Boskalis maintains its 2021 EBITDA targets
Papendrecht, November 12, 2021
THIRD QUARTER HIGHLIGHTS
- Busy quarter with increased revenue
- Higher usage in dredging and offshore energy
- Salvage: exceptionally quiet area
- Order book: 5.1 billion euros
- Strong and stable net cash position
OUTLOOK FOR 2021
- Dredging: second half loaded with high utilization of the hopper fleet
- Offshore Energy: stable market situation in line with the first half
- Towing and recovery: stable image of towing; Calm recovery second semester
- Maintain EBITDA guidance: 2nd semester in line with 1st semester
Royal Boskalis Westminster NV (Boskalis) ended a busy third quarter. In line with expectations, quarterly sales are above the quarterly average for the first half of the year.
During the last quarter, projects continued to be more or less impacted by the consequences of the COVID-19 pandemic. Restrictions on international travel and entry make it harder than ever to keep projects and vessels operational, especially in the Far East, where additional costs from COVID measures are weighing heavily on the margins of some projects. Nonetheless, Boskalis was once again successful in executing projects in the last quarter, with higher vessel utilization.
The order book stood at 5.1 billion euros at the end of September, down from the record level at the end of June. More than 0.3 billion euros in contracts were acquired in the third quarter. The order book is still very well filled, thus providing a solid basis for the remainder of this year and the following period.
Boskalis maintains its EBITDA targets for the full year 2021. Barring unforeseen circumstances, the EBITDA level for the second half will be in line with the 226 million euros achieved in the first half.
Boskalis’ financial position remains very strong and net cash of 210 million euros is virtually unchanged from mid 2021.
The third trimester at Dredging and Interior Infra went according to expectations. Numerous projects in Asia (mainly in the Philippines and Singapore), Denmark and the Netherlands contributed well to the turnover. The hopper fleet was used very well in the third quarter and the cutters fleet was also busier compared to the first half of the year. Quarterly revenues are up from the quarterly average for the first half.
Various small projects were acquired during the quarter. In addition to numerous variation orders, new projects were mainly acquired in Europe, the Middle East and Asia. In total, the Dredging & Infra-Infra order book is down slightly compared to mid-year 2021.
In Offshore energy, the third quarter went well. Offshore wind projects in Taiwan and in Europe made a significant contribution to the turnover of the Contracting division. In the services division, Marine Transport & Services made a strong contribution and Subsea Services, in part thanks to the integration of Rever Offshore, maintained the good performance of the first half. The use of heavy lift vessels was slightly lower compared to the first half of the year, while the rest of the fleet (diving, crane, survey, cable and pipe support vessels descent) was better used.
During the quarter, new contract awards were largely related to service activities (transportation, submarine services and expertise). Overall, the Offshore Energy order book is down compared to mid-2021.
Within the Towing and recovery segment, Salvage had an exceptionally calm third quarter after a very strong first half financially. In Towing, the contribution of towing joint ventures is in line with the quarterly operational contribution for the first half of the year.
Boskalis’ strong financial position did not change significantly during the quarter. The â¬ 100 million share buyback program was completed in mid-September and the current investment program, in particular the new crane vessel Bokalift 2, is proceeding according to expectations. Net cash is almost stable at 210 million euros, excluding lease obligations related to IFRS16. With available cash and cash equivalents as well as banking facilities, Boskalis now has readily available financing capacity of over â¬ 1 billion.
Based on the ongoing projects and the order book, Boskalis is doing well. Nevertheless, the consequences of the strict restrictions of COVID-19, especially in the Far East, play an important role and the definitive start of the large-scale project in the Philippines is of great importance.
For 2021, based on fleet planning, order book projects and barring unforeseen circumstances (COVID-19), the Management Board expects the EBITDA level for the second half of the year to be in line with 226 million euros from the first half of the year.
For 2021, capital expenditure is expected to be around â¬ 375 million, including dry docks and offshore support and survey vessels already acquired earlier this year. This does not include any acquisitions.
|March 10, 2022||Publication of 2021 annual results|
|May 12, 2022||Update on exchanges for the first quarter of 2022|
|May 12, 2022||Annual General Meeting of Shareholders|
|August 18, 2022||Publication of 2022 half-year results|
|November 11, 2022||Update on the exchanges for the third quarter of 2022|
Boskalis collects earnings estimates from sell-side analysts who follow Boskalis ahead of the release of (semi) annual numbers and scheduled trading updates. The average of these estimates (consensus estimates) can be viewed on the Boskalis website boskalis.com/IR/estimates
FOR MORE INFORMATION
Martijn LD SchuttevÃ¢er
T +31 786969310
This is a press release from Boskalis on the basis of article 17 paragraph 1 of the European regulation on market abuse (596/2014).
This is an English translation of the Dutch press release. In the event of any discrepancy between the Dutch original and this translation, the Dutch text will prevail.
Royal Boskalis Westminster NV is one of the world’s leading service providers operating in the dredging, marine infrastructure and maritime services industries. The company provides creative and innovative global solutions to infrastructure challenges in the maritime, coastal and delta regions of the world. With core activities such as coastal defense, shoreline protection and land reclamation, Boskalis is able to provide adaptation and mitigation solutions to combat the effects of climate change, such as extreme weather conditions and sea level rise, as well as providing solutions for the growing need for space in coastal and deltaic regions around the world. The company facilitates the development of offshore energy infrastructure, including renewable wind power. Boskalis is also active in the construction and maintenance of ports, waterways, access canals and civil infrastructure, thus helping to facilitate trade flows and regional socio-economic development. In addition, Boskalis is a global expert in maritime rescue and has a number of strategic partnerships in port and terminal towing services (Keppel Smit Towage and Smit Lamnalco). With a versatile fleet of more than 650 vessels and floating equipment and 9,900 employees, including associates, Boskalis is opening up new horizons around the world.
This press release is also available on our website www.boskalis.com.
Trading update Q3 2021 FR