Boskalis jaarverslagen 2011

Operational and financial developments

Revenue

During the year under review revenue rose by 5% to EUR 2.80 billion (2010: EUR 2.67 billion), with the increase being wholly attributable to the SMIT consolidation effect. The SMIT results were fully consolidated for the first time in 2011. In the first quarter of 2010 the SMIT result was still accounted for as result from associated companies based on a pro rata stake and was only fully consolidated from the second quarter. The fourth quarter of 2011 saw the successful completion of the sale of the SMIT terminal activities to Lamnalco and the acquisition of MNO Vervat. On balance these two transactions had no material effect on the revenue and result.

Royal Boskalis Westminster N.V. achieved a record revenue of EUR 2.8 billion in 2011 (2010: EUR 2.7 billion). Net profit declined to EUR 254 million (2010: EUR 311 million), though it should be noted that the 2010 result included exceptional pre-tax gains of EUR 33.6 million. In spite of the decline in net profit Boskalis proposes to maintain the dividend at EUR 1.24 per share.

Due to the increased uncertainties in the international markets there is continued hesitance amongst clients with regard to investment decisions, and this is putting pressure on both margins and equipment utilization levels. As a result EBITDA declined to EUR 591 million (2010: EUR 622 million) and the operating result (EBIT) to EUR 354 million (2010: EUR 402 million). The lower result in the core segment Dredging & Earthmoving was positively impacted by the financial settlement from previously completed projects. The remaining activities realized a stable or slightly higher operating result, partly as a result of the full consolidation of SMIT.

The order book increased to EUR 3,489 million as per end-2011 (end-2010: EUR 3,248 million). Compared to the 2011 mid-year level and adjusted for consolidation and deconsolidation effects, the order book was slightly higher at the end of the year.

Result

The operating result (EBIT) in 2011 was EUR 354 million (2010: EUR 402 million).

Result by Segment   2011   2010
(in EUR millions)        
Dredging & Earthmoving   266.9   320.5
Harbour Towage   29.3   23.2
Salvage, Transport & Heavy Lift   43.2   43.0
Terminal Services   25.0   22.3
Maritime Infrastructure   30.4   28.9
Non-allocated group costs   -40.7   -36.0
Groep   354.1   401.9

The decline in the operating result was mainly attributable to a lower result in the Dredging & Earthmoving segment. This lower result was largely due to the changed market conditions which put both fleet utilization levels and margins under pressure. Moreover, in 2010 the result of this segment was positively impacted by a pre-tax gain of EUR 33.6 million in connection with the settlement of a number of long-running insurance and other equipment-related claims.

Group earnings excluding the result of associated companies and before interest, tax, depreciation, amortization and impairments (EBITDA) equaled EUR 590.5 million (2010: EUR 621.5 million).

Net profit

The operating profit (EBIT) was EUR 354 million. Net of financing expenses of EUR 40.4 million and EUR 2.0 million in results from associated companies, pre-tax profit came to EUR 316 million. Net profit attributable to shareholders totaled EUR 254 million (2010: EUR 311 million).

Order book

In the course of 2011 Boskalis acquired, on balance, EUR 2,620 million worth of new contracts, broadly spread across the world and the various market segments. In addition, subsequent to the acquisition of MNO Vervat the contracts held by MNO Vervat were added to the order book under the Dredging & Earthmoving segment. The (revenue) value of these contracts was EUR 527 million at end-2011. This was offset by a EUR 105 million deconsolidation effect relating to the Terminal Services order book in connection with the sale of SMIT Terminals to Lamnalco, 50% of which has been included in the consolidation.

At end-2011 the total order book stood at EUR 3,489 million (end-2010: EUR 3,248 million). Compared to the order book at mid-2011 and adjusted for the consolidation and deconsolidation effects of MNO Vervat and SMIT Terminals, the order book was slightly higher at the end of the year.

ORDER BOOK   31 Dec 2011   31 Dec 2010
(in EUR millions)        
Dredging & Earthmoving   2,307   1,923
Harbour Towage   -   -
Salvage, Transport & Heavy Lift   182   162
Terminal Services   590   677
Maritime Infrastructure   410   486
Group   3,489   3,248

Added to My report add to My report Source: Annual review 2011, Report of the Board of Management, page 35