Boskalis jaarverslagen 2011

4. Segment reporting

The Group recognizes five operational segments which, as described below, constitute the strategic business units of the Group. These strategic business units offer different products and services and are managed separately because they require different strategies. Each of the strategic business units is reviewed by the Board of Management based on internal management reporting at least once every quarter. The following is a brief summary of the activities of the operational segments:

  • Dredging & Earthmoving

The main operational segment is Dredging & Earthmoving, which also includes port development, pipeline intervention activities, land reclamation, and coastal and riverbank protection. This segment is active around the world and can be divided into home markets (inside and outside Europe), international project markets and specialist niche markets. MNO Vervat B.V. (“MNO Vervat”) is acquired in December 2011 and is yet recorded in the operational segment Dredging & Earthmoving.

  • Salvage, Transport & Heavy Lift

This operational segment provides transport services with an array of different seaworthy transport vessels, some of which are self-propelled. With its specialist technical know-how, Heavy Lift carries out specialist activities around the world using floating sheerlegs. Marine Project operations are included in this segment (including various types of transport, hoisting and installation activities carried out offshore) and Subsea (underwater activities with divers and remote control equipment). Finally, this segment also includes the salvage activities, consisting of providing wreck removal and emergency response services.

  • Harbour Towage

The third operational segment in which the Group operates is Harbour Towage. The activities concern assisting incoming and departing seagoing vessels and other vessels, including large container ships, roll-on roll-off ships, tankers carrying oil or chemicals, other bulk carriers and cargo ships, as well as offshore oil and gas drilling platforms.

  • Terminal Services

The fourth operational segment in which the Group operates is Terminal Services. Within this segment the company is one of the world’s leading suppliers of maritime and terminal services to the oil and gas industry
with both its own terminal services and through a 50% interest in Lamnalco. As from the sale of the SMIT terminal business to Lamnalco in the fourth quarter, this segment mainly comprises of the 50% interest in Lamnalco.

  • Maritime Infrastructure

The fifth operational segment is Maritime Infrastructure. The Group is involved in this segment through its 40% interest in Archirodon, a leading contractor in this sector.

The operational segments are monitored based on the segment result before finance income and expenses
and taxation. The segment result is used for performance measurement of operational segments, both between segments and compared to other companies in the same industries. Inter-operational segment services, if any,
take place at arm’s length basis. In the reporting period there were no material inter-operational segment services.

4.1 Operational segments

2011   Dredging & earth-moving   Salvage, Transport & Heavy Lift   Harbour Towage   Terminal services   Maritime infrastructure   Holding & eliminations   Group
                             
Revenue   1,835,386   375,949   233,331   155,690   196,568   4,113   2,801,037
Segment result   266,930   43,187   29,360   24,977   30,364   -40,725   354,093
Operating result                           354,093
Share in result of associated companies   -322   1,161   -27   1,208   ­­—     2,020
Non-allocated finance income and expenses                           -40,368
Non-allocated taxation                           -54,735
Net group profit                           261,010
                             
Segment assets   2,351,336   776,393   838,069   495,089   164,840   -32,831   4,592,896
Investments in associated companies   9,354   954   9,123   3,541     456   23,428
Non-allocated assets                           57,346
Total assets                           4,673,670
                             
Segment liabilities   1,564,915   200,940   111,856   89,114   56,656   -179,372   1,844,109
Non-allocated liabilities                           1,082,246
Total liabilities                           2,926,355
                             
Investments in property, plant and equipment   151,351   56,712   32,379   27,489   13,892   10,072   291,895
                             
Depreciation on property, plant and equipment   96,317   41,303   40,751   27,705   11,963   1,079   219,118
Amortisation on intangible assets     1,225   4,564   2,123     2,927   10,839
Impairment losses on property,                            
plant and equipment   -759   7,190           6,431
                            236,388

2010   Dredging & earth-moving   Salvage, Transport & Heavy Lift   Harbour Towage   Terminal services   Maritime infrastructure   Holding & eliminations   Group
                             
Revenue   1,801,082   296,533   155,451   147,543   264,690   9,140   2,674,439
Segment result   320,468   42,986   23,177   22,340   28,851   -35,952   401,870
Operating result                           401,870
Share in result of associated companies   3,475   323   74   227     20,874   24,973
Non-allocated finance income and expenses                           -36,836
Non-allocated taxation                           -77,125
Net group profit                           312,882
                             
Segment assets                            
Investments in associated companies   2,145,717   790,357   765,090   533,891   220,623   -207,842   4,247,836
Non-allocated assets   8,002   1,851   8,121   2,187     456   20,617
Total assets                           46,800
                            4,315,253
                             
Segment liabilities   972,255   207,923   359,246   65,881   114,774   -125,313   1,594,766
Non-allocated liabilities                           1,121,193
Total liabilities                           2,715,959
                             
Investments in property, plant and equipment   183,856   46,902   20,906   41,616   6,684   30,383   330,347
                             
Depreciation on property, plant and equipment   103,371   31,964   27,608   22,861   18,006   915   204,725
Amortisation on intangible assets     1,138   2,296   2,238     478   6,150
Impairment losses on property, plant and equipment   8,729             8,729
                            219,604

The non-allocated assets comprise deferred tax assets, income tax receivable and derivatives. The non-allocated liabilities comprise deferred tax liabilities, income tax payable, derivatives and interest-bearing borrowings. 

Added to My report add to My report Source: Annual report 2011, page 79