of the deteriorated market conditions, the Company said in its 1H peformance report.
EBITDA in the first half of the year totaled EUR 317.6 million and the operating result (EBIT) was EUR 182.4 million (H1 2015 EBITDA: EUR 500.1 million, EBIT: EUR 359.3 million).
In the Dredging & Inland Infra segment revenue and the result declined as a result of weak market conditions and the completion of the Suez Canal project that made a substantial contribution last year. Furthermore, fleet utilization was adversely affected by the suspension of work on the Pluit project in Indonesia. Results on projects in progress were reasonable to good.
Offshore Energy managed to have a good first half of the year despite market conditions and the resulting lower revenue and fleet utilization. The EBIT and EBITDA margins were virtually stable compared to the same period last year.
At the start of April Boskalis' 50/50 joint venture with KOTUG aimed at combining the European harbour towage activities together was effected. This joint venture has been reported under joint ventures and associated companies as of the second quarter. Due in part to this, revenue in the Towage & Salvage segment declined in the first half of the year compared to 2015. Salvage had a busy start to the year with various emergency response assignments, but the result declined on balance due to the absence of larger wreck removal projects.
In accordance with IFRS the inclusion of SMIT Towage Northwest Europe in the joint venture with KOTUG must be recognized as a sales transaction and a subsequent acquisition of a minority stake. This 'sale' resulted in a book profit of EUR 37.0 million after taxation in the first half of the year. Our stake in the (adjusted) loss incurred by Fugro in the first half of the year was EUR 27.9 million.
At the end of the first half of the year the order book excluding our share in the order book of joint ventures and associated companies stood at EUR 2,697 million (end-2015: EUR 2,490 million). The offshore activities acquired from VolkerWessels on 1 July will be included in the order book as of the third quarter.
