Boskalis jaarverslagen 2011

Salvage, Transport & Heavy Lift

Salvage: emergency response, wreck removal, environmental care and consultancy. Transport: chartering, rental of work vessels, heavy transport and (ocean) towage services. 
Heavy Lift: lifting work, maritime projects, marine support and subsea activities.

    2011   2010*
(in EUR millions)        
Revenue   376   296
Operating profit   43.2   43.0
Order book   182   162

* SMIT activities consolidated from the second quarter

Revenue

Boskalis is active in this segment through the relevant activities of SMIT. Revenue in 2011, including the proportionate consolidation of associates, was EUR 376 million (2010 three quarters: EUR 296 million).

Through a good combination of emergency response and wreck clearance projects, Salvage was able to look back on a good year. At the beginning of the year, a large container ship which had partially sunk off the coast of Mumbai in India was successfully refloated. Off the coast of Indonesia work continued on salvaging the sunken Hyundai 105 car carrier. The wreck is being sawn into sections for subsequent removal.
On 13 January 2012 the Costa Concordia cruise liner ran aground on rocks off the Italian island of Giglio and partially capsized. Shortly afterwards SMIT, together with a local partner, was awarded the contract to remove the fuel from the ship. As the annual report went to press the work had reached a concluding stage.

The Transport activities, which are performed primarily for the oil and gas industry, showed a mixed picture. The spot market in North-West Europe picked up in 2011. However, whilst capacity deployed in the Far East and Middle East became available as a result of contracts reaching conclusion, the company experienced difficulty in redeploying this capacity on new contracts and, where it did succeed, tariffs were relatively low. A part of this, latter activity was also sold to Lamnalco as part of the sale of the SMIT Terminal activities.

The utilization level of the floating sheerleg cranes (Heavy Lift) was very poor in 2011, resulting in a substantial underutilization. Conversely, the Subsea diving activities, where two diving support vessels are now in use, had a reasonably busy year, with an increasing demand for inspection, repair and maintenance services from the oil and gas industry.

Segment result

The operating result, including the proportionate consolidation of associates, was EUR 43.2 million (2010 three quarters: EUR 43.0 million). The result was negatively impacted by a EUR 7.2 million impairment charge on three ships belonging to Transport.

Order book

The order book level increased to EUR 182 million at year-end (end-2010: EUR 162 million) and currently consists mainly of long-term Transport contracts.

Added to My report add to My report Source: Annual review 2011, Report of the Board of Management, page 38