Boskalis posts record revenue for 2012

Thu Mar 14, 2013 2:01am EDT

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Papendrecht, 14 March 2013

Highlights of 2012

·         Record revenue of EUR 3.1 billion
·         Record order book of EUR 4.1 billion 
·         Net profit of EUR 250 million 
·         EBITDA of EUR 568 million
·         Proposed unchanged dividend: EUR 1.24 per share


·         Continued challenging market conditions in 2013
·         Integration and consolidation of Dockwise from second quarter 2013

Royal Boskalis Westminster N.V. (Boskalis) achieved a record revenue of EUR 3.1 billion in 2012
(2011: EUR 2.8 billion). Net profit amounted to EUR 250 million, thus remaining virtually stable
compared to 2011 (EUR 254 million). Despite the slight decline in net profit and a substantial
increase in the number of outstanding shares as a consequence of the recent equity issue in
connection with the acquisition of Dockwise, Boskalis intends to pay-out an unchanged dividend of
EUR 1.24 per share.

EBITDA dropped to EUR 568 million (2011: EUR 591 million) and the operating result (EBIT) fell to
EUR 337 million (2011: EUR 354 million). The contribution from Dredging declined as a consequence
of lower volume of work. Challenging market conditions in Inland Infra led to a lower result with
an increase in revenue. The remaining activities, Offshore Energy and Towage & Salvage, achieved a
respectively virtually stable and slightly higher operating result. 

The order book increased to EUR 4.106 million as per end-2012 (end-2011: EUR EUR 3.489 million).
Compared to the 2012 mid-year level the order book was also higher at the end of the year. 

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Peter Berdowski, CEO Boskalis:

"Despite the challenging market conditions we look back on a fine year in which we took major
steps in further strengthening and expanding the company. 2012 was a year in which a broad
recovery of the global economy failed to materialize. Against that background we turned in a good
performance with record revenue and an all-time high order book of EUR 4.1 billion, evenly spread
across all our activities. 

While executing and acquiring works kept us busy, we continued to expand the business within the
strategic framework of our business plan. In addition to completing the integration with SMIT we
took an important step with the acquisition of Dockwise. The combination will sharply grow our
position in the offshore energy sector and allow us to offer new perspectives to both our clients
and our staff. 

No material change is expected in market conditions in 2013, with volumes and margins remaining
under pressure. Based on the current level of the order book we expect healthy utilization levels
of the equipment, in particular the hoppers. Furthermore 2013 will revolve around the integration
and consolidation of Dockwise. Together with the management of Dockwise we have already taken the
first concrete steps in this direction."


Market Developments
The markets in which Boskalis operates are driven in the long term by growth in global trade,
energy consumption and the world's population, as well as by the effects of climate change.

The medium-term picture is mixed for the markets in which we operate. On the one hand we are
seeing continued reluctance on the part of governments, particularly in Europe, to invest. On the
other we are seeing private initiatives for new infrastructure projects being developed by clients
in various regions of the world and across the different market segments. This applies in
particular to energy and raw materials-related projects in South America, West Africa and
Australasia as well as to port developments outside of Europe. 

Market developments in the offshore energy market have a bearing on a substantial part of our
business. We expect demand for and construction of new oil and LNG import and export terminals
(Dredging and Dockwise) to lead to growth in terminal services (Smit Lamnalco). 

For the rest, developments at Offshore Energy are strongly dependent on an upturn in demand from
the energy markets, particularly those in North-West Europe, Brazil and Southeast Asia.

Capital expenditure for the coming year is expected to be around EUR 325 million, excluding
Dockwise which can be funded form the cash flow. The acquisition financing for Dockwise and the
refinancing of existing Dockwise and Boskalis bank facilities will push up the total debt
position. Subsequent to the (re)financing, Boskalis will retain a solid financial position. 

For 2013, we expect that the current market developments will once again have a dampening effect
on the structurally positive trends that underpin our strategy. Current information suggests that
the year ahead will bring little change to the market picture compared to 2012. At Dredging we
expect to see healthy fleet utilization levels and a stable operating margin development. The same
outlook also applies to the other activities Offshore Energy, Inland Infra and Towage & Salvage. 

The project-based nature of a significant part of our activities tends to make it difficult to
give a specific quantitative forecast of the full-year result early on in the year. In addition
the 2013 result will be strongly influenced by the consolidation of Dockwise (from the beginning
of the second quarter of 2013), the possible sale of our 40% stake in Archirodon and the customary
exceptional (one-off) effects associated with an acquisition. In light of these factors we are
currently unable to provide quantitative guidance with regard to the 2013 full-year result.

Dividend Policy And Proposal

The main principle underlying the Boskalis dividend policy is to distribute 40% to 50% of the net
profit from ordinary operations as dividend, whereby Boskalis aims to achieve a stable development
of the dividend for the longer term. The choice of dividend form (in cash and/or entirely or
partly in shares) takes into account the company's desired balance sheet structure as well as the
interests and wishes of the shareholders.

Despite the slightly lower net profit and a substantial increase in the number of outstanding
shares due to the recent equity issue in connection with the acquisition of Dockwise, Boskalis
intends to pay-out an unchanged dividend of EUR 1.24 per share. This equates to a profit payout of
58%. In light of this, Boskalis will propose to the Annual General Meeting of Shareholders on 8
May 2013 that a dividend of EUR 1.24 per share be distributed in the form of ordinary shares,
unless the shareholder opts to receive a cash dividend. The dividend will be payable from 4 June

 Key figures                            2012        2011 
 (in millions of EUR)                                    
 Revenue                               3,081       2,801 
 EBITDA                                  568         591 
 Operating profit                        337         354 
 Result of associated companies          0.3         2.0 
 Net profit                              250         254 
 Dividend per share (in EUR)            1.24        1.24 
                                  31-12-2012  31-12-2011 
 Order book                            4,106       3,489 

Click here  for the full version of the press
release including all the financial details

Live Audio Webcast

The Board of Management of Royal Boskalis Westminster will comment on the 2012 full-year results
at the analyst meeting (11.15 am - 12.30pm CET) on 14 March 2013. This meeting can be followed by
means of a live audio webcast (Dutch spoken with a simultaneous translation), details of which can
be found on the homepage (

Publication of Annual Report
Royal Boskalis Westminster N.V. will publish both its 2012 Annual Report and its 2012 Corporate
Social Responsibility (CSR) report today. These reports are being released in both Dutch and
English and will be available at from 11.00 CET.

 FINANCIAL AGENDA  2013                                                                                                                                                            
 14 March          Publication of 2012 Annual Report                                                                                                                               
 14 March          Publication of 2012 CSR Report                                                                                                                                  
 8 May             Trading update on first quarter 2013                                                                                                                            
 8 May             General Meeting of Shareholders                                                                                                                                 
 10 May            Ex-dividend date                                                                                                                                                
 14 May            Record date for dividend entitlement (after market close)                                                                                                       
 27 May            Final date for stating preference for dividend in cash or shares                                                                                                
 30 May            Determination and publication of conversion rate for stock dividend based on the volume-weighted average share price on 28, 29 and 30 May (after market close)  
 4 June            Date of dividend payment and delivery of shares                                                                                                                 
 15 August         Publication of 2013 half-year results                                                                                                                           
 15 November       Trading update on third quarter of 2013                                                                                                                         

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.



Investor Relations:

Martijn L.D. Schuttevâer 


Arno Schikker 

T +31 78 6969310

F +31 78 6969020

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 through the construction and maintenance of ports and waterways, land
reclamation, coastal defense and riverbank protection. In addition Boskalis executes projects and
offers a wide variety of marine services for the offshore energy sector including subsea,
transport, heavy lift and installation services (carried out by Boskalis Offshore) and performs
towage services and marine salvage work (carried out by SMIT). Boskalis also has strategic
partnerships in the Middle East (Archirodon) and in terminal services (Smit Lamnalco). Boskalis
has a versatile fleet of over 1,100 units and operates in around 75 countries across six
continents. Including its share in partnerships, Boskalis has approximately 15,600 employees. 

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