Boskalis: Strong operational half year and positive outlook
Papendrecht, 24 August 2021
KEY FIGURES FIRST HALF YEAR 2021
- Revenue: EUR 1.32 billion (H1 2020: EUR 1.26 billion)
- EBITDA: EUR 226 million (H1 2020: EUR 204 million)
- Net profit: EUR 72 million (H1 2020: loss EUR 96
million)
- Order book: EUR 5.53 billion (End of 2020: EUR 5.31
billion)
OUTLOOK SECOND HALF OF 2021
- Dredging: busy second half of the year with good fleet
utilization
- Offshore Energy: similar picture to the first half of the
year
- Towage & Salvage: Towage stable. Salvage operationally
unpredictable; no major settlement results
- EBITDA outlook second half year: in line with first half
year
Royal Boskalis Westminster N.V. (Boskalis) has concluded a good
half year with a strong increase in earnings despite ongoing
COVID-19 related restrictions.
Compared to last year, revenue increased by 4.6% to EUR 1.32
billion (H1 2020: EUR 1.26 billion). Adjusted for (de)consolidation
and currency effects, revenue growth was 2.7%.
EBITDA increased by 10.8% to EUR 226 million (H1 2020: EUR 204
million) and operating profit increased by 34.1% to EUR 97 million
(H1 2020: EUR 72 million).
Net profit amounted to EUR 72 million compared to a net loss of
EUR 96 million a year ago. There were no exceptional gains or
losses in the first half of the year, where the first half-year
result 2020 included exceptional charges of EUR 144 million after
tax.
In the Dredging & Inland Infra segment, revenue decreased by
2.6% compared to the same period last year with a slightly lower
result. This development is partly due to continuing COVID-19
related travel restrictions and quarantine measures resulting in
operational inefficiencies on certain large projects. Furthermore,
maintenance schedules for the mid- to large sized trailing suction
hopper dredgers were brought forward to the second quarter,
resulting in higher operational costs and a lower availability. In
view of the well-filled order book and busy schedules, it was
decided to bring forward part of the maintenance planned for the
second half of the year and carry it out in the first half. The
largest revenue contribution came from projects in Southeast Asia,
the Indian subcontinent, Canada, Denmark and the Dutch market.
At Offshore Energy, revenue increased by more than 18% with a
significantly higher result. Contracting revenue was virtually
stable, with the revenue growth being on the services side of the
business. Both Marine Transport & Services and Subsea Services
had a good first half year and the integration of the recently
acquired Rever Offshore also contributed significantly to the
revenue growth. Across the board, the various activities
contributed to the good divisional result, with in particular a
good half year for the offshore wind projects and Subsea
Services.
Within the Towage & Salvage division, Salvage successfully
completed a number of high-profile assignments, including the
refloating of the Ever Given in the Suez Canal and the recovery of
the Eemslift Hendrika off the coast of Norway. Despite this, the
first half of the year was relatively quiet, especially compared to
the exceptionally busy 2020. Despite a lower revenue, the
divisional result increased substantially. In addition to a good
half year at Towage, this is primarily due to a substantial
settlement result at Salvage relating to an emergency response
assignment operationally completed in 2019.
The customary holding and unallocated group costs increased
compared to 2020, however are still at a low level due to a wide
range of COVID-19 related cost-saving measures.
The net cash position decreased in line with expectations but
the financial position is still very strong. The exceptionally high
net cash position at year-end 2020 declined to EUR 213 million,
primarily as a result of investments, the payment of dividend, the
share buyback program and a normalization of working capital. With
the available cash and bank facilities, Boskalis has a direct
financing capacity in excess of EUR 1 billion. Solvency remains
high at 50% and Boskalis comfortably meets its financial
covenants.
The order book increased by over 4% to a new record high of EUR
5.53 billion (year-end 2020: EUR 5.31 billion). The largest
increase in the portfolio took place in Dredging & Inland
Infra, within Europe. Among other things, the project Meanderende
Maas, which is part of the national Flood Protection Program in the
Netherlands was acquired and substantial infrastructure projects
were won in the United Kingdom and Belgium. With the projects in
the order book, a significant part of the revenue for 2021 has been
secured and there is a very solid basis for the years
thereafter.
Peter Berdowski, CEO Boskalis: “We can reflect on a strong first
half year with a substantial increase in earnings. Certainly in
light of the still restrictive COVID-19 measures, worldwide, this
is a major achievement.
Our Dredging activities are most affected by the ongoing travel
restrictions and stringent quarantine measures. Especially in
Southeast Asia, COVID-19 still poses many challenges on a daily
basis. Closer to home, we have been able to do a lot of work in the
Netherlands and we are in full swing with the dredging work for the
construction of the Fehmarnbelt tunnel that will connect Germany
and Denmark. In terms of the outlook, the vessel schedule looks
promisingly busy with the imminent start of major work in the
Philippines. In view of the expected high fleet utilization, we
have carried out extra maintenance in the first half of the year so
that the hoppers are fully available to work.
Offshore Energy had a very strong half year continuing the
upward trend of last year. Offshore wind, accounting for 43% of
revenue, contributed well to the result. In addition, we see that
the contribution from services has further increased. Both heavy
transport and subsea services were busy and the activities acquired
from Rever Offshore at the end of 2020 made an excellent
contribution. The integration of Rever within Boskalis is
progressing very well and is exceeding our own expectations
financially.
Many people will associate early 2021 with that moment when the
economic artery through Egypt was suddenly blocked by the Ever
Given. Worldwide billions of people followed in suspense as to
whether our salvage colleagues would succeed in refloating the
“stranded whale”. Like in an adventurous novel they worked under
extreme pressure on different scenarios to refloat the gigantic
container ship as quickly as possible. Finally, after six long and
intense days, they succeeded. This brought an end to the blockade
of the Suez Canal and the hundreds of waiting ships could continue
their journey. A unique feat of craftsmanship combined with
exemplary cooperation with the local authorities.
Another commendable achievement is the new record high level of
the order book. At over EUR 5.5 billion, it provides a healthy
foundation of work and fleet utilization for the coming years,
permitting us to also be more selective when acquiring new
projects. Thus, we look forward with more confidence to the second
half of the year and the years to come.
We will soon start with the update of our new corporate business
plan, 2022-2024. An important pillar of this plan will be our
vision on how we can contribute to tackling the effects of climate
change, both in the context of mitigating and adaptive measures.
What is certain is that Boskalis is entering a good period of
economic prosperity and we see plenty of opportunities to make a
highly relevant contribution to the major social challenges of our
time.”
OutlookAfter an operationally strong first half
of the year and in view of the order book, Boskalis is in good
shape. The second half of the year will certainly still be affected
by stringent COVID-19 restrictions impacting the execution and
start-up of projects, particularly in the Far East.
At Dredging & Inland Infra, work volume and fleet
utilization are expected to increase, partly due to upcoming work
in the Philippines, in addition to major ongoing projects in
Singapore, Denmark and the Netherlands.
At Offshore Energy, the portfolio provides a good basis for a
stable second half of the year. In contracting, the successful
completion of the first installation campaign on the Changfang
& Xidao offshore wind project in Taiwan is important. In
services, despite COVID-19, the outlook at Marine Transport &
Services is favorable and the offshore wind market is providing a
lot of work across the division.
Towage & Salvage; for Towage a stable outlook is expected
whilst for Salvage a significantly lower result is expected in the
second half of the year after an exceptional settlement result in
the first half.
The Board of Management expects, based on fleet planning and
works in portfolio, and barring unforeseen (COVID-19)
circumstances, that the EBITDA level of the second half of the year
will be in line with that of the first half.
For the whole of 2021, a capital expenditure of approximately
EUR 375 million is expected including dry-dockings and four
recently acquired offshore support and survey vessels. This does
not include any acquisitions. This amount is in line with the
multi-year investment program presented at the beginning of 2020 in
which part of the planned investments for 2020 were postponed to
2021 and 2022. The largest investment for this year is the
conversion of the crane vessel, the Bokalift 2, which upon
completion will immediately start on an offshore wind project.
>>> click here for the full
version of the 2021 half year reportincluding all the financial
details <<<
KEY FIGURES |
1st HY 2021 |
1st HY 2020 |
2020 |
(in EUR
million) |
|
|
|
Revenue |
1,319 |
1,261 |
2,525 |
EBITDA |
226 |
204 |
404 |
Net result from
JVs and associates |
18 |
8 |
19 |
Operating
result |
97 |
72 |
140 |
Exceptional
items |
- |
-148 |
-195 |
EBIT |
97 |
-75 |
-56 |
Net operating
profit |
72 |
48 |
90 |
Net profit
(loss) |
72 |
-96 |
-97 |
Earnings per
share (in euro) |
0.56 |
0.39 |
0.69 |
|
|
|
|
|
30 June 2021 |
30 June 2020 |
End 2020 |
Net financial
position: cash (debt) |
213 |
190 |
439 |
Solvency |
50% |
51% |
51% |
Order book |
5,528 |
4,661 |
5,306 |
Definitions: EBITDA is EBIT before depreciation, amortization,
impairment and other exceptional charges; Operating result is EBIT
adjusted for exceptional charges; Net operating profit is Net
profit adjusted for exceptional charges; EPS is adjusted for
Exceptional items; Net result from joint ventures and associates
are presented excluding impairment charges. EBIT(DA) and operating
result include our share in the net result of joint ventures and
associates.
Live audio webcastThe Board of Management of
Royal Boskalis Westminster will comment on the 2021 half-year
results at the analyst meeting (11.30 am CET) on 24 August 2021.
This meeting can be followed by means of a live webcast, details of
which can be found on the homepage (www.boskalis.com/HY2021).
2021-2022 |
FINANCIAL CALENDAR |
24 August
2021 |
Publication of
2021 half-year results |
12 November
2021 |
Trading update on
third quarter of 2021 |
10 March 2022 |
Publication of
2021 annual results |
12 May 2022 |
Trading update on
first quarter of 2022 |
12 May 2022 |
Annual General
Meeting of Shareholders |
18 August
2022 |
Publication of
2022 half-year results |
11 November
2022 |
Trading update on
third quarter of 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 HY 2021 press release ENG
- Boskalis_Half Year Report_2021