Boskalis first quarter in line with expectations
Papendrecht, 12 May 2021
The market picture and developments in the first quarter at
Royal Boskalis Westminster N.V. (Boskalis) are in line with
expectations as outlined at the announcement of the 2020 annual
results.
HIGHLIGHTS FIRST QUARTER
2021
- Revenue virtually stable compared to Q1 2020 with a higher
result
- Effects of the COVID-19 pandemic continue to be felt throughout
the operation
- Reasonable fleet utilization in both Dredging and Offshore
Energy
- Further increase in order book to record level of EUR 5.6
billion
- Sustained strong financial position; net cash position of EUR
275 million and a directly available financial headroom of more
than EUR 1 billion
OPERATIONAL PERFORMANCEWhen the 2020 annual
results were announced, the expectation was that the first half of
2021 would be reasonably stable as a result of the COVID-19 related
restrictions with a gradual improvement in the second half of the
year. The first quarter developments were in line with this
expectation.
Compared to the same period last year, revenue was almost stable
with a higher result. The utilization of the large vessels (hopper
fleet at Dredging and heavy marine transport vessels at Offshore
Energy) was almost stable compared to the 2020 full year level. The
order book position at the end of the quarter increased by
approximately EUR 270 million compared to the record level at the
end of 2020 to EUR 5.6 billion. The net cash position decreased in
line with expectations but the financial position is still very
solid.
Dredging & Inland InfraRevenue at the
Dredging & Inland Infra division decreased compared to the
first quarter last year, mainly due to the timing of certain
projects in the Netherlands and COVID-19 related operational
disruptions.
Noteworthy projects in progress included LNG Canada, Pulau
Tekong Polder and Tuas Terminal 2 (both in Singapore), Fehmarnbelt
tunnel (between Denmark and Germany), Romanian Beaches and the
sizable Markermeerdijken project from the Dutch national Flood
Protection Program, as well as several other medium-sized projects
in the Netherlands.
The utilization of the hopper fleet was at a similar level to
the 2020 full year rate and therefore good given the circumstances.
The two large cutter suction dredgers were idle in the first
quarter in line with expectations with anticipated deployment as
from the summer in the Philippines and Singapore respectively.
In the first quarter, the investment decision was taken to
lengthen the trailing suction hopper dredger Oranje. This
investment is part of the corporate business plan presented last
year. For the extension, the Orange will be taken out of service
for four months in the second half of 2021, after which the vessel
will return to service in the first quarter of 2022 with
approximately 33% percent more loading capacity with a hopper
capacity of approximately 21,000 cubic meters.
The Dredging & Inland Infra order book increased slightly
compared to the end of 2020. The largest project addition related
to the Oosterweel link in Belgium, in addition to a variety of port
and energy projects (both LNG and offshore wind). After the end of
the quarter, the provisional award was received for the extensive
Meanderende Maas dike reinforcement project, which is also part of
the aforementioned Dutch Flood Protection Program.
Offshore EnergyThe first quarter at Offshore
Energy proceeded in line with expectations with a slightly higher
revenue level compared to the first quarter 2020.
The contracting part of the division consists of Seabed
Intervention, Heavy Lifting (including offshore wind foundations)
and Subsea Cables. At Seabed Intervention, the main revenue
contribution came from a Floating Storage and Regasification Unit
project in El Salvador as well as the Yunlin offshore wind project
in Taiwan. Subsea Cables had a relatively busy quarter with
projects including Ostwind 2 and Morray East in progress. At Heavy
Lifting, engineering preparations are in full swing for the
Changfang & Xidao project that will enter its execution phase
in Taiwan later this year.
The services part of the division consists of Marine Transport
& Services, Subsea Services and Marine Survey. At Marine
Transport, the BOKA Vanguard was fully utilized with the transport
of the Argos Floating Production Unit. The utilization of the rest
of the fleet showed a mixed picture, partly due to the rescheduling
of a project into the second half of the year. On balance, the
utilization of the heavy marine transport vessels was fractionally
lower compared to 2020 full year. At Marine Survey, revenue
decreased compared to early last year following an exceptionally
busy first quarter 2020 in the Middle East. At Subsea Services, the
acquisition of Rever Offshore at the end of 2020 and the associated
fleet expansion contributed to a substantial growth in revenue.
Significant steps were taken in the quarter with the integration of
Rever Offshore contributing positively to earnings.
A number of vessels were recently added to the Offshore Energy
fleet. In early January, this was the Boka Tiamat, a multi-purpose
offshore construction vessel. This vessel will initially be used
for offshore wind projects in Taiwan. In late March, the Lewek
Fulmar was acquired, the sister vessel of the Boka Falcon that was
added to the fleet in 2019. In early April, the large CSV Southern
Ocean was acquired. The vessel can be deployed on a broad variety
of projects throughout the division. At Marine Survey, the new
geophysical survey vessel the Ocean Resolution was commissioned and
has been in full operation since the first quarter. Furthermore,
two vessels were recently purchased that will be converted in the
coming months into respectively a geotechnical (Horizon
Geodiscovery) and a geophysical (Ocean Geograph) survey vessel.
Finally, the conversion of the Bokalift 2 crane vessel is
progressing well. The vessel will be deployed on the Changfang
& Xidao wind project immediately upon completion.
A wide variety of new projects were taken on in the quarter and
the Offshore Energy order book increased by approximately 10
percent compared to the end of 2020. The share of offshore wind
projects in the order book is approximately 50 percent.
Towage & SalvageAt Salvage the start of
2021 was marked by several challenging projects, including the
salvage of the VLCC New Diamond, the refloating of the Ever Given
in the Suez Canal and the salvage of the freighter Eemslift
Hendrika. Salvage revenue was at a similar level compared to the
first quarter of 2020. The contribution of the Towage joint
ventures was higher than last year due to a combination of
factors.
FINANCIAL POSITIONThe exceptionally high net
cash position of EUR 439 million at year-end 2020 decreased by
almost EUR 165 million to EUR 275 million, largely due to
capital expenditures, the share buyback program and a normalization
of the working capital level. With the available cash and bank
facilities Boskalis has a directly available financial headroom of
more than EUR 1 billion. The company thereby comfortably meets its
financial covenants.
OUTLOOKBoskalis is in good shape with its
historically high order book and strong financial position. As
indicated at the publication of the 2020 annual results in early
March, 2021 will be largely determined by the further course of the
COVID-19 pandemic impacting the start-up of several large
international projects in the second half of this year. Given these
uncertainties and the project-based nature of a significant part of
our activities, it is difficult to make quantitative statements
about the 2021 annual result. However, with the developments in the
first quarter and the well-filled order book, there is a solid
basis to match the EBITDA of 2020 this year. Capital Expenditure in
2021 is expected to amount to approximately
EUR 350 million including dry dockings, but excluding any
acquisitions.
Adjusted Financial CalendarNote: the
publication date of the half-year results 2021 has been changed to
Tuesday 24 August, 07.00 CET.
2021-2022 |
FINANCIAL AGENDA |
12 May 2021 |
Annual General
Meeting of Shareholders |
14 May 2021 |
Ex-dividend
date |
17 May 2021 |
Record date for
dividend entitlement (after market closes) |
24 May 2021 |
Dividend payment
date |
24 August
2021 |
Publication of
2021 half-year results (new
date) |
12 November
2021 |
Trading update
third quarter 2021 |
10 March
2022 |
Publication of
2021 annual results |
12 May 2022 |
Trading update
first quarter 2022 |
12 May 2022 |
General Meeting
of Shareholders |
18 August
2022 |
Publication of
2022 half-year results |
11 November 2022 |
Trading update third quarter 2022 |
Consensus EstimatesBoskalis collects earnings
estimates from those sell-side analysts that follow Boskalis prior
to the publication of the (semi-)annual figures and planned trading
updates. The average of these estimates (consensus estimates) can
be consulted on the Boskalis website boskalis.com/IR/estimates.
FOR FURTHER INFORMATION
Investor relations:Martijn L.D.
Schuttevâerir@boskalis.com
Press:Arno Schikkerpress@boskalis.com
T +31 786969310
This is a Boskalis press release on the grounds of
article 17 paragraph 1 of the European Market Abuse Regulation
(596/2014).
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. The company provides
creative and innovative all-round solutions to infrastructural
challenges in the maritime, coastal and delta regions of the world.
With core activities such as coastal defense, riverbank protection
and land reclamation Boskalis is able to provide adaptive and
mitigating solutions to combat the effects of climate change, such
as extreme weather conditions and rising sea levels, as well as
delivering solutions for the increasing need for space in coastal
and delta regions across the world. The company facilitates the
development of offshore energy infrastructure, including renewable
wind energy. Boskalis is furthermore active in the construction and
maintenance of ports, waterways, access channels and civil
infrastructure, thus helping to facilitate trade flows and regional
socio-economic development. In addition, Boskalis is a global
marine salvage expert and has a number of strategic partnerships in
harbor towage and terminal services (Keppel Smit Towage and
Smit Lamnalco). With a versatile
fleet of more than 700 vessels and floating equipment and 9,600
employees, including associates, Boskalis is creating new horizons
around the world.
This press release can also be found on our website
www.boskalis.com.
- Boskalis Trading Update ENG 12052021