Boskalis jaarverslagen 2011

Liquidity and funding risks

As is customary in the contracting industry, Boskalis also has large amounts outstanding in the form of bank guarantees or surety bonds (guarantees from insurance companies), usually in favor of clients. Given that the availability of adequate credit and in particular bank guarantee facilities is essential to the uninterrupted conduct of business, Boskalis’ funding policy is aimed at maintaining a solid financial position. Our moderate level of leverage in the balance sheet and diversified sources of funding provide for sufficient capacity to absorb liquidity risk and warrants a continuous availability of sufficient credit lines. The company currently has ample credit and bank guarantee facilities at its disposal and operates well within the covenants agreed for the financing arrangements put in place in 2010. We believe that the current state of the financial markets does not present a direct threat to our strength.

 

Added to My report add to My report Source: Annual review 2011, Report of the Board of Management, page 52