Royal Boskalis Releases Quarter Results
Royal Boskalis Westminster N.V. (Boskalis) released information on its last quarter results showing revenue unchanged compared to the first quarter of 2017, stable fleet use for dredging, and continued pressure on margins particularly in offshore energy. Results also show increases in the order book partly due to two dredging contracts in Singapore.
Revenue at the Dredging & Inland Infra division rose compared to the first quarter of last year. Notable projects included Duqm (Oman), JNPT (India), Nordvikkudden (Sweden) and PCCP (Panama) along with various Room for the River projects in the Netherlands.
In comparing fleet use between 2017 and 2018, use of the hopper dredge fleet was stable, use of the cutter fleet in the first quarter was good following a quiet 2017, and the mega cutter suction dredger Helios, which was taken into service last year, made a good contribution on the Duqm project during the quarter under review.
Notable new projects contracted this year include the expansion of the Singapore Tuas Mega Port, the development of a polder in the northeastern part of Singapore, the deepening of the Nieuwe Waterweg in the Port of Rotterdam and a maintenance contract for the UK Ministry of Defence. The recently announced EUR 85 million contract from the City of Amsterdam to construct an artificial island in the IJmeer lake is not included in the first quarter.
The company does not expect to match its 2017 result, largely due to lower volumes of work in the oil and gas-related segments, although LNG-related activities and offshore oil activities in the Middle East are showing tentative signs of recovery.
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. The net debt position increased in the first quarter, partly as a result of the share buy-back program, investments, the development of the result and the partly seasonal movements in working capital. Boskalis has a very sound financial position and comfortably meets its financial covenants.
