Boskalis posts strong first half year

Papendrecht, 20 August 2009

Highlights first half year 2009

• Net profit  102.7 million (1H 2008:  110.0 million excl. non recurring income)
• Revenue  989 million (1H 2008:  938 million)
• High fleet utilization levels
• Well-filled order book of 3.0 billion

Outlook for 2009

• Net profit for the second half of the year expected to be comparable to the first half of 2009
• Full-year revenue comparable to the 2008 level ( 2.1 billion)
• Healthy operating margins
• Capital expenditure of approximately 300 million

Royal Boskalis Westminster N.V. realized a net profit of 102.7 million in the first half of 2009. In the first half of 2008 the company realized a net profit of 110.0 million, excluding a non-recurring gain relating to the W.D. Fairway ( 92.0 million).

Boskalis benefited from its broad, well-filled order book in the first half of 2009, resulting in solid equipment utilization levels as well as good margins.

Revenue increased to 989 million, with growth being achieved in the home markets and the offshore activities within the Dredging & Earthmoving segment as well as in the Maritime Infrastructure segment. Included in the earnings are Boskalis' share in Smit Internationale's first-half year result ( 13.1 million) and a positive hedge result on the Port Rashid project ( 7.2 million). The net order intake amounted to  622 million in the first half of the year, bringing Boskalis' well-filled and broadly spread order book to  3.0 billion.

 Peter Berdowski, CEO: "Despite difficult economic times we turned in a strong performance in the first half of the year. The utilization rate of our vessels was solid and revenue has remained robust. In addition, our margins on running projects are healthy, largely thanks to the selective contracting policy we have pursued in the past few years. This allowed us to start the year with an order book that was well filled and - above all - broadly spread.
                              
It is owing to this strong order book that we continue to have a positive outlook on the rest of 2009. The outlook for the period thereafter is less clear. In some market segments clients are adopting a more hesitant attitude to their investment decisions. On the other hand, we are seeing positive developments in offshore and in government infrastructural projects. For the coming years, we are anticipating a decline in volumes in the global dredging market. To prepare the company for this decline we have initiated a fleet rationalization program."

Market Developments
The global dredging and marine contracting market is driven by factors such as growth in world trade, the global population, energy consumption and the effects of climate change. All these factors have resulted in a period of unbridled growth in the past few years.

Impacted by the global recession, these positive market conditions have changed drastically since September 2008. Although long-term structural growth factors for dredging and marine contracting remain positive, a great deal has changed for the short term. Commodity prices have decreased sharply and global trade is stagnating and these factors are affecting demand for our products and services.

Outlook
Full-year revenue in 2009 is expected to be comparable to the level achieved in 2008. The Board of Management expects the result in the second half of 2009 to be comparable to the result achieved in first half of the year. The level of investment will be around 300 million in 2009.

Boskalis is taking into account a drop in volumes in global dredging markets in the coming years. To prepare the company for this Boskalis has initiated a fleet rationalization program.

Key Figures

Click here for the half year report including all financial tables
The half year report including all financial tables is also available on www.boskalis.com 

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.

Royal Boskalis Westminster N.V. is a leading global services provider operating in the dredging, maritime infrastructure and maritime services sectors. We provide creative and innovative all-round solutions to infrastructural challenges in the maritime, coastal and delta regions of the world including the construction and maintenance of ports and waterways, land reclamation, coastal defense and riverbank protection. The company holds important home market positions in and outside of Europe and targets all market segments in the dredging industry. It also has positions in strategic partnerships in the Middle East (Archirodon) and in offshore services (Lamnalco). Boskalis has a versatile fleet of over 300 units and operates in over 50 countries across five continents. Including its share in partnerships, Boskalis has approximately 10,000 employees.

For further information please contact:

Martijn L.D. Schuttevâer
Director of Investor Relations & Corporate Communications

This press release can also be found on our website www.boskalis.com