Boskalis jaarverslagen 2011

Market developments

The markets in which Boskalis operates are driven in the long term by growth in global trade, growing energy consumption, growth in world population and the consequences of climate change.

In the short term there is a stagnation of demand and an influx of new production capacity in a number of our markets, translating into pressure on volume and margins. However, what we are seeing in various regions around the world and in different market segments is clients who are developing all kinds of initiatives for new and in many cases sizeable maritime infrastructure projects. This applies in particular to energy and minerals-related projects in South America, West Africa and Australasia.

The market developments in the offshore market are relevant to a substantial part of our business. Following on from the demand for and construction of new oil and LNG import and export terminals, we expect to see growth for the terminal activities (Smit Lamnalco). Furthermore the developments at Transport, Heavy Lift and Subsea are largely dependent on a recovery in demand from the energy markets, in particular those of the offshore markets of Northwest Europe, Brazil and Southeast Asia. We are positive regarding the developments in the offshore market in the medium term.

Added to My report add to My report Source: Annual review 2011, Report of the Board of Management, page 34