Modest half-year profit for Royal Boskalis Westminster (NL)

The headlines for first half of 2004 are:

  • Net profit in line with expectations: € 7.4 million; profit per share € 0.27
  • Turnover falls to € 412 million; operational results under pressure
  • Orderbook stable at € 1.1 billion; order intake € 426 million

Dredging contractor Royal Boskalis Westminster nv announced that it has, in line with expectations, made a modest net profit of € 7.4 million. Boskalis is making rapid progress with the organizational adjustments announced in March of this year. The measures primarily involve sharper purchasing, the rationalization of equipment and the organization, as well as better portfolio management of the home markets. They involve approximately 450 jobs worldwide. The first phase has now been completed. The reorganization expenses have led to an additional pressure of € 10.7 million before taxation on the results for the first half year.

Rob van Gelder, Boskalis CEO:
´The results over the last six months are, as we expected, modest. However, we have maintained our good market position and that is important in the present circumstances.
I am satisfied with the rapid progress of the organizational adjustments, which is crucial in the fight for market position.”

Boskalis made a net profit of € 7.4 million in the first half of 2004. Turnover was € 412 million and new orders were acquired amounting to € 426 million, keeping the orderbook stable at € 1.1 billion. The operational results were under pressure and fleet utilization was moderate. The net investments in equipment amounted to € 66 million and the financial position remained sound with solvency at 42%.

Outlook for 2004
Both the volume in home markets and margins for large international works are expected to be under continued pressure in the second half of 2004.
The utilization of the larger cutters will be satisfactory and utilization of the hopper fleet will be better than in the first six months of the year.
On the one hand, the positive effects of the organizational adjustments will emerge; on the other, it is uncertain how much of this will be used for maintaining and strengthening the market position. In addition, during the second half of the year, there will still be reorganization expenses.
On the basis of progress so far and the amount of work for this year in the orderbook, for the year as a whole we expect on balance a turnover of approximately € 1 billion (2003: € 1,046 million) and a net result of € 20 - 25 million.

Source: Boskalis

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