Highlights of 2013
- Record revenue of EUR 3.5 billion
- Record net profit of EUR 366 million
- EBITDA of EUR 800 million
- Order book at EUR 4.0 billion
- Proposed unchanged dividend of EUR 1.24 per share
Outlook
- Stable market conditions in 2014
- Updated Business Plan 2014-2016
- Share buyback program for 2014-2016: 10 million shares
"Last year was another turbulent year - both in the market and for our company. A year in which we acquired Dockwise and took another major step in expanding the company. It was also an excellent year from a financial perspective, with the company breaking many of its records. In order to focus the group and set priorities we have prepared an updated business plan, the key points of which are presented in the 2013 Annual Report. This plan lays the foundation for the further development of Boskalis. The Business Plan provides for further targeted expansion of the offshore energy activities in the area of Transport, Logistics & Installation by means of selective investments in equipment and the organization. We expect capital expenditure of around EUR 800 million in the next three years, roughly in line with the level of depreciation.
At the beginning of 2013 we issued just under ten million new shares as a capital buffer for the acquisition of Dockwise. In view of our sound balance sheet and projected cash flow we plan to start a share buyback program for ten million shares in the period 2014-2016."
Market developments
The markets in which Boskalis operates are driven by growth in global trade, energy consumption and the world's population, as well as by the effects of climate change. Recent research has confirmed that these trends will continue in the longer term despite regional economic stagnation. In the short term we are assisted by the growing demand for deep sea ports with the ability to cater to the new generation of bulk carriers and container ships, as well as by the increasing shift towards (complex) offshore locations for oil and gas extraction. Boskalis expects market conditions for its Dredging and Towage activities to be stable in the next three years, with scope for growth mainly seen for Offshore Energy in the area of Transport, Logistics & Installation. There are clear opportunities here for Boskalis with its combination of assets and expertise following the acquisitions of SMIT and Dockwise. Boskalis can further strengthen its position in this segment through targeted investments in ships or through acquisitions, for example the recent takeover of Fairmount with its leading position in the global market for oceangoing tugs.Outlook
Current information suggests that no major changes are to be expected in the market environment compared to 2013. At Dredging and Offshore Energy we once again expect healthy fleet utilization levels in the first half of the year. After a strong 2013 for Dredging the absence of comparable extraordinary effects will result in a lower operating margin in 2014. The outlook for Offshore Energy, Inland Infra and Towage & Salvage is stable compared to 2013. The project-based nature of a significant part of our activities tends to make it difficult to give a specific quantitative forecast for the full-year result early on in the year. In light of this we are currently unable to provide quantitative guidance with regard to the 2014 full-year result. Boskalis has a very sound financial position. Maintaining a healthy balance sheet is an important principle underlying the business plan for the 2014-2016 period, whereby we aim for a net debt: EBITDA ratio in a range of 1 to 1.5 times. Total capital expenditure for the renewal and strengthening of the fleet is projected at around EUR 800 million in the next three years, of which around EUR 300 million in 2014. This amount is in line with the level of depreciation and excludes of any possible acquisitions. The business plan is based on current expectations with regard to global developments in the market segments that are relevant to us, in particular the Offshore Energy market. Based on these plans we expect to realize a return on equity of approximately 12% in the coming years. Within this framework and based on these principles Boskalis intends to launch a share buyback program for 10 million shares. The program will be executed in the period 2014-2016, subject to the development of results and maintaining the desired balance sheet ratios. The repurchasing of shares is also subject to annual approval by the General Meeting of Shareholders.Dividend policy and dividend proposal
The main principle underlying the Boskalis dividend policy is to distribute 40% to 50% of the net profit from ordinary operations as dividend, with Boskalis aiming 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. In light of this, Boskalis will propose to the General Meeting of Shareholders to be held on 13 May 2014 that the dividend be kept at the 2012 level of EUR 1.24 per share and distributed in the form of ordinary shares, unless the shareholder opts to receive a cash dividend. The dividend will be payable from 11 June 2014. >>> Click here for the full version of the press release including all the financial details <<<| Key figures | 2013 | 2012 |
| (in millions of EUR) | ||
| Revenue | 3,539 | 3,081 |
| EBITDA | 800 | 567 |
| Operating profit | 466 | 336 |
| Result of associated companies | 20.2 | 0.3 |
| Net profit | 366 | 249 |
| Dividend per share (in EUR) | 1.24 | 1.24 |
| 31-12-2013 | 31-12-2012 | |
| Order book | 4,005 | 4,106 |
Live audio webcast
The Board of Management of Royal Boskalis Westminster N.V. will comment on the 2013 full-year results and the 2014-2016 Corporate Business Plan at the analyst meeting (11.30 am - 1.30 pm CET) on 13 March 2014. 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 (www.boskalis.com).Publication of Annual Report
Royal Boskalis Westminster N.V. will publish both its 2013 Annual Report and its 2013 Corporate Social Responsibility (CSR) report today. These reports are being released in the course of the day on 13 March in both Dutch and English through www.boskalis.com. The 2013 Annual Report also provides further details of the new Corporate Business Plan for the period 2014-2016.Audit
The 2013 Annual Report has been audited by KPMG and issued with an unqualified independent auditor's report. As agreed under the settlement reached between KPMG and the Dutch Public Prosecutor's Office at the end of 2013, KPMG has confirmed on issuing the unqualified independent auditor's report that its internal dossier review into previous years at Boskalis has been concluded. The investigation outcome did not reveal any findings.2013 is the last year for which the audit has been performed by KPMG. As part of the mandatory rotation of audit firms it will be proposed to the General Meeting of Shareholders that EY be appointed as the company's auditor with effect from the 2014 financial year. >>> Click here for the full version of the press release including all the financial details <<< FOR FURTHER INFORMATION
Investor relations:
Martijn L.D. Schuttevâer
ir@boskalis.com Pers:
Arno Schikker
press@boskalis.com T +31 78 6969310
Financial agenda | 2014 |
| 13 March | Publication of 2013 annual figures and Annual Report 2013 |
| 13 May | Trading update on first quarter 2014 |
| 13 May | General Meeting of Shareholders |
| 15 May | Ex-dividend date |
| 19 May | Record date for dividend entitlement (after market close) |
| 2 June | Final date for stating preference for dividend in cash or shares |
| 5 June | Determination and publication of conversion rate for stock dividend based on the volume-weighted average share price on 3, 4 and 5 June (after market close) |
| 11 June | Dividend payment and delivery of shares |
| 14 Augustus | Publication of 2014 half-year results |
| 14 November | Trading update on third quarter 2014 |
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