Boskalis posts H1 2022 results
Royal Boskalis Westminster N.V. (Boskalis) has concluded a strong first half year, according to the company's release. The utilization of the large vessels was high and with a strong increase in revenue, earnings also rose sharply, in particular due to an exceptional gain.
Compared to last year, revenue increased by 22% to EUR 1.61 billion (H1 2021: EUR 1.32 billion). Adjusted for (de)consolidation and currency effects, revenue growth was 20%.
EBITDA increased by 29% to EUR 292 million (H1 2021: EUR 226 million), including a book profit of EUR 50 million from the sale of Keppel Smit Towage. Operating profit including exceptional items increased by 47% to EUR 143 million (H1 2021: EUR 97 million).
Net profit amounted to EUR 116 million, including EUR 37 million in exceptional items, whereas a year ago a net profit of EUR 72 million was reported.
In the Dredging & Inland Infra segment, revenue increased by 46% compared to the same period in 2021 with a similar increase in EBITDA result. Where the effects of COVID-19 led to major operational inefficiencies over the past two years on projects in Asia in particular, strong growth is now coming from large projects in that region. In particular, the activities in Manila Bay have contributed to the strong revenue growth. Other noteworthy projects in progress include Tuas Terminal 2 and the Pulau Tekong Polder (both in Singapore), the Fehmarnbelt tunnel (between Denmark and Germany) and a large number of projects in the Netherlands. The hopper fleet was well utilized thanks to activities in the Philippines and at the end of the second quarter the extended Prins der Nederlanden was re-commissioned.
At Offshore Energy, revenue increased by 3% and the EBITDA result increased by 29%. A sharp decline in the contracting activities, partly due to a volume decline at Subsea Cables, was more than offset by a good half year at the services part of the division. The utilization of the heavy transport vessels in Marine Transport & Services was exceptionally high and also Subsea Services and Marine Survey had a very good operational half year. The strong demand from both the offshore wind market and the traditional oil and gas market was partly causing this. In the second quarter the new crane vessel Bokalift 2 was commissioned and has since been working on the sizable Changfang & Xidao offshore wind project in Taiwan.
Within the Towage & Salvage division, both revenue and earnings declined sharply. After a number of years with large high-profile projects at Salvage and significant settlement results from old projects, the first half of the year was quiet in terms of both revenue and earnings. At the end of June, the previously announced sale of the Keppel Smit Towage (KST) joint venture was successfully completed. The Towage activities are now mainly related to the terminal services of Smit Lamnalco.
Customary holding and unallocated group costs increased in the first half of the year compared to the same period in 2021. These costs were still at a relatively low level last year due to a wide range of COVID-19 related cost saving measures. In addition to the usual group expenses, a number of exceptional items of on balance EUR 36.9 million were recognized within the holding segment. A book profit was realized on the sale of KST and an impairment charge was recognized in the second quarter on equipment taken out of service.
The net financial position declined in line with expectations but is still strong. The exceptional net cash position at year-end 2021 has decreased to almost zero, largely due to the sizable investment program, the 2021 dividend and normalization of working capital. With the available cash and bank facilities, Boskalis has a readily available financing capacity of over EUR 900 million. Solvency remains high at 49% and Boskalis comfortably meets its financial covenants.
The order book remained virtually stable at EUR 5.37 billion (year-end 2021: EUR 5.41 billion). At Dredging & Inland Infra, more than EUR 0.5 billion worth of new work was taken on but the substantial revenue growth led to a net decrease in the portfolio. At Offshore Energy the workload rose sharply with the addition of EUR 1 billion in new projects, the largest share of which is related to offshore wind.
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 strategic partnership in terminal services (Smit Lamnalco).
