Trading update: Boskalis maintains 2021 EBITDA guidance
Papendrecht, 12 November 2021
THIRD-QUARTER HIGHLIGHTS
- Busy quarter with an increase in revenue
- Higher utilization in both Dredging and Offshore Energy
- Salvage: exceptionally quiet quarter
- Order book: EUR 5.1 billion
- Solid stable net cash position
OUTLOOK FOR 2021
- Dredging: busy second half of the year with high hopper fleet
utilization
- Offshore Energy: stable market picture in line with first half
year
- Towage & Salvage: Towage stable picture; Salvage quiet
second half year
- EBITDA guidance maintained: second half year in line with first
half year
Royal Boskalis Westminster N.V. (Boskalis) has closed a busy
third quarter. In line with expectations, quarterly revenue was
higher than the quarterly average for the first half year.
In the past quarter, projects continue to be affected to a
greater or lesser extent by the consequences of the COVID-19
pandemic. International travel and entry restrictions make it as
challenging as ever to keep projects and vessels operational,
especially in the Far East, where the additional costs due to COVID
measures are weighing heavily on the margins of certain projects.
Nevertheless, Boskalis was once again successful in executing
projects in the past quarter, with a higher vessel utilization.
The order book stood at EUR 5.1 billion at the end of September,
down from the record level at the end of June. Over EUR 0.3 billion
worth of contracts were acquired in the third quarter. The order
book is still very well filled thereby offering a solid foundation
for the rest of this year and the period thereafter.
Boskalis is maintaining its EBITDA guidance for the full year
2021. Barring unforeseen circumstances, the EBITDA level in the
second half of the year will be in line with the EUR 226 million
achieved in the first half.
The financial position of Boskalis remains very solid and the
net cash position of EUR 210 million is virtually unchanged
compared to mid 2021.
Operational developments.The third quarter at
Dredging & Inland Infra
proceeded in line with expectations. Numerous projects in Asia
(mainly in the Philippines and Singapore), Denmark and the
Netherlands contributed well to revenue. The hopper fleet was very
well utilized in the third quarter and the cutter fleet was also
busier compared to the first half of the year. Quarterly revenue
increased compared to the quarterly average for the first half of
the year.
A variety of smaller projects were acquired during the quarter.
In addition to numerous variation orders, new projects were
primarily acquired in Europe, the Middle East and Asia. On balance,
the Dredging & Inland Infra order book declined slightly
compared to mid-year 2021.
Within Offshore Energy, the third quarter
proceeded well. Offshore wind projects in Taiwan and Europe
contributed significantly to revenue within the contracting
cluster. In the services cluster, Marine Transport & Services
contributed significantly and Subsea Services, partly due to the
integration of Rever Offshore, maintained the strong performance
from the first half of the year. The utilization of the heavy
transport vessels was fractionally lower compared to the first half
of the year, while the rest of the fleet (diving support-, crane-,
survey-, cable laying- and fall pipe vessels) was better
utilized.
During the quarter, new contract awards were largely related to
the services activities (transport, subsea services and survey). On
balance, the Offshore Energy order book decreased compared to mid
2021.
Within the Towage & Salvage segment,
Salvage experienced an exceptionally quiet third quarter after a
financially very strong first half year. In Towage, the
contribution of the towage joint ventures was in line with the
quarterly operational contribution of the first half year.
Financial positionBoskalis’ strong financial
position did not change significantly during the quarter. The EUR
100 million share buyback program was completed mid-September and
the ongoing investment program, including the new Bokalift 2 crane
vessel, is proceeding in line with expectations. The net cash
position is virtually stable at EUR 210 million, excluding
IFRS16-related lease obligations. With the available cash and cash
equivalents plus bank facilities, Boskalis now has a readily
available financing capacity in excess of EUR 1 billion.
Outlook Based on projects in execution and the
order book, Boskalis is in good shape. Nevertheless, the
consequences of stringent COVID-19 restrictions, particularly in
the Far East, play an important role and the definitive start of
the sizable project in the Philippines is of great importance.
For 2021, based on fleet planning, projects in the order book
and barring unforeseen (COVID-19) circumstances, the Board of
Management expects the EBITDA level of the second half of the year
to be in line with the EUR 226 million from the first half of the
year.
For 2021, capital expenditures are expected to amount to
approximately EUR 375 million, including dry-dockings and the
offshore support and survey vessels already acquired earlier this
year. This does not include any acquisitions.
FINANCIAL CALENDAR |
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 650 vessels and floating equipment and
9,900 employees, including associates, Boskalis is creating new
horizons around the world.
This press release can also be found on our website
www.boskalis.com.
- Trading update Q3 2021 ENG