Papendrecht May 14, 2009
Developments in 2009 to date at Royal Boskalis Westminster N.V. are in line with expectations.
- Revenue comparable with the same period last year
- Equipment utilization down slightly on last year
- Order intake comparable with the same period last year
- Order book down slightly compared to year-end 2008
- 2009 full year earnings are expected to be lower than the record level of 2008
Review of operations
So far in 2009, Royal Boskalis Westminster N.V. has booked revenue comparable with the same period in 2008. The utilization rate for the equipment was down slightly on last year, mainly as a consequence of a number of planned large repairs.
In recent months, Boskalis acquired contracts with a broad spread across the various market segments and geographic regions. Early this year, three oil- and gas-related contracts came in for projects in Europe and the Middle East. Boskalis also won contracts for the expansion of, among others, the ports of Nassau (Bahamas) and Gijon (Spain). Recently, the contract was signed for the large-scale clean-up of the Fox River in the USA. The value of the incoming orders in the early months of 2009 was comparable with 2008. Historically, the level of incoming orders in the first six months of the year is less than a third of the annual total. On balance, the order book was down slightly compared to the level at year-end 2008.
In late 2008, the order book was cleared of projects that are no longer expected to be executed or are expected to suffer significant delay. Since then, there have been no developments meriting further adjustments to the order book.
The financial position of Boskalis continues to be strong. The company is net debt free and has a solid cash position.
Peter Berdowski, CEO:
"In the first four months of this year, we reaped the fruits of our selective contracting strategy over the past few years. Thanks to that policy, the order book was well-filled, above all with a broad spread of work, at the start of the year. As a result, revenue and the utilization rate for the fleet are up to scratch. The margins for the work in progress are healthy, although there are considerably fewer cherries to be picked relative to the last two years. Order intake was at the same level as last year, but clients are becoming increasingly cautious about their investment decisions."
Smit International N.V.
On January 29, Boskalis announced that it increased its holding in Smit Internationale N.V. to 25.07%. The interest that Boskalis has expressed in parts of Smit ensues from its value-driven growth strategy. Boskalis is mainly interested in the Smit businesses that fit within this strategic framework. By acquiring the terminal activities of Smit, Lamnalco can become a global market leader in terminal services. Besides this, Boskalis can extend and strengthen its rapidly growing and attractive offshore business with Smit.
Mr R.M.F. van Loon resigned his position as Chairman and member of the Supervisory Board on 17 March 2009 for health reasons. Mr H. Heemskerk took over from Mr Van Loon as the Chairman of the Supervisory Board.
Boskalis has a well-filled order book with a broad spread and expects the equipment to be well utilized in 2009. Revenue for 2009 as a whole is expected to be comparable to 2008. 2009 full year earnings will be lower than the record level of 2008.
Boskalis will announce its 2009 half year results on 20 August 2009.
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. Boskalis provides 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
Telephone: +31 78 69 69 822 / +31 6 200 10 232
Telefax: +31 78 69 69 020
This press release can also be found on our website www.boskalis.com